New Haven Divests From Sudan

The city of New Haven has divested its pension funds from companies tied to the Sudanese government.

Earlier this year, Yale University, located in New Haven, divested from seven companies that do business with Sudan.

New Haven’s divestment comes on the heels of a similar decision in Providence, RI. For New Haven, the move is not unprecedented, as city officials took a similar measure in the early nineties, divesting from businesses involved in South African commerce during the era of Apartheid.

The measure, passed by New Haven’s two pension boards, prevents the city’s pension funds—the City Employees Retirement Fund (CERF) and the Policemen and Firemen’s Pension Fund—from backing seven companies that do business with the Sudanese government. The measure also stipulates that financial consultants assess the funds for other investments with ties to Sudan.

Chairs on each pension fund were quick to point out that while similar events in Providence did not directly inspire their decision, they saw the potential for other cities to follow suit.

“I would assume that down the road you’re going to see more and more cities divest,” Chair of the Policemen and Firemen’s Pension Fund James Kottage said.

Cambridge officials could not be reached for comment yesterday. But Cambridge Councillor Denise E. Simmons told The Crimson earlier this month that she could “see Cambridge following in support” of the divestment movement.

In New Haven, trustees on the board of each fund met with Alderman Nicholas Shalek and City Controller Mark Pietrosimone to determine the viability of divestment.

“Both chairmen said this is something that [they] would fully support,” Pietrosimone said yesterday.

Shalek, a Yale graduate of the Class of the 2005, first raised the issue of divestment, Pietrosimone said.

Shalek told the Yale Daily News earlier this week that the work of Students Taking Action Now: Darfur, as well as his own work in Yale’s Investments Office alerted him to the possibility of divestment.

The trustees were receptive to the proposal, Pietrosimone said.

“We divested in a rapid manner, taking into account...our fiduciary responsibility,” said Kottage.

Trustees credited the measure’s success and speedy passage to the nature of the Darfur issue. “It’s just a situation that can’t exist,” CERF Chair Jerry Sagnella said. “There’s no argument...for it on the other side of the coin.”

Sagnella emphasized that it was important for divestment not to become a political tool in split issues.

“You’ve gotta be careful on issues like that because you’re setting yourself up to be like an arbitrator and an umpire,” Sagnella said. “And that’s not our job, we’re trustees.”

According to the New Haven pension fund chairs, the amount of money invested in the blacklisted companies is unknown, but it is likely to be small. “We’re unaware [of the quantity], if it’s there we feel it’s a minimal amount,” Kottage said.