CR 08-106 Divestment from Companies doing business with Sudan~ ~
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November C. 2008 Council Report 2008-106
DIVES7'MF,NT FROl~'1 COMPANIh:S 1)OINC BUSINESS WITH SUDAN
Pro~oscd Action
Staff recommends adoption of the tollowing motion: Move to adopt Resolution 2008-064,
Divestment f-rom companics doing business in Sudan.
AdOpllon oI lllls reSOlllllon ~V1I1 altesl lhal n0 Clll'rcill of 1Lllllre 117~'CS1mCn1S OI the C11V Of
Hopkins will be made in companics whose operations are deemed to be complicit with the
Government o(~ Sudan's genocidal activities in ])arl~ur.
~l~~e~~i~~w
I11 ,Tune, MaI'l: I tlI'ba~ anCl l ~Ca1hC1' SChollllllcr, ~ro111 1110 CCnlel' for IIOIOCaUSI a11d C7el10Clde
Studies, made a presentation to the IIopkins I Inman Rights Commission. They spoke about the
Genocide Intervention Networl: and speciiicall~~ about [~arfiu-. 'I~hey ur~~ed the City of Hopkins to
dlvesl lI1 Coillpallles ~~~OI'IUng ~'1'llh Slldall and to pass all anll-genoClde 1'eso~llll011.
They told the Commission that the Sudan Accountability and f~iveshnent Act oI~ 2007 (S. 2271),
authorires state and local goveriuncnts to divest (i~om Sudan. ~I'hev said that the cities oI~ St. Paul
and Edina had adopted divestment resolutions. "Chc current Sudan divestment movement
encompasses more than one hundred uni~~crsitics, cities, states. and private pension plans.
The Commission net main in September and adopted, as one of its goals, making a
recommendation to the I Iopkins City Council to adopt a divestment resolution.
Primary issues to Consider
Why should the City of~ I Iopkins talc this action`?
~I,he City of I Iopl<ins does not invest in anv individual corporation. 'I~his resolution would
have no practical eflcct on City in~~cstmcnts. Ho~~~c~~cr, the Iluman Rights Commission
believes that the symbolic action of adopting this resolution will help send a message that
I lopl:ins supports elf orts to end the genocide in Darfur.
SuP~ortin;~ llocumcnts.
Resolution 2008-064
~~
'~ mcs A. Gcncllic
Staff Liaison to the Iluman Rights Commission
City of Hopkins
Hennepin County, Minnesota
RESOLUTION NO. 2008-064
WHEREAS, on July 23, 2004, the United States Congress declared that "the atrocities
unfolding in Darfur, Sudan are genocide;" and
WHEREAS, on September 25, 2006, Congress reaffirmed that "the genocide unfolding
in the Darfur region of Sudan is characterized by acts of terrorism and
atrocities directed against civilians, including mass murder, rape, and
sexual violence committed by the Janjaweed and associated militias with
the complicity and support of the National Congress party-led faction of
the Government of Sudan;" and
WHEREAS, on May 23, 2007, the State of Minnesota passed a bill divesting
Minnesota's State Board of Investment from companies complicit in the
genocide. Upon signing, the Governor stated, "Minnesotans can be proud
that we are taking action to help cut off the flow of money to Sudan's
military. We're doing our part to stop the crimes and inhumanities in
Darfur;" and
WHEREAS, on December 31, 2007, the President of the United States signed into law
the Sudan Accountability and Divestment Act of 2007 (S. 2271), which
authorizes state and local governments to divest from Sudan and prohibits
federal contracts with companies that support the Khartoum government
of Sudan; and
WHEREAS, the City of Hopkins is concerned not only with the financial repercussions
of investment in companies whose values will be negatively affected by
their involvement with the genocide being waged by the Government of
Sudan, but also with the moral implications of such financial
arrangements; and
WHEREAS, the citizens of the City of Hopkins do not want funds used to perpetrate
terrorism and atrocities against civilians; and
WHEREAS, the City of Hopkins acknowledges that a refusal to invest in and
divestment from companies that have been targeted as complicit with
genocide is a course of last resort that should be used sparingly,
consistent with a City's fiduciary duties and only under extraordinary
circumstances. In the case of Sudan, Congressional and Presidential
declarations of genocide satisfy this high threshold; and
WHEREAS, this Resolution is not intended to set precedent with regard to investment
and divestment policies and practices of the City of Edina but is solely in
response to the exigencies of the declaration of genocide; and
WHEREAS, the Finance Director of the City of Hopkins has determined that the City
does not now own any investments in the scrutinized companies identified
by the Sudan Divestment Task Force; and
WHEREAS, it is the judgment of the City of Hopkins that this Resolution should remain
in effect only insofar as it continues to be consistent with, and does not
unduly interfere with, the foreign policy of the United States as determined
by the Federal Government.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
directs that no investments shall be made in any company or corporation
identified as a scrutinized company by the Sudan Divestment Task Force.
The effective date of this policy shall be upon the adoption of this
Resolution by the Hopkins City Council.
Adopted by the City Council of the City of Hopkins this 18th day of November 2008.
By
Gene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk