LANSING – Legislation sponsored by State Representative Alma Wheeler Smith (D-Salem) to prohibit state pension funds from being invested in companies that have operations in war-torn Sudan is on its way to Gov. Jennifer Granholm for action. The governor has indicated that she will sign the legislation. The bill, when enrolled as a Public Act, will have immediate effect.
This legislation is the result of a deep grassroots effort that began with a meeting in Ypsilanti. "The divestment bill makes two things clear: very determined citizens can effect change and Michigan will not support a government that systematically murders innocent civilians," Smith said. "If the state is investing in companies that continue conducting business with Sudan after a written notice to end their relations, this law will provide a timetable for divestment. We will not use our pensions to support the administration of Sudan."
Smith's plan, part of a package that requires divestment from countries which deal in terrorism, targets mostly "for-profit" companies with specified ties to Sudan. The legislation does not include "social development companies" that provide humanitarian aid, goods or services that include medicine, or medical equipment and educational opportunities.
The bill stipulates that any company in the state's seven pension portfolios that does business in Sudan must be identified by the Office of Retirement Services within 90 days of the bill's effective date. A company determined to be doing business with Sudan will be sent written notification requesting clarification of its business dealings and will be asked to stop its Sudan-related activities if the business activity supports the government's ability to perpetuate terror against its people.
If a company continues its operations in Sudan, state pension funds will begin to be divested within 90 days after the notice is sent. At least 50 percent of the assets will be removed within nine months after the company's most recent appearance on the scrutinized companies list; 100 percent of the assets will be removed within 15 months after the company's appearance on the list. The divestment timeline is designed to give a company the opportunity to change its business practices within Sudan.
"The Sudanese government needs to know that what they've been doing is unacceptable," Smith said. "The genocide that has been going on in Sudan is intolerable and Michigan will not condone that behavior. We will not allow taxpayer dollars to be funneled into the pockets of a nation intent on killing its own citizens."