Flash Report

In Deep Water: More Walls to Strangle Gaza

December 2018

Introduction 2 Gaza in Context 2 Additional Barrier around Gaza: No Room to Breathe 3 Profiting from Strangulation 4 Corporate Complicity 5 Shikun & Binui Solel Boneh Infrastructures 5 Ariel Gabay Foundation Ltd 6 Olizki Infrastructure Ltd 6 Danya Cebus Smart Construction 7 Annex I: Olizki Infrastructure Ltd - Company Response 9 Annex II: Israel’s MoD - Freedom of Information Response 10 Introduction Israel has control over all transfer of goods to Gaza, including food, medicine, fuel, con- In this update, Who Profits investigates re- struction material and more, and can ban cent plans by the Israeli Ministry of Defense and restrict any transfer or access of goods at (IMOD) to build an additional hi-tech separa- any given time, thus keeping the Palestinians tion wall around the besieged Gaza Strip, to in Gaza in a perpetual humanitarian crisis. In be completed in 2019. The update will focus addition, the restrictions on movement- tar on the role of the private sector, exposing get people, who can be denied exit permits to some of the private corporations that amass leave the Strip for any purpose. These restric- profits as well as marketable experience from tions on Palestinian freedom of movement are strengthening the Israeli apparatus of con- enforced through two main checkpoints: Erez trol over Gazans. These include four Israeli (controlled by Israel), and Rafah (controlled by construction companies (Danya Cebus, Olizki Egypt). Another checkpoint, Kerem Shalom, is Infrastructure, Solel Boneh, and Ariel Gabay a commercial crossing fully controlled by Isra- Foundation) and the Israeli private manu- el. Along with these checkpoints, the new sep- facturer of weapons, Elbit Systems, a main aration wall forms an integral part of Israel’s provider to the IMOD. Research for this up- enclosure apparatus around Gaza, destroying date was conducted through desk research its economy and imprisoning its population. and Freedom of Information requests to the IMOD. Who Profits requested a response The economic strangulation of Gaza is rou- from all the companies profiled in this flash tinely complemented by Israeli military- at report. Only Olizki Infrastructure replied to tacks that result in the killing and injury of Who Profits’ letter; the response is annexed thousands of Palestinians each time, and to this report. All of the information on the the destruction of homes and hospitals. companies involved is on file with Who Prof- Since March 2018, Palestinian civilians par- its, and full company profiles can be found in ticipating in the “Great March of Return”2 the Annex section. have been met with lethal force by the Is- raeli occupying power, leading to killing of Gaza in Context more than 150 and the injury of thousands.3 Israeli and multinational companies are con- As a result of the Israeli occupation of Gaza in stantly involved in these attacks through the 1967, and the brutal blockade it has imposed provision of military equipment to the Israeli since 2007, two million Palestinians have been army. (See Who Profits’ profiles of Actuo- living under inhumane conditions, deprived of nix Motion Devices and DaJiang Innovation their most basic rights, including the rights to Technology). health, work and education, and subjected to repeated military assaults. While electricity and water are considered necessities for any Gisha-Legal Center for Freedom of Movement. www. human being, both are denied to Palestinians gisha.org May 2018. 2 The march started on March 30, 2018, when in the besieged Gaza, where Israel controls ev- Palestinians in Gaza called for their right of return to ery aspect of life. Gazans have access to only their Palestinian villages, and protested against the 4 hours of electricity per day, and 96% of the blockade on the strip. 3 1 “Gaza: Fears of Further Bloodshed as Israel water in the taps is undrinkable. Adopts ‘Zero Tolerance’ Policy”. Amnesty International www.amnesty.org 19 October 2018 1 “11 Essential Facts about the Gaza Strip”.

2 | In Deep Water Ariel Gabay equipment at the construction site. Photo: Who Profits. August 2018

