Amnesty International has accused the Scottish government of “turning a blind eye” to the risk of being part of the supply chain of weapons that could be used in the war in Gaza.
Amnesty says checks on arms companies before they receive corporate subsidies do not take into account where some products might end up.
It claims this is “contrary” to Scottish Government demands that Britain stop selling arms to Israel.
The Scottish Government said no subsidies were given for weapons production in Scotland, and that the funding supported research, training and apprenticeships.
And Scottish Enterprise, the government’s economic development agency, strongly denied any suggestion that human rights controls are inadequate.
The companies involved say the UK defense sector has robust and ethical standards and the UK government manages export licenses through a “rigorous and transparent” system.
Amnesty International has filed freedom of information requests to determine what checks were carried out before the grants were awarded. They shared it with BBC News.
Some export licenses to Israel have been suspended [Reuters]
The FOIs show that no company to date has failed Scottish Enterprise’s human rights due diligence checks.
They show that the level of checks is based on the amount of money requested, not what the company sells or sells to.
There are three levels: from £100,000 to £2 million, from £2 million to £5 million, and then above £5 million. Grants under £100,000 are not subject to human rights checks.
The papers also reveal that in the past 18 months, Scottish Enterprise has provided grants worth hundreds of thousands of pounds to defense companies including Leonardo, Raytheon and BAE Systems, all of which have or have had British export licenses to sell to Israel in the same period. .
BAE Systems Surface Ships LTD received £9,600 from Scottish Enterprise 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.
The companies employ thousands of people in Scotland.
Scottish Enterprise says its human rights due diligence investigations include a detailed examination of a company’s history and profile by searching and assessing publicly available information.
Amnesty says money from Scottish Enterprise could directly or indirectly enter the supply chain and send weapons for use in the conflict in Gaza and other countries.
They say the weapons supply chain is complex, with some companies selling parts to one country – such as the US – so they can be assembled on planes and resold to other countries.
In May, the International Criminal Court accused Israeli and Hamas leaders of war crimes and requested arrest warrants. A United Nations report also accused Israel of crimes against humanity.
Last month, the British government said it was suspending 30 of 350 export licenses to Israel over concerns that they could be used in breach of international humanitarian law.
The three defense companies that received Scottish Enterprise grants – Leonardo, Raytheon and BAE Systems – did not clarify whether their licenses were among those suspended last month.
BAE Systems says it does not currently sell directly to the government of Israel. Leonardo and Raytheon made no comment.
‘Completely inconsistent’
Earlier this year, then Prime Minister Humza Yousaf called for an immediate halt to British arms sales to Israel, warning that Britain was “in danger of being complicit in the killing of innocent civilians”. Last month, John Swinney called for an immediate ceasefire in Israel.
Amnesty says Scottish ministers are “right to alert the UK government to the inherent risk of complicity in such crimes by Israel if the country continues to allow arms exports.
“However, it is completely inconsistent to turn a blind eye to the possibility that the Scottish Government’s own financial support to arms companies could be involved, directly or indirectly, in production and supply chains.”
The FOIs also show that the PCS union – which represents civil servants within Scottish Enterprise – raised concerns earlier this year that their members were “possibly complicit” in war crimes if Israel was found to have broken international law.
An email from the PCS said the care was gaining ‘traction’ among its members and asked whether they would be affected.
In response, the Scottish Government said it believed it was “established business as usual” for Scottish Enterprise and it could be argued that staff would not be affected.
Humza Yousaf called for an immediate halt to British arms sales to Israel [PA Media]
Amnesty has written to Chancellor of the Exchequer Kate Forbes calling for an “urgent review” of Scottish Enterprise funding for arms companies that sell components or parts that go directly or indirectly to states accused of breaches of international humanitarian law, including Israel and Saudi Arabia.
And it says the due diligence checks carried out before Scottish government grants are awarded are “inadequate” and pose a risk that Scotland will fail to meet its international obligations.
Business Secretary Richard Lochhead told BBC Scotland News that no government funding goes towards ammunition production in Scotland.
“We are working with these very important companies in Scotland, who play a huge role in our economy, to diversify into non-military activities and manufacturing and also to secure other commercial opportunities and perhaps some training as well.
“Many of these companies take on apprentices and that is sometimes also supported by public funding.”
Scottish Enterprise said supporting economic growth and creating quality jobs are at the heart of what it does and that it takes monitoring human rights very seriously.
A spokeswoman said: “We make it clear to businesses, 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 ammunition or weapons.
“We strongly refute any suggestion that our human rights controls do not adequately comply with published guidance.”
‘Appreciated and significant contribution’
A spokesperson for BAE Systems said it had invested in a new applied shipbuilding academy as part of a wider £300 million commitment to shipbuilding on the Clyde.
“We welcome the additional funding from Scottish Enterprise, which will support the ambition to attract, retain and develop the workforce of the future and will both help secure the long-term viability of shipbuilding in Glasgow and provide a continued valued and will make a significant contribution to the Scottish economy. .
“We have no operations or employees in Israel or Gaza and we do not currently sell military equipment directly to the government of Israel.”
ADS is the trade association for the UK aerospace, defence, security and space sectors.
A spokeswoman for ADS said Scotland’s defense industry played “a vital role”, including “critical contributions to maintaining existing capabilities and our nuclear deterrent”.
“The decision to export capabilities – whether defense or space – is strictly managed by the UK government,” she added.
“The UK defense 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 it had suspended certain export licenses to Israel because there was “a clear risk that the goods could be used to commit or facilitate serious breaches of international humanitarian law”.
