Divestment of State Assets in Sudan and Iran
Updated: May 15, 2008
Divestment of State Assets in Sudan and Iran
The Wisconsin Jewish Conference supports legislation that would require the State of Wisconsin Investment Board (SWIB) to divest assets invested in companies that are currently conducting business in the Sudan or Iran, as well as preventing any investments in these companies in the future. The goal of this effort is to apply financial pressure on the Sudan and Iran to end behavior seen as violating international standards, such as the genocide in the Darfur region of Sudan and Iran’s support of terrorism.
You can view an Wisconsin Jewish Chronicle article on WJC’s position on this issue.
Divestment in Wisconsin
Companion legislation has been introduced in the Wisconsin Assembly and Senate that would require the State of Wisconsin Investment Board (SWIB) to divest assets in certain companies that do business in Sudan. The bill would affect companies that: 1) have business operations involving contracts with, or the provision of supplies or services to, the government of Sudan (not including the regional government of southern Sudan) or entities related to the government of Sudan if more than 10 percent of the company’s revenues or assets linked to Sudan involve oil−related activities, mineral extraction activities, or power production activities; 2) is complicit in the Darfur genocide; or 3) supplies military equipment within Sudan.
The Legislation is co-authored by Representative Fred Kessler (D-Milwaukee) and Senator Sheila Harsdorf (R-River Falls). Unfortunately, neither bill gained any traction this session, and they both died in committee.
Meanwhile, the State Senate has passed a resolution authored by Senator Spencer Coggs (D-Milwaukee) regarding divestment in companies doing business in Sudan. The proposal (Senate Resolution 28) is advisory only. It urges the State of Wisconsin Investment Board (SWIB) to “aggressively petition companies involved in the oil, power, mining, and defense sectors of Sudan to cease ongoing business operations within Sudan.” It also urges SWIB to “exclude companies from its portfolio that fail to respond positively to its request to cease ongoing business operations within Sudan.”
Assembly Bill 124 history and bill draft: http://www.legis.state.wi.us/2007/data/AB124hst.html
Senate Bill 57 history and bill draft:
http://www.legis.state.wi.us/2007/data/SB57hst.html
Senate Resolution 28 history and bill draft:
http://www.legis.state.wi.us/2007/data/SR28hst.html
Regarding Iran, no bill has been introduced yet. However, the WJC is working to have a bill introduced next session.
Divestment Nationally
Congress is considering separate bills dealing with divestment in Sudan and Iran. However, the Sudan effort is opposed by the Bush administration which sees them as interfering with presidential foreign policy.
Meanwhile, 21 states have initiated some form of divestment from companies who do business with, or in, Sudan. In early November, Massachusetts became the 21st state to do so and will divest $54 million in eight companies said to support Sudan.
In early January 2008, Governor Jon Corzine signed a law that prohibits New Jersey’s pension fund (which is the nation’s ninth largest) from investing in companies with active business in Iran. American companies are already barred from such dealings, but some have foreign subsidiaries that operate in Iran. New Jersey joins California, Illinois and Florida with such legislation, while more than a dozen other states are considering it. Opposition to the Iran-related measures is stronger than for the Darfur legislation due to the larger amounts of holdings involved.