Outing the Oligarchy - International Forum on Globalization

— INDIVIDUALS OF UNDUE INFLUENCE —
SAMMY OFER & FAMILY, ISRAEL
$10.3 BILLION [AS OF MARCH 2011]
Wealth: Sammy Ofer died on June 3, 2011 at <strong>the</strong> age of 89 80 and <strong>the</strong> future of his wealth is was uncertain at
<strong>the</strong> time of printing this report. At <strong>the</strong> time of his death, Ofer was considered <strong>the</strong> richest individual in Israel.
With his bro<strong>the</strong>r Yuli, he owned a global shipping empire and maintained interests in banking and real estate.
The Ofer family’s firms include cruise line Royal Caribbean, Israel Corp., which holds strategic stakes in
chemicals, Zim Shipping, Israel Chemicals, Oil Refineries Ltd, Bank Mizrahi-Tfahot, Tower Semiconductor
and Zodiac Maritime Agency Ltd. Ofer’s son Eyal runs <strong>the</strong> real estate and cruise line operations while his
bro<strong>the</strong>r Idan heads <strong>the</strong> shipping, technology, energy and chemicals company, Israel Corp. In May 2011, <strong>the</strong>
U.S. State Department sanctioned <strong>the</strong> Ofer Bro<strong>the</strong>rs Group for violating a trade ban by selling a tanker to
Iran. 81
Power Networks: In March 2008, Ofer donated £20 million to London’s National Maritime Museum at
Greenwich, as part of a £35 million program of expansion. He also donated £3.3 million to help complete <strong>the</strong>
restoration of <strong>the</strong> Cutty Sark. In November 2008, Queen Elizabeth named him an Honorary Knight
Commander of <strong>the</strong> Order of <strong>the</strong> British Empire (KBE) in recognition of his involvement with maritime
heritage in <strong>the</strong> United Kingdom.
Environment: Royal Caribbean, like all cruise ships, run on heavily polluting bunker fuel, a major source of
greenhouse gases. USA Today reports how Ofer’s cruise line, Royal Caribbean, “admitted in court it had
installed special pipes on some ships—removed before every scheduled Coast Guard inspection—to bypass
pollution-control devices that prevent oily dumping.” Royal Caribbean also confessed to dumping toxic
chemicals “used in dry-cleaning, photo processing and o<strong>the</strong>r activities.” A Coast Guard aerial-surveillance
video from 1994 clearly showed an oil slick trailing behind a Royal Caribbean cruise ship in <strong>the</strong> waters off
Puerto Rico. Faced with irrefutable evidence, Royal Caribbean’s lawyers argued that <strong>the</strong> U.S. lacked
jurisdiction to prosecute since Royal Caribbean is incorporated in Liberia. After a judge dismissed this
argument, Ofer’s firm pleaded guilty to 30 criminal charges in Miami, New York, Puerto Rico, Los Angeles,
<strong>the</strong> Virgin Islands and Alaska and agreed to pay $27 million in fines in 1998 and 1999. Royal Caribbean has
since instituted a “companywide Environmental Compliance Program” 82 and hands out environmental
awards—to its own ships. 83
Israel Corp.’s environmental score on CSR is 38; Royal Caribbean’s score is 43. Both companies are absent
from <strong>the</strong> Dow Jones Sustainability Index.
- 27 -