A bomb hits the building housing various international media, including The Associated Press, in Gaza City. AP
A bomb hits the building housing various international media, including The Associated Press, in Gaza City. AP
A bomb hits the building housing various international media, including The Associated Press, in Gaza City. AP
A bomb hits the building housing various international media, including The Associated Press, in Gaza City. AP

Israeli military chief says there is no 'gram of regret' for Gaza press bureau bombing


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Israel's defence minister has distanced himself from comments made by his military chief after Israel bombed a Gaza Strip building housing an Associated Press office and other news outlets, saying the remarks were not meant to be taken literally.

In an article published on the website of Channel 12 news at the weekend, the military chief of staff, Lt Gen Aviv Kohavi, was quoted as saying that "the building was destroyed justly" and he did not have a "gram of regret".

The article claimed that the Hamas militant group that rules Gaza used various floors of the Jalaa Tower for “significant electronic warfare” meant to disrupt Israeli air force GPS communications.

It said Lt Gen Kohavi had told "a foreign source" that AP journalists drank coffee each morning in a cafeteria in the building's entrance with Hamas electronics experts, whether they knew it or not.

The AP called the comments "patently false," noting that "there was not even a cafeteria in the building".

Asked about Lt Gen Kohavi’s comments, Defence Minister Benny Gantz told foreign journalists on Monday that the military chief was only speaking in figurative terms.

“When the chief of staff talked about it, he was trying to portray the atmosphere, not the actual aspects,” Mr Gantz said.

Mr Gantz again alleged that "there was Hamas infrastructure in offices that operated from this building".

Asked to respond to Mr Gantz’s comments, the military spokesman’s office also said Lt Gen Kohavi’s statements were meant to be figurative.

“It was never claimed that AP journalists were knowingly interacting with Hamas personnel. On the contrary, due to the nature of Hamas’s activities, AP journalists had no means of knowing that Hamas personnel were in the building,” it said.

“The chief of the general staff explained the possible circumstances of such an encounter where the terrorist organisation Hamas embeds itself within the civilian population and uses civilian buildings for military purposes,” it said.

The Israeli army gave occupants of the building one hour to evacuate before the May 15 airstrike. No one was injured, but the high-rise was flattened into a pile of rubble.

The AP has said it had no indication of a Hamas presence in the building and was never warned of any possible presence before that day. It has called for an independent investigation and urged Israel to make public its intelligence.

Mr Gantz said Israel had shared its intelligence with the US government. But he indicated that Israel had no intention of making the information public, saying it did not want to divulge its sources.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”