The University of California became the first major public
university system to vote to divest from companies with financial
holdings in Sudan in a unanimous decision by the UC Board of
Regents on Thursday.
The university decided to withdraw its investments from nine
companies that a board-appointed study group found to most
significantly support the Sudanese government and provide the least
benefits for the people of the country.
Inside the meeting, about 100 students in green Sudan-divestment
T-shirts stood with linked arms and bated breath as each regent
said yes to divestment.
After the vote, some regents stood and applauded the students as
the audience cheered.
About another 100 students who were rallying outside the meeting
danced in celebration when they were notified of the vote. Some
eagerly called their friends to pass on the news. Many had been
working toward divestment for over two years.
Hailed by regents and legislators as a student-initiated issue,
the fight for UC divestment began with students who were concerned
with the university’s investments in companies that do
business in Sudan.
Thousands of people in Darfur have died at the hands of Sudanese
government-sponsored forces, in a series of events that the U.S.
Congress has declared a genocide.
“The University of California has taken a principled stand
against the tragedy in Sudan by severing its financial connections
from those nine companies who aid the genocide and by lending its
voice to those calling for peace in the region,” said board
Chairman Gerald Parsky.
Before the vote, some regents expressed support for the
students’ cause. During the meeting, none of the regents
commented negatively on divestment.
Student Regent Adam Rosenthal, who first brought the issue to
the board, called the vote historic and said the UC is sending a
clear message to the government, other universities and Sudan that
the UC will not stand by while people are dying.
State Assemblyman Paul Koretz addressed the board before the
vote, saying UC divestment could set an example for other public
institutions, citing public pension programs as one area where the
state of California could divest.
“If the UC regents take this step today, I have very
little doubt that other public pensions programs in California will
follow suit,” Koretz said.
Large-scale divestment plans could then put economic pressure on
the Sudanese government to stop the killings in Darfur, he
said.
There has been some concern since the UC took up the proposal
for divestment that withdrawing assets from Sudan could have a
negative financial impact on the university.
But the regents said they plan to seek action from the state
legislature to mitigate these potential effects by releasing the
university from any financial costs and claims arising from the
decision to divest.
Divestment of all shares held in the companies must be completed
within an 18-month period once the indemnification legislation is
enacted.
Though the exact dollar amount involved will not be known until
divestment is completed, UC Vice President for Business and Finance
Joe Mullinix said divestment is not expected to significantly
impact the UC’s overall portfolio.
Disclosing some of what was discussed at the closed compensation
meetings Wednesday, the board also addressed the recent
compensation controversies the university has faced.
Parsky said the regents and the UC’s president will
immediately begin a process to reorganize the UC Office of the
President, which has been the target of much of the recent blame
for the university’s compensation policy lapses and lack of
transparency.
He said the board will assess how to best organize and staff
UCOP to straighten business practices and management of the
university to better complement the university’s academic
excellence.
The board will consider creating positions for a chief operating
officer or administrative officer, as well as a chief financial
officer with responsibility for non-academic functions within
UCOP.
An independent compliance officer position could also be created
to provide the regents with sufficient oversight. The compliance
officer would report directly to the regents and be responsible for
ensuring compliance with university policies and practices.