FOR IMMEDIATE RELEASE: Contact: Alexis Grenell
July 24th, 2007 (800) 718-2039, office
(646) 509-3554, cell
Tied to Terrorism
Klein Reveals Exact Assets Invested in Iran, Syria, Sudan, and N. Korea
NEW YORK—As a follow-up to his June 2007 analysis of New York State pension fund assets which found that $12 billion of New York's total $75 billion in equity assets are invested in companies that do business with nations that sponsor terrorism, Senator Jeff Klein (D-Bronx/Westchester), today released further information about the exact amount of money invested in companies doing business with Iran, North Korea, Sudan and Syria.
Of the 235 state pension fund holdings with financial links to terror, 204 have ties to Iran (approx. $10.4 billion or 14% of the total portfolio), 30 have ties to North Korea (approx. $934 million or 1% of the total portfolio), 111 have ties to Sudan (approx. $8.4 billion or 11% of the total portfolio) and 133 have ties to Syria (approx. $9 billion or 12% of the total portfolio). The total exceeds the 235 holdings or 16% of total equity assets cited in Klein's original report, Terrorist Treasury: Investing in Our Enemies, because some companies are active in more than one terror-sponsoring nation.
"New York State can not support the hypocrisy of a war on terror while simultaneously investing in our enemies. Let's use our power as shareholders to demand a fiduciary and moral obligation from our corporate partners. The retirement of New York's civil servants cannot be financed on the backs of our brave men and women who are sacrificing their present so that we may enjoy the future," said Senator Klein.
The report, compiled with the assistance of Conflict Securities Advisory Group, Inc. a Washington, DC based research and consulting firm that specializes in the assessment and management of global security risk - i.e., the risk associated with corporate ties to
countries of security concern, terrorism or weapons proliferation, cited several well known conglomerates like the Chevron Corporation ($537,599,794), Coca-Cola ($349,280,545), and Royal Dutch Shell ($209,991,294) with financial ties to terrorist nations.
"These numbers are chilling and should be a wake-up call to all New Yorkers," said Senator Craig M. Johnson, (D-Port Washington). "Our pension fund should not be used to benefit those who seek to do us harm, particularly in Iran. We need to step up and join the other states that have done the responsible thing and pulled their money from these companies that continue to do business with rouge nations."
The study is based on an analysis of assets listed in the Comptroller's 2006 Comprehensive Final Annual Report. A $140 billion investment, the NY State pension fund has an overall membership of 995,536 individuals, including 653,291 active members and 342,245 beneficiaries and retirees.
As the sole trustee, the Comptroller is responsible for the Common Retirement Fund, which represents The New York State and Local Employees' Retirement System, and the Police and Fire Retirement System, providing pension, death and disability benefits for state and local government employees and employees of certain other participating employers.
To address the problem of state investments inadvertently funding terror, Senator Klein introduced The New York Terror Free Investment Act of 2007 to limit the investment of public retirement funds in corporate or financial entities doing business in or with the nations of Iran, Syria, North Korea and Sudan, nations which have been designated by the U.S. State Dept. as state sponsors of terrorism. Similar legislation introduced after Klein’s report passed the Senate overwhelmingly in June, and would require the State Comptroller to divest from and refrain from any further public pension fund investments in Iran, Syria, North Korea and Sudan, as well as to issue a report outlining any current public pension fund investments in these nations within 6 months. An Assembly companion to that measure is currently being considered by the Assembly Committee on Government Employees.
Many other states have enacted or proposed legislation regarding divestment from Iran, including: California, Florida, Georgia, Kansas, Louisiana, New Jersey, Oklahoma, Oregon, Texas, and Missouri.
State Senator Jeff Klein – 3713 East Tremont Avenue, Suite LL, Bronx, NY 10465 - (800) 718-2039