Topeka — State lawmakers Wednesday refused to push for selling off approximately $43.5 million in Kansas public pension investments in Sudan, which the U.S. government says is guilty of genocide.
Several members of the House-Senate committee on pensions said they feared divesting in Sudan would set a precedent that could lead to divestment of holdings in a number of other countries.
"This gets to be a big thing if you start doing it," said state Rep. John Edmonds, R-Great Bend.
"It may be Sudan today, but who knows who it could be next year," said Senate President Steve Morris, R-Hugoton.
Sonny Scroggins, a human rights activist from Topeka, said he was disappointed.
"They (lawmakers) are supposed to be the conscience of the people," Scroggins said as he held an anti-Sudan protest sign outside the Capitol. "They worry about big business and money at the expense of life."
The U.S. has accused the Sudanese government of genocide against ethnic African tribes in fighting that has left 200,000 dead and 2.5 million homeless since 2003.
Despite the committee's rejection of divestment, the issue isn't dead in the Kansas Statehouse.
A proposal is expected to be filed during the legislative session that starts in January that would require the state to sell off investments in Sudan that are made through the Kansas Public Employees Retirement System.
KPERS administers retirement plans for state and local public employees. It has assets of $12.2 billion and 250,000 members, including all state employees and school teachers.
More information
Glenn Deck, executive director of KPERS, said the retirement system's investment in the African nation, is about $43.5 million, which is about one-third of 1 percent of KPERS' portfolio.
KPERS doesn't have any direct holdings in Sudan or any investments in Sudanese companies, but it does hold securities of companies that have business connections to Sudan, he said.
"One of the most difficult aspects of this issue is determining what constitutes a business connection and the significance of that connection to the Sudanese government's revenues," he said.
Deck said selling the investments would have little effect on the overall performance of KPERS investments.
But it would cost from several hundred thousands dollars to several million dollars to liquidate and reinvest, he said.
Six states have divested from Sudan, and 20 others are considering it, he said.
Comments
LJWorld.com doesn’t necessarily condone the comments here, nor does it review every post. Read our full policy. Also, read about banned accounts and harassing comments.
Baille (anonymous) says…
We should divest in Sudan. There shouldn't even be an argument. Steve Morris' and John Edmonds' comments are shameful.
cutny (anonymous) says…
Despicable. Hey, I heard there's a good deal on some Nazi-looted artwork at Christie's this week. Maybe you guys would want to look into it.
werekoala (anonymous) says…
"It may be Sudan today, but who knows who it could be next year," said Senate President Steve Morris, R-Hugoton.
In other news, Senate President Steve Morris (R-etarded) has also come out against putting convicted felons in prison, saying, "It may be criminals today, but who knows who it could be next year".
Indeed, Steve-o! I too am worried that an embargo against one genocidal nation might lead to similar embargos of other genocidal nations. We must act quickly to stop this idea, for if it were to pass, it would have little or no effect other than ceasing to support genocide!
====================================
Oh, and as if this guy wasn't enough of a hypocrite, here's an quote from him Jan 11, 2005 (formal response to Sebelius' State of the State speech):
"The tragedies across the globe . . . bloody civil war in the Sudan . . . stand to remind us of the many blessings in our own lives. . . . The cries of the survivors of these tragedies call us to action."
Except, of course, when "action" would mean actually doing something about the problem other than making sound bites.
fletch (anonymous) says…
"It may be Sudan today, but who knows who it could be next year," said Senate President Steve Morris, R-Hugoton.
Hopefully it will be the next country that starts committing genocide against its people. This is the lame BS conservative argument that was used against giving black's the same rights as white people. This year we let them drink out of the same water fountain, next year they'll want to vote!
Raider (anonymous) says…
"KPERS doesn't have any direct holdings in Sudan or any investments in Sudanese companies, but it does hold securities of companies that have business connections to Sudan, he said."
Nuff said. KS doesn't have any holdings in Sudan or holdings in Sudanese companies. What's the big deal here? This is just ridiculous. Don't we have bigger problems for our legistlature to tackle besides this?
Mkh (anonymous) says…
I love the rational they gave for not divesting the funds. Well if we did that people might want us to divest all the blood money!! We can't do that!
