Thu, Aug 28, 2008

Tucson Region

Council mulls Iran energy divestment

Concern is city retirement funds aiding terrorism
By Andrea Kelly
arizona daily star
Tucson, Arizona | Published: 05.23.2007
The Tucson City Council is considering pulling out of retirement funds that invest in energy-related companies in Iran, largely because of worries that those companies could be funding nuclear-weapons technology or terrorism.
A council majority requested information Tuesday on how other communities went about their Iran energy divestment, and for a plan to be developed for Tucson to do the same.
Councilwoman Karin Uhlich was absent, and member Carol West voted against the motion.
"This money belongs to the retirees, this is playing with fire," West said in explaining her vote. The decision should be left up to the retirees, not the City Council, she said.
Jean Wilkins, a member of the city's retirees association and a member of the Tucson Supplemental Retirement System's board, urged the council not to pass the motion, because it could harm city employee's retirements.
About 1,700 people are part of the Tucson Retirees Association.
"Morally we understand what you are attempting to do, but in reality it will only hurt your retirees," Wilkins said.
Councilman Steve Leal, who made the motion to find out how other communities have done this, said the divestment would only be in energy companies in Iran, not all companies with business in Iran.
He said having money in those funds is like playing Russian roulette, and suggested at the very least that employees get a choice in where their retirement funds are invested.
The city's staff has six months to come back with a detailed report.
Those who support the divestment made comparisons with the South African fund divestment many American entities did in the 1990s, and Leal said the city has also divested Northern Ireland and tobacco funds in the past.
"We all know that Iran's government has trampled the rights of its people," said Janice Lipartito, a citizen speaking to the council in favor of a divestment plan.
Councilwoman Shirley Scott asked the city's report to be issued to city employees, not just the council, so they can comment on any divestment plan.
In other business, the council voted unanimously to move forward with the Rio Nuevo plans for a $130 million University of Arizona Science Center and Arizona State Museum during a study session. The same version of the plan was approved last week in the Rio Nuevo council subcommittee.
● Contact reporter Andrea Kelly at 573-4243 or akelly@azstarnet.com.