HUMAN rights abuses, arms sales and use of child labour are just some of the accusations levelled at companies supported by a £7billion pension fund created for local government employees in Essex.

The Essex Pension Fund in one of the largest local government pension schemes in the UK making investments on behalf of thousands of workers including council staff, teachers and charity workers.

An investigation has revealed the fund is helping to support some companies accused of unethical practices.

The fund includes £24.7million in Tata Consultancy and £5.9million in Tata Power.

Both are subsidiaries of an Indian multinational corporation called the Tata Group, which boasted in September last year of supplying military vehicles to Myanmar.

The announcement was made just four days before the United Nations (UN) accused the country’s military leaders of the “gravest” crimes against ethnic groups - including genocide. Tata Group was contacted for comment.

Almost £600,000 has also been invested in BAE Systems.

The British company supplies fighter jets to Saudi Arabia which may have been used in Yemen.

The UN warned the bombing has created “the worst famine in the world in 100 years” and BAE’s chairman has told shareholders he “does not know” if the company’s products were used in war crimes.

A spokesman for the company said: “BAE Systems provides defence equipment, training and support under government–to-government agreements between the United Kingdom and Kingdom of Saudi Arabia. As a global company, BAE Systems has operations in numerous countries, and it complies with all relevant export control laws and regulations in the countries in which it operates.”

Other investments include £560,341 in Glencore, previously accused of using child labour in mines in the Democratic Republic of Congo.

A spokesman for the company described the claims as “totally without merit”.

He added: "We prioritise respect for human rights everywhere that we operate. We uphold the human rights of our people and our communities, including vulnerable groups such as women, children, indigenous people and victims of conflict.”

A further £155,316 has also been invested in British American Tobacco. A spokesman said: “Many commentators would point at our history of delivering consistent returns to shareholders as a reason why our shares are considered attractive.

Calls for review of Essex Pension Fund

A PENSION fund for public sector workers dismissed concerns about “unethical” investments claiming “our aim is to ensure maximum return”.

Councillor Susan Barker, chairman of the Essex Pension Investment Steering Committee at Essex County Council, said: “The main responsibility of the Essex Pension Fund is to ensure it has sufficient funds available to pay pensions on behalf of more than 160,000 people, including employees at councils, schools, colleges, universities and the fire and rescue service.

 

“Our aim is to ensure maximum return on investment and as a fund, we recognise our responsibility for managing a range of risks faced by long-term investors, including those potentially posed by climate change.”

Southend Labour Councillor Matt Dent said: “I strongly urge the fund’s trustees to conduct a full audit of their investments and divest as a matter of urgency from any unethical investments.”

Independent Councillor Martin Terry added: “Where are our red lines these days, you have to have them and you cannot turn a blind eye to genocide.”

Deputy leader James Courtenay claimed Southend Council does not have a direct input adding “it is not down to us to dictate how a pension fund makes its investments”.

He said if the fund invested in companies that give a lower return it would mean council tax would go up or services would be cut.

Councillor David Burton-Sampson, deputy leader of Basildon Labour Group, said: “I would call on the trustees of the fund to review all areas of investment and ensure they are appropriate for that of a UK public body.

Council leader Andrew Baggott, said he would support an investigation into the investments if they involve companies accused of breaking the law but it would be going “too far” for councillors to demand it.

The fund also invests in fossil fuels.

Taxpayers funding weapon manufacturers

TAXPAYERS are unwittingly investing in companies criticised for how they make money.

When an employee who is a beneficiary of the fund pays a percentage of their salary into the fund that percentage is then matched by the employer.

In the case of this pension fund, that employer could be a council and the percentage they are paying into the fund is council money, which is also taxpayer money.

Andrew Smith, from Campaign Against Arms Trade, said: “Public money should be spent on the public good, it shouldn’t be used to fund and support companies that profit from war and conflict around the world.

“The impact that these companies have had around the world is devastating.

“Councils should set a precedent and ensure the Essex Pension Fund is invested positively and ethically.”

Martin Kerin, Labour Councillors for Thurrock, said: “I am surprised to learn of some of the companies that are invested in, with local taxpayers’ money.

“It is my view that senior council officers should investigate this, and look to ensure that Thurrock invests ethically.”

Luke Spillman, leader of the Thurrock Independents, added: “This information should be in the public domain. We need to hold them accountable if they are investing unethically or in a way that conflicts with the values and guidance that councils promote.” The Essex Pension Fund is part of the Local Government Pension Scheme. Members include those who work for councils and schools for example.