"Posted by Irish_Prince (anonymous) on November 16, 2006 at 10:29 a.m. (Suggest removal)
Well this is certainly the kind of thing that will give the KU students something to protest about...won't it?"
Yeah I wish Irish Prince! I think the only thing KU students would get off their butt to protest today would be if Abercrombie and Fitch, the Gap, and Brothers all closed down. Then you'd see the youth rise up with a fury!
fonz73 (anonymous) says…
boooooooooooo!!!!!!!
Sigmund (anonymous) says…
How much clearer can it be? "KPERS doesn't have any direct holdings in Sudan or any investments in Sudanese companies..." Unless you are a beneficiary of the KPERS retirement plan (state employee or school teacher), who are you to tell them how to invest THEIR money? If it's not your money its really none of your concern. Make you a deal, don't tell them how they should invest and they won't tell you how to invest.
Baille (anonymous) says…
KPERS is the Kansas Public Employees Retirment System. Is it funded in part with my tax dollars? If so, I have every right to tell them how to invest the funds. If not, I have every right to tell them how they should invest the funds although I think that would be rude. In any case, public funds are used so it is really all of our concern how it is invested.
Oh and you only quoted part of the statement. Consequently, your assertion was misleading. The missing piece: "...but it does hold securities of companies that have business connections to Sudan, he said."
While figuring out what may constitute a connection may be difficult, "Glenn Deck, executive director of KPERS, said the retirement system's investment in the African nation, is about $43.5 million, which is about one-third of 1 percent of KPERS' portfolio."
And: "Deck said selling the investments would have little effect on the overall performance of KPERS investments."
So do it.
Sigmund (anonymous) says…
It is no way yours, the employees and teachers EARNED it and it is theirs. Do the people who pay you have a right to tell you what you can do with "their money"?
What are " business connections" if Microsoft sells software in Sudan, that is a "business connection" and so KPERS must sell MSFT stock? Believe it or not this IS a much more complicated issue than what this article would leave you to believe.
Let them do as they see fit with THEIR own money. It ceased to be yours when you paid your taxes!
Baille (anonymous) says…
I don't doubt the complication of the issue, but just like everyone here, I have a right to provide input into how my tax dollars are spent or invested whether it be on the retirement plan for public employees, the social safety net for our most vulnerable citizens, or the way our education dollars are allocated.
While my tax dollars ceased to be mine when I paid in, it is the duty of all of us to make sure that money is wisely spent.
Sigmund (anonymous) says…
Well then I think the public employees and school teachers have a right to make sure you are investing your retirement dollars ethically. After all if you mishandle your retirement its the taxpayers that will have to provide for your retirement.
Honestly, keep your hands and your values off of other peoples property unless you are willing to have other people tell you how you should manage or handle yours!
What part of once it was EARNED by the public employees and school teachers it is not yours anymore, do you not get?
Baille (anonymous) says…
I know that public monies as well as 4% of the eligible employees wages fund KPERS. I know that tax dollars are being invested. I know that the legislature decides how much to fund it, regulate it, investigate it, and can decide how to invest its funds. I know that the legislature governs only by the consent of its citizens. I know that I am a citizen. I know that I have a duty to make sure that my government acts wisely. I know that the state of Kansas can not invest in countries declared off limits by the federal governemnt, e.g. Cuba. I know that the state of Kansas should not invest in Sudan, IMO.
And I can say all that without screaming at you or being disrespectful.
Mark_Skoglund (anonymous) says…
The KPERS testimony is misleading. They are considering companies BASED in Sudan, of which there aren't many.
These companies are based from other countries (i.e. China, Italy, France, Britain--none in the US, because of Clinton's sanctions) and act in the Sudan. Chinese oil companies are a large percent of offending companies. A French telecommunications company--Alcatel--runs a Sudan version called Sudatel. This company shuts off communication to areas right before they are attacked.
Only investment in these companies provides the foreign direct investment needed to continue the genocide, according to many independent NGO reports.
The testimony by the KPERS representative is misleading. Don't use misinformation as justification for inaction.
--Mark Skoglund
Executive Director, FIGHT International (Fighting Ignorance of Global Humanitarian Threats)
Sudan Divestment Task Force