Additional Barrier around Gaza: No (3 billion NIS), is considered to be the first of Room to Breathe its kind in the world, stretching over 60 kilo- meters and equipped with smart surveillance In addition to the various checkpoints, the systems.5 According to available publications, first separation wall around Gaza was built Israeli military officials have claimed that “the during the year 1994, and complemented in new technological measures form a step for- 2005 by an additional section that separates ward not only in defense capabilities but also Gaza from Egypt. In 2016, in order to reach in the ability to gather information on the en- a degree of maximum control and to level up emy on the Palestinian side.”6 the military system around Gaza, the IMOD announced its new plan to build an addition- The fact that this wall is the first of its kind al separation wall, this time deepening the in size and capabilities enables companies to impact and control underwater. The actual create new marketable technologies. This is construction of the wall started in 2017 and not the first time Gaza has been turned into is expected to be finished in 2019.4 This new a laboratory for the Israeli occupation and separation wall is composed of a six-meter different corporations. The first separation aboveground fence, a 10-meter underground wall built around Gaza became a prototype concrete wall, an underwater wall that is be- for other separation walls built by Israel, such ing constructed close to the border with Ga- as the separation wall in the West Bank that za.5 This barrier, estimated at 850 million USD fragments entire Palestinian communities, enables the annexation of more lands and

4 “Underground Barrier with Gaza to Extend to Sea”. The Jerusalem Post www.jpost.com, 10 August haaretz.com, 10 August 2017. 2017 6 “Expediting Construction Work on Strategic 5 “IDF Plans for an Obstacle in Gaza: Sensors Obstacle in Gaza”. (Hebrew) www.walla.co.il 16 June and an Underground Wall”. (Hebrew) Ha’aretz. www. 2018

3 | In Deep Water suffocates the Palestinians in the West Bank construction of the new separation wall: and East Jerusalem. As Israel gains power Solel Boneh, Ariel Gabay Foundation, Danya and control over the Palestinian population, Cebus and Olizki Infrastructure. Solel Boneh, different companies are taking advantage of the operational arm of the public company the new marketable opportunities to gener- Housing and Construction Corporation (Shi- ate more profits. One example is the tunnel kun & Binui), is involved in the construction detection system developed by Elbit Systems of the barrier through its subsidiary Ce- that is meant to intensify the siege on Gaza. mentcal, in a contract valued at 220 million In cooperation with the Israeli army, Elbit NIS. The company has also been involved in developed this technology and is urging the various construction projects in settlements Israeli government to grant permission to in the West Bank and East Jerusalem. An- export it. Another example is Elbit’s Hermes other involved company, Ariel Gabay, is a 900 drones,7 that were used during the as- private company that specializes in drilling sault on Gaza in 2014. According to press re- and infrastructure. The third company, Dan- ports, these drones were purchased by both ya Cebus, is involved in the construction of the Swiss government8 and the Brazilian gov- three sections of the wall, in a contract val- ernment, which uses the drones to suppress ued at 770 million NIS through its subsidiary street protests,9 (see Who Profit’s profile on Geo Danya. Danya Cebus, a subsidiary of the Elbit Systems). The “Iron Dome” anti-rocket publicly traded Africa Israel Investments Ltd, system, that enhances Israel’s military capa- is also involved in the occupation through bilities, was developed during the assault on construction works in settlements in the Gaza in 2012, and is exhibited in international West Bank and East Jerusalem. The fourth arms fairs for the purpose of finding potential company is Olizki Infrastructure, a private Is- customers.10 raeli company which specializes in civil and marine engineering, open pit mining, and Profiting from Strangulation quarrying. The company responded to our letter by denying some of the claims and Through the construction of the new wall and stating that “it is very proud of its engineer- with the help of local and multinational com- ing activity all over Israel, and sees great val- panies, Israel is intensifying its control over ue in the building of the State of Israel and Gaza and the Palestinian people and is leaving its economic advancement.”11 A Freedom no space for freedom. of Information response received from the Four Israeli companies are involved in the IMOD shows the involvement of a fifth con- struction company, Olenik Transportation, 7 “IAF declares Hermes 900 drone fully oper- Earth Works and Road Construction, in the ational”. Jeruslaem Post. www.jpost.com 24 August construction of the 170- meter long “break- 2017 water” (the underwater part of the wall).12 8 “Israeli company wins $200m Swiss tender for drones”, Times of Israel www.timesofisrael.com 27 November 2015 The technological equipment on the new wall, 9 “Israel’s Elbit System Wins Contract to Supply that will be attached both to the fence and Brazil With Hermes 900 Drone”. Ha’aretz. www. haaretz.com, 26 March 2014 10 “Massive Israeli Presence at Singapore 11 For the full response, see the annex at the Airshow 2018. Israel Defense”, Israel Defense www. end of this report. israeldefense.co.il 5 February 2018. 12 See response in the annex section.

