Who is behind the divestment bill?
An objective analysis of this issue indicates that:
- Allied Jewish Federation of Colorado is pursuing Colorado Iran divestmt bill with assistance from the Center for Security Policy, a neo-conservative group.
- At the national level, Benjamin Netanyahu, former prime minister of Israel; Missouri State Treasurer Sarah Steelman, and the Center for Security Policy's Divest Terror project (and its partner, the Conflict Securities Advisory Group), The Israel Project, and John Hagee's evangelical "Christians United for Israel", are pushing for divestment.
- Lately, legislators who believe Iran is supplying weapons to Iraqi forces that injure our soldiers have advocated for the bill
What is divestment?
It is the selling shares (usually owned by a pension fund) in a company that does business in a particular industry or country and refusing to invest in that company until the issue causing the divestment has been resolved.
Divestment has been used by various state legislatures to make a political statement and to have an economic impact on that company so it will no longer continue its operation which is displeasing the legislators.
Divestment can be for social or political reasons, e.g. to end apartheid in South Africa, to end terrorist bombings in Northern Ireland, to end persecution in Myanmar, to end genocide in Sudan, to end terrorism in Iran or Syria or other locations, to force Israel to end injustice to Palestinians, to end testing on animals in making cosmetics, to destroy the tobacco industry, and the list goes on to whatever cause you have.
The Colorado State legislature has only enacted a divestment law one time...in 2007. That law requires several public entities (PERA, FPPA, RTD, DPS Retirement System, CCOERA, etc.) to divest from certain companies that do business in Sudan.
The PERA Board of Trustees supported this divestment law despite years opposing investments based on social or political reasons. FOP did not take a position on this legislation, but many individual members were opposed to it.
What is the next area of divestment?
Several Colorado legislators are suggesting a law to force PERA to divest from companies that do business in Iran.
What is Friends of PERA’s position?
FOP is opposed to this law and any law that requires PERA to divest for political or social reasons.
Why?
1. Divestment is ineffective.
There is no proof that divestment actually works. Proponents will cite the end of apartheid in South Africa but divestment was one of numerous economic actions taken. There is no report that supports that divestment was the actual cause; just a lot of speculation.
2. PERA’s shares in those companies are minimal.
PERA only owns a small amount in any particular company; selling its shares to another pension fund or individual does nothing to encourage Iran to change its course of action or to encourage the company to leave Iran – if that is the goal.
If companies leaving Iran is the goal, other types of actual would be much more effective.
- List the companies and products of companies that operate in Iran and in Colorado and encourage a boycott of those companies.
- Require companies that contract with any government entity in Colorado to certify it or its parent or subsidiary companies do not do business in Iran.
3. Selling shares prohibits PERA from investing in global companies with good rates of return. The international companies that operate in Iran may only have one or two percent of their total business there and 98 percent in other countries, including the U.S.
4. What next? This is the “slippery slope” theory at work! The Center for Security Policy supports divestment from Iran, Syria, Sudan, and North Korea. See the list mentioned earlier.
5. PERA’s funds are held in trust for the members of PERA. They are not owned by the taxpayer or the State Legislature. The PERA Trustees should not be forced by the Legislature to make specific investment decisions. No one else in the state is. The State has given the fiduciary responsibility to the Board of Trustees and they should be making the investment decisions as fiduciaries.
6. Selling and loss of potential gain is costly. It will cost millions of dollars to research the companies, sell the investments and purchase new investments. There is also the lost earnings on these companies (which include Shell and Total gasoline companies).
7. Divestment is interfering in foreign policy which should be handled by the federal government. The National Foreign Trade Council opposes divestment. An article on Oct. 30, 2007, states that the State Department opposes divestment because it harms relationships with friendly countries in which these companies are domiciled, e.g. France, Brazil, the Netherlands, etc.
What can I do?
Contact your state legislators and tell them to oppose this bill. Tell your friends and family members to do the same.
Who is behind this bill?
An objective analysis of this issue indicates that:
- Allied Jewish Federation of Colorado is pursuing Colorado Iran divestmt bill with assistance from the Center for Security Policy, a neo-conservative group.
- At the national level, Benjamin Netanyahu, former prime minister of Israel; Missouri State Treasurer Sarah Steelman, and the Center for Security Policy's Divest Terror project (and its partner, the Conflict Securities Advisory Group), The Israel Project, and John Hagee's evangelical "Christians United for Israel", are pushing for divestment.
- More..
