Scottish Government turning 'blind eye' to arms sales in Gaza

Amnesty International says the government’s due diligence checks when handing out business grants fail to take into account where the company’s products end up.

It adds this is “inconsistent” with the Scottish Government’s demands that the UK Government stops selling arms to Israel.

The PCS union, which represents civil servants within Scottish Enterprise, also raised concerns earlier this year their members were “potentially complicit” in war crimes should Israel be found to have broken international law.

However, both the Scottish Government and its economic development agency Scottish Enterprise strongly denies suggestions its human rights checks are inadequate, and say no grants have been given for the manufacture of arms in Scotland.

Information obtained by Amnesty through a Freedom of Information (FOI) request shows the level of human rights checks are based on the amount of money a company requests from Scottish Enterprise rather than what the company sells or where it sells to.

Grants below £100,000 are not subject to any human rights checks.

The FOI responses also reveal no company has failed Scottish Enterprise’s human rights due diligence checks.

However they also show that in the past 18 months, Scottish Enterprise has provided hundreds of thousands of pounds to defence companies who have UK export licences for Israel.

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BAE Systems Surface Ships Ltd received £9,600 in 2023 and £360,000 in the first half of 2024, Leonardo received £786,125 in 2023, and Raytheon Systems received £500,000 in the first half of 2024.

Amnesty says this cash could directly or indirectly find its way into the supply chain sending weapons for use in Gaza, for example by selling components to the US where it is then assembled into a plane and sold on to others.

This comes after the UK Government said in October it was suspending 30 of its 350 export licences to Israel over concerns about the risks they could be used in violation of international humanitarian law.

In May, the International Criminal Court accused both Israel and Hamas of war crimes and applied for arrest warrants.

A United Nations report also accused Israel of crimes against humanity.

Since then First Minister John Swinney has called for an immediate ceasefire in the region, and former first minister Humza Yousaf has called for an immediate end to UK arms sales to Israel, warning the UK is “in danger of being complicit in the killing of innocent civilians”.

Amnesty said: “[Scottish ministers] are correct to highlight to the UK Government its own risk of complicity in such crimes by Israel if it continues to permit the export of weapons.

“However, it is entirely inconsistent to turn a blind eye to the possibility that the Scottish Government’s own financial support for arms companies may be involved, whether directly or indirectly, in manufacture and supply chains.”

Amnesty has now written to Deputy First Minister Kate Forbes calling for an “urgent review” of Scottish Enterprise’s funding for arms companies selling components going directly or indirectly to states accused of international humanitarian law breaches, such as Israel and Saudi Arabia.

In its letter, Amnesty says the due diligence checks carried out are “inadequate” and risk failing to ensure Scotland upholds its international obligations.

Business minister Richard Lochhead has responded to the claims.

He told The BBC: “We work with these very important companies in Scotland, that play a big role in our economy, to diversify into non-military activities and production and also secure other commercial opportunities and perhaps some training as well.

“A lot of these companies take on apprentices and that’s supported sometimes as well by public funding.”

A spokeswoman for Scottish Enterprise added: “We make it clear to companies, through legally binding contracts, that our funding and support can only be used to deliver agreed projects in Scotland.

“None of the projects we support involve the manufacture of munitions or weaponry.

“We strongly refute any suggestion that our human rights checks do not adequately meet the published guidance.”

BAE Systems says it does not currently sell directly to the Israeli Government.

A spokesman for the company said it has invested the cash it received from Scottish Enterprise into a new shipbuilding academy as part of a wider investment in the River Clyde.

They added: “We welcome the additional funding from Scottish Enterprise which will support the ambition to attract, retain and develop the workforce of the future and both help secure the long-term viability of shipbuilding in Glasgow and provide an ongoing valued and significant contribution to the Scottish economy.

“We do not have operations or employees in Israel or Gaza and we do not currently sell military equipment directly to the government of Israel.”

A spokeswoman for ADS, the trade association for the UK’s aerospace, defence, security and space sectors, also said: “The decision to export capability - whether it’s related to defence or aerospace - is one that is strictly administered by the UK Government

“The UK defence sector has robust ethical standards and treats its responsibilities under UK law with the utmost seriousness.”

A spokesperson for the UK Department of Business and Trade said the UK Government has suspended export licences to Israel where there is “a clear risk that the items might be used to commit or facilitate serious violations of international humanitarian law.”