4 | In Deep Water to the concrete wall for detecting any under- operates in the fields of infrastructure and ground movement, is manufactured by one construction. of the main Israeli military manufacturers of The Company was involved in construction defense electronics, the Israeli-based interna- works in Modiin Ilit, Ariel, Maaleh Adumim, tional company Elbit Systems. Elbit is deeply Ramat Shlomo and Har Homa settlements. complicit in the Israeli occupation. It has been In 2003, Solel Boneh was involved in the the main provider of the electronic detection construction of Road 90, one of Israel’s fence system to the separation wall in the oc- largest roads, which goes through the cupied West Bank, and as mentioned above, West Bank, including the Jordan Valley its Hermes 900 drone was used during the region. The subsidiary was also involved in attack on Gaza in 2014, and the Skylark mini- establishing the Merom Golan settlement, UAV has been used in military campaigns in the first settlement built in the occupied both Gaza and the West Bank. (See Who Prof- Syrian Golan in 1974. its’ update on Elbit Systems complicity in the In 2015, the company was involved in assault on Gaza 2014). building the National Police Academy in Photos published by the IMOD also reveal Beit Shemesh. In addition, in 1990, it was the involvement of international companies involved in the construction of the medical in providing equipment and heavy machinery center in Ramle prison. that are being used for the implementation In 2017, Solel Boneh won an IMOD of the project. In one of the photos, three tender to build sections of a wall and an bulldozers are documented at the construc- underground wall around the besieged Gaza tion site of the underwater wall: a bulldozer Strip. The contract is valued at 220 million manufactured by the multinational Japanese NIS. In 2018, it won another IMOD tender company, Hitachi; a bulldozer manufactured to re-build a military base (Emanuel Base) by the US multinational company Caterpillar; in the Naqab (Negev) region. The base is and a bulldozer manufactured by the South planned to be a high-tech “smart city” that African-based company Bell Equipment.13 An- serves 5,000 soldiers. other photo shows a bulldozer manufactured Ownership: The company is a fully owned by the South Korean multinational company, subsidiary of the publicly traded Israeli Hyundai.14 company Housing and Construction Corporation (Shikun & Binui) Corporate Complicity Directors: Yaron Krisi; Nir Zichlinski; Shnuel Shikun & Binui Solel Boneh Infrastructures Segev Amit; Raz Tal Peretz; Moshe Lahmani; Meir Dottan Profile:Shikun & Binui Solel Boneh Revenues: 711.8 million USD in 2017 Infrastructures is the operational arm of Shikun & Binui Ltd. in Israel. The company Traded in: Parent company publicly traded on Tel Aviv Stock Exchange 13 “Ministry of Defense Exposes: First Pictures Subsidiaries: Solel Boneh – Cementcal of of the Underwater Obstacle in Gaza”. (Hebrew) Mi- Shikun & Binui Group Ltd (100%) vzak live www.mivzaklive.co.il 5 August 2018 14 “Watch: The Underwater Obstacle Between Partners: the IMOD, the Israeli Ministry Israel and the Gaza Strip” YNET. www.ynet.co.il 5 Au- of Construction and Housing, the Israeli gust 2018

