Despite testimony by four SF State faculty members, a state assembly committee voted Monday not to withdraw state employee pension funds invested in companies doing business with South Africa.
Social work instructors Stan Ofsevit and Willia Gray, philosophy instructor Marcia Keller and economics instructor Julianne Malveaux spoke in behalf of A.B. 134, authored by assembly woman Maxine Waters, D-L.A., which called for the divestment.
Although the bill was rejected by the Public investments, Finance and Bonded Indebtedness Committee, Waters' other bill, A.B.1134 passed.
If A.B.1134 is passed by the legislature and approved by the governor, no new state pension monies will be invested in companies with economic ties to South Africa.
Keller said the instructors will now work to find "morally responsible" candidates to elect to the board of directors of the Public Employees Retirement System.
PERS and the State Teachers' Retirement System combined to invest $8.6 billion in companies that do business with South Africa, where a white minority government enforces strict racial segregation laws on the black majority.
During the hearing, Ofsevit testified during the hearing, Ofsevit testified, "I don't want blood money when I'm retired.
"He urged the committee to support the idealism shown by students in recent anti-apartheid protest on campuses across the country, including UC Berkeley and Columbia University.
Gray's comments reflected the fevor of most witnesses who spoke on behalf of Waters' bills. "Continuing support of apartheid equals fiscal suicide for California's investments," said Gray. "California's money is in a smoldering building and we need to put it out before it goes up in flame."
Some testified against Waters' bills. Barbara Cavallier of the California Manufacturers Association help effect change."
Assembly member Eric Seastrand, R-Salinas, agreed. "Divestiture would bring a holocaust to the working people of South Africa "by eliminating the best jobs available to blacks there, he said.
But John Harrington, representing the San Francisco-based Working Assets mutual fund, said there is extreme financial risk to countries that invest in South Africa. "It's a volatile situation," he said. "Forty companies have already withdrawn in recent years, and the prime rate there is 25 percent." Harrington added that these developments should warn investors against potential financial disaster.
Waters said she hoped California would follow the example of other states, such as Michigan and Massachusetts, that have passed divestiture legislation.
Waters did not seem daunted by the half-victory after the voting.
"I'm the eternal optimist. I never give up," she said.
Keller, Gray and Ofsevit, who were among the 22 people arrested at an anti-apartheid sit-in at the Federal Building in San Francisco last Monday, said they would continue to push for divestment.
They added they may file a class action suit to prevent the pension funds from being invested in companies with South African ties.
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