An Israeli artillery unit fires towards Gaza on December 11 from southern Israel. Getty
An Israeli artillery unit fires towards Gaza on December 11 from southern Israel. Getty
An Israeli artillery unit fires towards Gaza on December 11 from southern Israel. Getty
An Israeli artillery unit fires towards Gaza on December 11 from southern Israel. Getty

What is the Leahy Law and why does its sponsor say it's been breached in Gaza?


Ellie Sennett
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Shortly after Israel killed seven World Central Kitchen workers in a marked aid convoy in Gaza, US National Security Council spokesman John Kirby said the State Department “has not found any incidents that the Israelis have violated international humanitarian law”.

The assertion is crucial for the US, as under its own rules, most notably the Leahy Law, it cannot supply arms to foreign military units that are breaking humanitarian law.

The US has long stated that its support of Israel is “ironclad” and refused to put any conditions on how American bombs are used in Gaza.

Local health authorities say more than 34,600 people have been killed there since the October 7 Hamas attacks on Israel, in which 1,200 people died.

But that position may now be changing. Axios reported at the weekend that Washington has stopped a planned ammunition shipment to its ally.

The White House and State Department declined to comment on the report.

The Leahy Law, or Leahy Amendments, prohibit US assistance to foreign security forces when there is credible information that a unit has committed a “gross violation of human rights”.

One statute is applicable to the State Department and another to the Department of Defence.

That emphasis on units is distinct, “because it does not require a decision to cut off aid to an entire country – which the US government is often reluctant to do", Amnesty International said.

"Rather, it tackles the challenge by prohibiting aid solely from the offending units."

President Joe Biden's Democratic Party has repeatedly expressed concern that Israel is breaking international law in Gaza.

The State Department Leahy Law also includes an exception allowing assistance to a unit to resume if the Secretary of State determines and reports to Congress that the government of the country is taking effective steps to bring those responsible to justice.

The law is named after former Democratic senator Patrick Leahy, who was its chief sponsor.

The amendments that became the Leahy Law date back to appropriations provisions he led in the 1990s during efforts to control US military aid to Colombia.

Washington at the time was assisting with anti-drug trafficking work and crackdowns on leftist insurgents there.

Senator Patrick Leahy listens during a committee hearing on Capitol Hill in Washington. Getty Images / AFP
Senator Patrick Leahy listens during a committee hearing on Capitol Hill in Washington. Getty Images / AFP

The law was used during former president Barack Obama's administration to cut military aid to Pakistani units as punishment for human rights abuses, including torture and extrajudicial executions.

Now retired, Mr Leahy has voiced concerns that US support for Israel's war in Gaza has breached his namesake policy.

“On this one, I think that there are violations of the Leahy Law,” he recently told Vermont local media.

In implementing the Leahy Law, US government considers torture, extrajudicial killing, forced disappearance and rape under colour of law to be gross violations of human rights.

Incidents are examined on a fact-specific basis, according to the State Department.

“I’m not in the Senate. I can’t fight about it … I’m not the chair of the committee," Mr Leahy said.

"But everybody who’s asked me in the international press, the national press, I’ve said to them: I think there are violations of the Leahy Law."

Last week, Washington accused five Israeli military units of committing “gross violations of human rights” in the occupied West Bank before October 7, although it has avoided addressing those concerns about conduct in Gaza.

Washington gives Israel about $3.3 billion of foreign military financing every year, which is subject to the Leahy Law.

Arms sales are not subject to the Leahy Law because they are considered to be commercial transactions, not assistance.

The State Department in 2020 set up a special forum for Israel to try to identify units that have committed gross violations of human rights. To date, there have been no such findings.

The Leahy Law's existence has been used to check some progressive Democratic pushes against strengthening oversight on potential Israeli human rights abuses since the war in Gaza began.

Earlier on in the war, those efforts materialised into the Van Hollen amendment, which would require “weapons received by any country under the proposed national security supplemental [be] used in accordance with US law, international humanitarian law and the law of armed conflict”.

But Senate foreign relations committee chairman Ben Cardin cast doubt on the effort.

Mr Cardin told The National in December that he “does not believe it's necessary to condition aid further than was already conditioned, as far as US military assistance is concerned”.

“I certainly support the Leahy principles," he said. "We'd be very interested in having a further review on [their application]."

After the deaths of the World Central Kitchen aid workers, one of whom was a dual US-Canadian citizen, new questions were asked about Israel's compliance with international law.

Democratic Senator Chris Coons, an ally of Mr Biden, endorsed Washington placing conditions on aid to Israel “if they continue with large-scale military operations in Rafah without making any provisions for civilians”.

“I've never said that before; I've never been here before,” Mr Coons said.

“The tactics by which the current Prime Minister [Benjamin Netanyahu] is making these decisions don't reflect the best values of Israel or the United States.”

In a letter to Mr Biden, senior Democratic members of Congress “strongly urged” that he reconsider his recent decision to authorise a new arms package to Israel and to “withhold this and any future offensive arms transfers until a full investigation into the air strike is completed”.

Signatories included establishment Democrat and former House speaker Nancy Pelosi, who had previously accused pro-ceasefire demonstrators of being loyal to China and Russia.

“If this strike is found to have violated US or international law, we urge you to continue withholding these transfers until those responsible are held accountable,” the letter continued.

“We also urge you to withhold these transfers if Israel fails to sufficiently mitigate harm to innocent civilians in Gaza.”

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

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.”

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Major honours

ARSENAL

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SPAIN

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Updated: May 06, 2024, 9:59 PM