Legislators to tackle bill calling for Iran divestment
By Kristin Erekson
Jewish Advocate
In an attempt to halt Iran's nuclear program, local legislators and Jewish groups are working together to promote a bill that would put economic pressure on the Persian state.
Filed in the Massachusetts State House on July 30, the legislation encourages the Pension Reserves Investment Management Board of the Commonwealth of Massachusetts (PRIM) to sell securities in companies with investments in Iran's oil and natural gas industry, and to refrain from directly investing in such securities in the future.
According to State Rep. Antonio F.D. Cabral (D-New Bedford), the lead sponsor of the bill in the Massachusetts House of Representatives, the value of the state's shares in Iran's petroleum sector is more than $424 million. The state's pension fund totals roughly $50 billion, Cabral said.
"[The Act to Protect the Massachusetts Pension Fund from the Risks of Investment in Iran] is important because we are supporting a country that is one of the primary sponsors of terrorism around the world," added Cabral, who noted that the bill currently has more than 50 co-sponsors in the House and Senate. "It's a nation and, actually, a government that doesn't believe the Holocaust happened, which, to me, is shocking. When you put all of it together you say, 'Wait a minute, why should we be investing in companies that will benefit the oil and natural gas industry in Iran?"
Alan Ronkin, deputy director of the Jewish Community Relations Council of Greater Boston, who worked with Cabral and other legislators on drafting the bill, said that approximately 20 companies - including China Petroleum and Chemical Corp. and Royal Dutch/Shell Group - conduct business within Iran's oil and natural gas sector. Ronkin said it's important to cut these ties because Iran's pursuit of nuclear weapons is "the most dangerous threat" to Israel and the U.S.
"This is not really a Jewish issue but an American issue," Ronkin added.
An email distributed by an aide from Cabral's office stated that Iran is using its oil revenues to manufacture nuclear material in direct violation of the United Nations Security Council Resolutions.
Yet Michael Travaglini, executive director of PRIM, told the Advocate that he - along with State Treasurer Tim Cahill - does not support the Iran divestment legislation because his office is opposed to all forms of divestment.
"I think there is a real potential to negatively impact the investment performance of the pension fund," Travaglini added.
While legislators wait for the bill to make its way for review by the Massachusetts' Joint Public Service Committee, other states have already taken a lead in enacting similar legislation.
In late July, the U.S. House of Representatives overwhelmingly passed the Iran Sanctions Enabling Act, which was introduced by Financial Services Committee Chairman Barney Frank (D-MA). And Florida recently became the first state to enact legislation to direct its pension fund to divest from specific stocks in Iran.
State Rep. Barry Finegold (D-Andover), who is currently running for the seat in the 5th Congressional District, expressed support for divestment from Iran.
"I think by allowing the state pensions fund to invest in companies that do business with Iran, we are rewarding bad behavior," said Finegold.
He added: "There are some things that are more important than profits."
