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| FOR IMMEDIATE RELEASE |
| State Rep. Josh Shapiro |
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Report on terror-free investment shows progress in effort to end support for rogue regimes
HARRISBURG, Oct. 26 – The Office of the State Treasurer today released the first comprehensive report on the outcomes of the Protecting Pennsylvania's Investments Act of 2010, legislation that was written by state Rep. Josh Shapiro, D-Montgomery, and state Sen. Mike Stack, D-Philadelphia. The law requires Pennsylvania’s public pension plans to divest from companies that have major business activities in Sudan or Iran.
According to the report, 10 companies – including Royal Dutch Shell – have already ceased operations in Sudan and/or Iran and are no longer prohibited investments by the Commonwealth of Pennsylvania. A further six companies have declared that they plan to, or are in the process of, ceasing their involvement with these regimes in order to avoid divestment.
"This new report shows that the law is having precisely its intended effect," Shapiro said. "Exposing retiree pensions to the geopolitical risk in Iran and Sudan undermines their financial security, supports terror and genocide, and puts the Commonwealth’s assets at substantial financial risk. The bottom line is: Those who want to do business with the Commonwealth are severing their ties with these terrorist nations."
"Whenever we speak about the horrors of the Holocaust, we respond with a vow, 'Never again.' This new law puts those words into action," said Stack, who authored the legislation that became Act 44 of 2010. "It is inappropriate to use taxpayer dollars to invest in companies that do business in countries that sponsor terrorism and genocide. This report shows that the law is already having an impact and we can implement terror-free investing without harming our state pension funds."
"No one should deny the financial risk associated with investing in nations like Iran and Sudan," state Treasurer Rob McCord said. "Act 44 is a clear statement that Pennsylvania will not allow our public financial resources to help rogue nations. This report, and similar reports in future years, will detail how we prudently represent the state's taxpayers -- and how we support positive change in nations where we now have radical regimes."
This report is mandated by the original legislation, known officially as Act 44 of 2010, and is required to be provided to the governor, the legislature and the governing boards of the pension funds run by the state: the Municipal Retirement System, the Public School Employees’ Retirement System and the State Employees’ Retirement System. It includes the most recent list of scrutinized companies, a summary of correspondence between the Commonwealth and these companies, and the course of action taken either by each company to become compliant, or by the Commonwealth to divest or set a course for divestment.
The full report is available here.
Shapiro represents the 153rd Legislative District in Montgomery County. For more information, visit www.pahouse.com/Shapiro.
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