The Ireland Strategic Investment Fund (ISIF) has divested itself of all Israeli bonds in the past number of weeks, Minister for Finance Paschal Donohoe has told the Dáil.
He said the board of ISIF was independent of Government when it came to investment decisions.
He was replying to Sinn Féin Spokesperson on Finance Pearse Doherty, who said it was shocking and disgraceful that ISIF had held Israeli bonds "when genocide was taking place last year".
The Donegal TD said Israel did not hide what its bonds were on sale for - supporting its war in Gaza - and both ISIF and the Government knew that.
He asserted that Mr Donohoe could not wash his hands of responsibility given he was the Minister for Finance and ISIF reported to his department.
Mr Doherty accused the Government of being complicit in Israeli genocide, a charge Minister Donohoe flatly rejected.
ISIF is managed and controlled by the National Treasury Management Agency and describes itself as "a sovereign development fund with a unique mandate to invest on a commercial basis to support economic activity and employment in Ireland".