By Susie Gad, March 23, 2011

On March 18, 2011, members of the Minnesota Break the Bonds core committee met with representatives from the State Board of Investment and deputies from the offices of the Attorney General, the State Auditor, and the Secretary of State. The meeting was a follow up to the March 3, 2011 State Board of Investment meeting.

At the meeting, MNBBC highlighted its moral, legal and financial arguments for divestment from Israel bonds.  MNBBC was met with remarkable hostility, particularly from the representatives from the SBI and the AG. The SBI reiterated its position, which Governor Dayton voiced on March 3rd, that it solely considers financial returns in its decisions to invest and divest. Currently, the SBI insists that the Israel bonds that the state of Minnesota holds have competitive financial returns. The SBI also stated that it has never divested from a country on moral or ethical grounds.

Legal counsel from the AG’s office disputed MNBBC’s interpretation of the statute on state investments. The counsel argued that the statute is broad enough to allow Minnesota to invest in Israel Bonds. When MNBBC pointed out that the AG’s interpretation of the statute would also allow investments in “rogue” states, such as Iran and Sudan, the AG’s counsel agreed and did not dispute the absurdity of such an interpretation. Furthermore, she conceded that such an interpretation imposes no restrictions on investments in rogue regimes while restricting investments in US Government and Canadian Government obligations unless certain guarantees and conditions are met.

The AG’s office also insisted it had no obligation to draft a written opinion regarding the legality of Minnesota’s investments in Israel bonds, despite State Auditor Rebecca Otto’s motion at the March 3 SBI meeting to have the AG report back on the issue.  MNBBC was given no information regarding whether the AG is currently investigating the issue or has plans to do so in the future.

MNBBC gathered a lot of information at the meeting that will be helpful in solidifying our legal and financial arguments for divestment. However, our moral position remains the most important aspect of our campaign. Since, supposedly, it is only the legislature which can divest from Israel based on human rights and moral considerations, engaging our elected representatives remains crucial to our victory. Please join us on March 30 for MNBBC’s Day on the Hill to meet with your legislators and let them know that Minnesotans do not support investments in an oppressive regime. Register now by e-mailing rsvp@breakthebonds.org or calling 612.354.2960 with your name, address and/or district, and a way to contact you.

Photo: i-consult.org