The Ministry also announced changes to the exemption on government bonds.
The Press Release may be accessed here and below
Please find the Council on Ethics’ recommendations here:
--Africa Israel Investments and Danya Cebus
Exclusion of companies: The Ministry of Finance has decided to exclude the companies Sesa Sterlite, Africa Israel Investments and Danya Cebus from the Government Pension Fund Global (GPFG).
On the 13th of September 2013, the Ministry of Finance received a recommendation from the Council of Ethics to exclude the company Sesa Sterlite from the GPFG. The recommendation builds on an earlier recommendation to exclude the company Vedanta Resources Ltd. (Vedanta ) and two of its subsidiaries, which operate in India. The Ministry followed the Council's recommendation to exclude Vedanta and its two subsidiaries in 2007.
Sesa Sterlite is a newly established subsidiary of Vedanta. The Council's assessment is that the relevant operations in India, which are currently run through the company Sesa Sterlite, present an unacceptable risk of environmental damage and serious violations of human rights. The Council has regularly updated its assessment of Vedanta and the basis for exclusion is still considered to be present. The Ministry of Finance, in accordance with the Council's recommendation, has decided to exclude Sesa Sterlite from the Fund's investment universe, as well as to maintain the exclusion of Vedanta.
On the 1st of November 2013, the Ministry of Finance received a recommendation from the Council of Ethics to exclude the companies Africa Israel Investments and Danya Cebus from the Fund due to contribution to serious violations of individual rights in war or conflict through the construction of settlements in East Jerusalem. The companies were excluded during the period August 2010 to August 2013 on the basis of similar activities. The Ministry of Finance has decided to follow the Council's recommendation.
The Ministry's final decision on whether or not to divest from a company is made on the basis of the Council's recommendation. The Ministry has not made an independent assessment of every aspect of the Council's recommendation but is satisfied that the recommendation document establishes with reasonable certainty that an investment in the company represents an unacceptable risk of violating the Ethical Guidelines.
Recommendations from the Council of Ethics