Idaho News
PERSI members upset over Sudan investments
06:49 PM MST on Tuesday, February 27, 2007
BOISE -- Today, a story out of the African nation of Sudan could impact tens of thousands of Idahoans. Two of Sudan’s top leaders were indicted for the murders of hundreds of thousands of people.
What may surprise many Idaho workers is that part of your retirement fund is caught up in the controversy created by the ongoing genocide in Sudan.
About 115,000 Idaho workers are members of PERSI, the Public Employee Retirement System of Idaho, and $11 billion of their retirement money is invested throughout the world.
Last month, it was discovered, some of that portfolio is linked to Sudan and that has many members upset.
Paul Boehlke-KTVB
Yagoub Khair is a Sudanese refugee now living in Boise.
In the Darfur region of Sudan, it's estimated at least 200,000 people have been killed and another 2.5 million driven from their homes since rebels took up arms against the government in 2003, alleging neglect.
"My country right now is very, very bad," said Yagoub Khair.
Among those forced to leave Darfur was Yagoub Khair, a refugee now living in Boise.
"Have you lost friends and relatives?" asked NewsChannel 7.
"I have lost a lot of friends, a lot of friends, a lot of friends. I lost my dad, too," said Khair. "My dad he died. He shot with a gun."
Yagoub joined a handful of protestors outside the Boise offices of PERSI, an agency responsible for investing the retirement funds of 115,000 Idaho workers.
"Our main job is to provide a secure retirement for our public employees," said Jody Olson, PERSI Chairman.
Last month, PERSI was informed about $50 million worth of its employee retirement funds were invested in international companies allegedly doing business in Darfur, Sudan, something that raised the ire of many.
"Genocide is a crime, no fiduciary anywhere in the world is allowed to invest in a criminal enterprise, whether it be organized crime, drug smuggling or a profitable genocide," said John Sullivan, Idaho Task Force for Divestment in Sudan.
"We certainly don't support genocide and so we need to balance the responsibility to our retirees with what they want to do socially," said Olsen.
At its annual meeting, protestors and PERSI members asked the board of directors to divest from companies doing business in Sudan. The board agreed to considermaking changes, but stopped short of making any guarantees.
"PERSI's disappointing resolution does not go nearly far enough to really consider this issue," said Sullivan. "I have not come across one retiree or one PERSI member that has yet to tell me we should stay invested, they're all outraged by this and that outcry is starting to be felt."
"We hear loud and clear that our members are interested in this," said Olson.
Olson says PERSI will assess the impacts of divestiture and reconvene next month to work on finding a financial and a social compromise.
"We have a lot of research to do to understand what effect our investments have in the Sudan," said Olson. "We're serious about trying to make it work."
This situation is certainly not unique to Idaho, several other states are trying to find suitable solutions, including many of them considering legislation to divest their pension funds from the Sudan. Even that is controversial, though, with at least one court ruling it's unconstitutional to legislate those investments.More Local News
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