5 | In Deep Water National Roads Company, Derech Eretz in civil and marine engineering, open pit min- Global presence: The parent company and ing, environmental projects, quarrying, real its different subsidiaries are active in the estate development and land transportation. following countries: Hungary, Romania, In 2018, the company was contracted by the Serbia, Czech Republic, Uganda, Canada, IMOD to build an underground wall around Tanzania, Mozambique, Ivory Coast, the besieged Gaza Strip. Ghana, Togo, Nigeria, France, Switzerland, In 2012, the company’s machinery was Netherlands, Spain, Germany, Poland, USA, documented transferring quarried earth Guatemala, Columbia, Kenya from the tunneling of the Tel Aviv-Jerusalem Head office: 1A Hayarden, Airport City Fast Train (A1) to an illegal construction site 70100, Israel. near the Nili settlement in the occupied Website: www.sobindustry.shikunbinui.com West Bank. Mateh Binyamin regional council (a regional council of settlements in the oPt) Ariel Gabay Foundation Ltd and Israel Railways reached an agreement Profile:A private Israeli company that that the quarried earth would be used to specializes in drilling and infrastructure. level the valley below the Nili settlement and build a park. The designated site is a The company was contracted by the IMOD 30-dunam area, half of which is owned to carry out construction work for an by residents of the Palestinian village of underground wall being built around the Shabtin. besieged Gaza Strip. Ownership: Olizki Mining (1990) Ltd owns In June 2018, WP team sent an FOI request 99% of the shares. The remaining 1% is held to the IMOD, requesting the names of by Olizki Engineering Equipment Ltd. the companies that were contracted for the construction of the underground wall Directors: Ilan Olizki; Malaachi Olizki; Oren around Gaza. The ministry’s response Olizki; Erez Olizki; Aviram Amit included “Ariel Gabay Foundation Ltd” as Revenues: 225 million NIS in 2017 one of the contractors, as well as other Subsidiaries: Oniram Enterprise Ltd (50%); companies. O.Y. Fable Site Ltd (50%); Trodol Inversions Ownership: Ezra Gabay S.L; Base Foundation Ltd (87%); Olizki Revenues: 400 million NIS in 2017 Maintenance Ltd (50.2%) Subsidiaries: Ariel Gabay Drilling Ltd Partners: Clients include: The IMOD; Israel Land Authority; Shomron Regional Council; Partners: Israeli Ministry of Environmental Jewish National Fund; Israel’s Antiquities Protection Authority; Israel Railways. Global presence: Germany Global presence: Spain Head office: 21 Ha’arba’a St. Platinium Tower Head office: 10 Hagana St. Or Yehuda, Israel Tel-Aviv 64739, Israel Website: www.olizki.com Website: www.arielgabay.co.il Danya Cebus Smart Construction Olizki Infrastructure Ltd A Public Israeli construction and Profile:A private Israeli company specializing infrastructure company owned by Africa

6 | In Deep Water The entrance to the construction site of Danya Cebus. June 2018

Israel Investments. The company specializes involvement in development, construction or in residential, commercial and industrial building of real est ate in settlements in the buildings. West Bank.” However, the company soon after Profile:The company has been involved in received a 78 million NIS contract to construct several construction projects in settlements the C-Jerusalem project in the settlement in the occupied Palestinian territory. neighborhood of Gilo in East Jerusalem. In 1999, the company won a tender to Danya Cebus was the project’s contractor. build 72 housing units in the settlement The C-Jerusalem project includes 121 housing neighborhood of Har Homa in occupied East units and its construction was completed in Jerusalem. In 2004, the company won a 2014. tender to build 2,500 housing units in “Green In addition, the company is involved in Park” neighborhood, located in Modi’in Ilit building the “Nofei Hasela” neighborhood settlement. in the settlement of Ma’ale Adumim. In October 2010, in an official letter to Who The company is a contractor with the Profits, Danya Cebus’ parent company Africa- Israeli military and the IMOD. Its military Israel stated: “Neither the company nor any projects include the construction of “Kiryat of its subsidiaries and/or other companies Hatikshuv” in Be’er Sheva, which will be a controlled by the company are presently “smart” army base operated by the Israeli involved in or has any plans for future army. The subsidiary Alom-Danya is involved

7 | In Deep Water in conducting aluminum works in a military Revenues: 4,226 million NIS in 2017 base in the Naqab (Negev) area. Traded in: Parent company publicly traded on Company subsidiary Geo Danya is involved Tel Aviv Stock Exchange in the construction of three sections of an Subsidiaries: Cebus Rimon (100%), Africa underground wall around the besieged Gaza Israel Residences, GEO Danya (50%), Danya Strip under an IMOD contract valued at 770 Cebus Romania, Danya USA (100%), TMDC million NIS. Constructions (45%), Yuvalim Manpower, Another subsidiary, Cebus Rimon is involved Danya Manpower Ltd, Alom-Danya (100%) in the construction of a military training Partners: Clients include: the IMOD; city. This subsidiary was also involved in the Israeli President’s Office; the Israeli the construction of the Tel Aviv Jerusalem Population and Immigration Authority; Israel Fast Train (A1) route, which crosses into the Ministry of Environmental Protection. occupied West Bank in two sections. Global presence: Russia, Romania, USA, Ownership: The company is fully owned Thailand by Africa Israel Investments Ltd, an Israeli Head office: Yoni Netanyahu 1c company publicly traded on the Tel Aviv Stock Or Yehuda, Israel Exchange. Website: www.danya-cebus.co.il CEO: Ronen Ginzburg

8 | In Deep Water Annex I Olizki Infrastructure Ltd - Company Response (9 August 2018):

9 | In Deep Water Annex II Israel Minsitry of Defense - Response to Who Profits’ Freedom of Information request regarding contracts for underwater wall (9 December 2018)

10 | In Deep Water