Beacon-Journal: Those duties begin with making money for retirees here at home...not meddling in foreign policy like Husted, Mandel, and Jones

Posted on Mon, Jun. 11, 2007
Akron Beacon Journal

"Those duties begin with making money for retirees here at home, not meddling in foreign policy based on the tenuous links drawn by Husted and the bill's primary sponsors, Republicans Josh Mandel of Lyndhurst and Shannon Jones of Springboro."

Drafted by the speaker

State pension funds join the war against terrorism

Facing the threat of a legislative mandate, state pension fund managers last week agreed to sell investments in foreign-owned companies doing business in Iran and Sudan. Jon Husted, the House speaker, gave the managers little choice, imposing a 48-hour deadline for adopting a disinvestment policy while holding a bill in his back pocket.

The bullying, of the five pensions funds and the companies, amounts to political theater intended to portray House Republicans as tough on terrorism. But even supporters (including William Batchelder of Medina) admitted it didn't make much sense to pressure companies such as Rolls Royce when they are contemplating major investments in Ohio. Batchelder revealed that he actually favors bombing facilities in Iran and Sudan that are being used to support terrorist activities.

The bill passed. Batchelder and other Republicans supported an amendment that would exempt the pension funds from disinvesting if the cost of doing so exceeded one-half of 1 percentage point of the original investment. Principle, it seems, has its price.

As it is, the letter to Husted from the pension fund managers is carefully hedged, pledging an ``intent'' to divest 50 percent of the estimated $500 million in dozens of targeted companies by the end of the year, with an ``ultimate goal'' of full divestiture. (No timeline specified.) Policies will be developed ``consistent with the boards' fiduciary duties.''

Those duties begin with making money for retirees here at home, not meddling in foreign policy based on the tenuous links drawn by Husted and the bill's primary sponsors, Republicans Josh Mandel of Lyndhurst and Shannon Jones of Springboro. According to Husted, the companies help fund governments that provide weapons to terrorists who kill Ohio soldiers and National Guard troops in Iraq or, in the case of Sudan, who commit genocide.

Which companies are they? The roughly 60 in question are well within the mainstream of the international business community. They include Royal Dutch Shell, Total (a French oil and gas company) and Norsk Hydro (a Norwegian company that drills for oil offshore). Hardly supporters of terrorist mayhem. What ever happened to the idea that Western investment serving as constructive engagement?