On 20 March 2007 the Belgian parliament unanimously approved a law banning investments in cluster munitions and anti-personnel mines. Two years later, the law is still being breached. Fortis, Dexia, Delta Lloyd, Citibank and Bank Degroof offer funds that invest in producers of cluster munitions, according to new research from Netwerk Vlaanderen. For this reason, peace organisations and concerned investors have sent a bailiff to Belgian finance minister Reynders. As long as he has not drawn up an essential implementing decree that makes the law operational, individuals and institutions run the risk of unwittingly breaching the law.

The Belgian law that was approved in 2007 is a world first: Belgium became the first country to place a ban on the investment in producers of cluster munitions and anti-personnel mines. The Belgian parliament gave a strong signal against the use of these cluster munitions and anti-personnel mines. These inhumane weapons create a large number of civilian victims, often years after the end of the war or armed conflict in which they have been used.

Two years later, the it appears that the law is not being respected. New research by Netwerk Vlaanderen shows that Fortis Bank, Dexia Bank, Delta Lloyd Bank, Citibank and Bank Degroof are amongst the financial institutions that offer investments in various producers of cluster munitions. Bank Degroof for example promotes the ‘Degroof Global International Flexible Fund’, which holds €454,254 in shares in General Dynamics. This US company produces essential components for the CBU-97 cluster munitions. Fortis and Dexia offer the Parvest Balanced (Euro) fund, which invests in cluster munitions producer Lockheed Martin. The companies offering these funds make illegal investments possible in Belgium.

The illegal investments make it clear that the implementation of the law leaves something to be desired. That is largely due to the lack of action from minister of finances Reynders. The law obliges the government to draw up a list of companies involved in the production of cluster munitions and anti-personnel mines. This list should have been published on 1st May 2008. Over one year later, there is no sign of the list. The way in which the law should be controlled, and by who, has still not been determined. The illegal investments that have been found make the results of this lack of follow-up painfully clear.

Despite the incomplete implementation of the law, all Belgian investors have been obliged to follow the law since 27th April 2007 and end investments in producers of cluster munitions and anti-personnel mines. Belgian investors rightly concerned: due to the incomplete implementation of the law, they run the risk of unwittingly breaking the law. A number of investors have decided to send a bailiff to minister Reynders to give him a notice of default. Tjeu Tijskens is one of them: “We demand that within 14 days a list is produced, and that the control and further implementation of the law will be arranged as swiftly as possible. We hope that this gives a clear signal: we want minister Reynders to stop these illegal investments.”