Amnesty criticises ministers for arms firm funding

Amnesty International has accused the Scottish government of turning “a blind eye” to the risk of being part of the supply chain of arms which could be used in the war in Gaza.

Amnesty says the checks done on arms companies before giving them business grants fail to take account of where some of the products may end up.

It claims this is “inconsistent” with the Scottish government’s demands that the UK should stop selling arms to Israel.

The Scottish government said no grants were given for the manufacture of arms 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 its human rights checks were not adequate.

The companies involved say the UK defence sector has robust and ethical standards and that the UK government administers export licences through a “rigorous and transparent” system.

Amnesty International submitted Freedom of Information requests to establish what checks were carried out before the grants were awarded. They have shared these with BBC news.

The FOIs reveal that to date no company has failed Scottish Enterprise’s human rights due diligence checks.

They show that the level of checks is based on the amount of money being requested, not what the company sells or where it sells to.

There are three levels – from £100,000 to £2m, from £2m to £5m, and then above £5m. Grants below £100,000 are not subject to human rights checks.

The papers also show that in the past 18 months Scottish Enterprise has provided grants worth hundreds of thousands of pounds to defence companies including Leonardo, Raytheon and BAE Systems, who all have or have had UK export licences to sell to Israel in the same time 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 checks involve a detailed examination of a company’s history and profile by searching and reviewing publicly available information.

Amnesty says money from Scottish Enterprise could directly or indirectly find its way into the supply chain sending weapons for use in the conflict in Gaza and other countries.

They say the supply chain of arms is complex, with some companies selling component parts to one country - such as the US - for them to be assembled into planes and sold on to others.

In May the International Criminal Court accused Israeli and Hamas leaders of war crimes and applied for arrest warrants. A United Nations report also accused Israel of crimes against humanity.

Last month the UK government said it was suspending 30 of the 350 export licenses to Israel because of concerns about the risk they may be used in violation of international humanitarian law.

The three defence companies which received Scottish Enterprise grants - Leonardo, Raytheon and BAE Systems – did not clarify whether their licences were among those suspended last month.

BAE Systems says it does not currently sell directly to the government of Israel. Leonardo and Raytheon did not comment.

Earlier this year, the then first minister Humza Yousaf called for an immediate end to UK arms sales to Israel, warning that the UK 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 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.”

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

An email from the PCS said the concern was gaining “traction” among its members and asked if they would be affected.

In response, the Scottish government said it believed it was “established business as usual” for Scottish Enterprise and that it could be argued that staff would not be affected.

Amnesty has written to Finance Secretary Kate Forbes calling for an “urgent review” of Scottish Enterprise’s funding for arms companies selling components or parts going directly or indirectly to states accused of international humanitarian law breaches, including Israel and Saudi Arabia.

And it says the due diligence checks carried out before awarding Scottish government grants are “inadequate” and risk failing to ensure Scotland upholds its international obligations.

Business Minister Richard Lochhead told BBC Scotland News that no public funding goes towards the manufacturing of munitions in Scotland.

"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.”

Scottish Enterprise said supporting economic growth and creating high-value jobs was at the heart of what it does and that it took human rights checks very seriously.

A spokeswoman said: “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.”

A BAE Systems spokesperson said it had invested in a new applied shipbuilding academy as part of a wider £300m 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 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.”

ADS is the trade association for the UK’s aerospace, defence, security and space sectors.

A spokeswoman for ADS said Scotland's defence industry played “a critical role”- including “vital contributions to maintaining existing capability and our nuclear deterrent”.

“The decision to export capability - whether it’s related to defence or aerospace - is one that is strictly administered by the UK government,” she added.

“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 it had suspended certain export licences to Israel where there was “a clear risk that the items might be used to commit or facilitate serious violations international humanitarian law”.