Investigation: U.S. and European investors profit from Yemen bombing

The retirement money of American and European state employees is partially invested in a company that has made parts for bombs dropped on Yemen.

Journalists from reported.ly analyzed documents that traced the complicated trail of shipment of US-designed bomb parts across the world to their final destination as part of the Yemeni conflict.

The bomb parts were designed in the U.S., built by a German company at a factory in Italy, then made their way through a port in Saudi Arabia on to Dubai.

The investigation sheds light on the surprising source of the funding that supports a bombing campaign that has cost thousands of civilian lives.



Yemen is in the middle of a conflict that has pitted the government against local rebels. Neighboring Saudi Arabia and the United Arab Emirates have taken the side of the Sunni government and have conducted airstrikes dropping bombs on the Shiite rebels.

More than 180 major pension funds and financial institutions have invested in Rheinmetall Defence AG, the German arms manufacturer supplying the bombs that were dropped on Yemen. They include the New York State retirement fund, Norway’s state pension fund and CollegeAmerica, the largest college fund in the U.S.

German activists have launched a campaign to lobby the government to revoke the company's license to export arms. They are also trying to step up the financial pressure on the company by urging major shareholders to sell their stock. Until recently, JP Morgan Chase was a major shareholder in the company but the investment bank reduced its shareholding substantially a few weeks ago.

Bloomberg predicts the German company will return to a $145 million profit this year, despite being embroiled in a number of controversies.

The German company filed a $134 million compensation claim against the German government after the company lost a contract with Russia due to Ukraine-related embargoes.


The MK80 series of bombs

Activists have criticized the company for moving production to countries like South Africa, Saudi Arabia and Indonesia, where they say corporate activity is increasingly difficult to regulate. Rheinmetall was fined about $41 million last year after one of its subsidiaries were found to have paid bribes in a Greek arms deal.

While not illegal, profiting from the sale of weapons is highly controversial. There is ample precedent in the United States for divestment from weapons manufacturers. CalPERS, the largest US pension fund, said it would sell all of its stock in gun manufacturers after the Newtown, Connecticut school shooting in 2013.

Just last week Pope Francis condemned the weapons industry, saying that people who manufacture weapons or invest in weapons industries are hypocrites, if they call themselves Christian.

The reported.ly investigation — which can be found in full here — shows that the US-designed MK82 and MK84 bomb parts were made by Rheinmetall subsidiary RWM Italia S.p.a and destined for Burkan Munitions Systems, an arms manufacturer based in the Middle East. Burkan was once partly owned by Rheinmetall. Burkan supplies the United Arab Emirates armed forces, whose fighter jets joined the coalition bombing Yemen in March.

Human Rights Watch researchers in Yemen have photographed bombs bearing RWM Italia labels that were used to destroy a government complex in the northern parts of the country. Photographs of the bombs and video of the building were verified by Reported.ly.

No civilian casualties were documented in this attack. However, HRW researchers believe that it is likely these types of bombs were used in other parts of Yemen. HRW documented potentially "unlawful" attacks on civilian areas including residential buildings and markets.

The New York State Comptroller’s office, which manages the NYS Retirement Fund, did not reply to questions. Neither did Rheinmetall or JP Morgan Chase. Capital Group, which manages the funds for College America, took questions but didn't want to comment on the investigation.

http://mashable.com/2015/06/24/u-s-and-european-investors-profit-from-yemen-bombing/?utm_cid=mash-com-Tw-main-link

Before and after bombing pics on the link. People who make money out of war and death and destruction and the lowest of the low.