AR 24
In Support of Divestment From Companies Involved In Genocide
Authors:
Ali Breland
Sponsors:
Jackson Clifford, Taral Patel
WHEREAS, The Student Government at The University of Texas at Austin serves as the official
voice of students; and
WHEREAS, The core purpose of The University Of Texas at Austin is, “to transform lives for
the benefit of society,” and one of its six core values is responsibility defined by the University as
“to serve as a catalyst for positive change in Texas and abroad,”; and1
WHEREAS, The government of Sudan and militias in the region have carried out genocide and
repeated acts of genocide against ethnic groups in Sudan and South Sudan, as recognized by the
United Nations and The United States Congress; and2 3
WHEREAS. The atrocities committed against the Sudanese people are some of the most
abhorrent and destructive tragedies the world has seen in the last several decades,
WHEREAS, The University of Texas Investment Company, hereafter referred to as UTIMCO,
has invested over $12 million in companies that fund or facilitate genocide in Sudan; and4
WHEREAS, These investments haven’t even proved to be profitable. As of 2013. the value of
these investments had dropped by over $2 million dollars since UTIMCO first purchased equity
in these companies; and5
1
"Mission, Core Purpose and Honor Code." About UT. The University of Texas at Austin, n.d.
Web. 25 Sept. 2014. <http://www.utexas.edu/about-ut/mission-core-purpose-honor-code>
2 Walker, Peter, and James Sturcke. "Darfur Genocide Charges for Sudanese PresidentDarfur
Genocide Charges for Sudanese President Omar Al-Bashir Omar Al-Bashir." The Guardian. N.p.,
14 July 2014. Web.
<http%3A%2F%2Fwww.theguardian.com%2Fworld%2F2008%2Fjul%2F14%2Fsudan.warcrime
s1%3Fgusrc%3Drss%26feed%3Dworldnews>
3
Straus, Scot. "Darfur and the Genocide Debate." Foreign Affairs. Council on Foreign Relations,
n.d. Web. 29 Sept. 2014. <http://www.foreignaffairs.com/articles/60434/scott-straus/darfur-andthe-genocide-debate>.
4
"The Blacklist." Texans Against Genocide. N.p., n.d. Web. 27 Sept. 2014.
<https://texansagainstgenocide.squarespace.com/blacklist/>.
WHEREAS, The money the Sudanese government has acquired from its dealings with the
blacklisted companies has directly increased Sudan’s military capacity and consequently
increased its capacity to commit genocide; and6
WHEREAS, According to a paper written for CFA Institute’s Financial Analyst Journal by Gary
P. Brinson, UT’s endowment fund wouldn’t be adversely affected by considering externalities
like genocide that extend purely by financial concerns. According to Brinson avoiding investing
in a limited amount of companies has no significant impact on overall portfolio performance;
and7
WHEREAS, Numerous universities with comparable endowments to UT like Harvard, Stanford,
and Yale have all successfully divested from companies that fund or facilitate genocide in Sudan
at little to no cost to their endowment; and8
WHEREAS, The likes of Governor Rick Perry, and Senator John Cornyn have advocated for
UTIMCO’s divestment from companies that fund or facilitate genocide in Sudan; and9 10
WHEREAS, In the words of Nelson Mandela, “Without the decades-long divestment campaign
undertaken by university students, churches, civil rights organizations, trade unions, and state and
local governments to cut economic ties to South Africa, the U.S. Congress would not have
[enacted economic sanctions on South Africa]. International sanctions were a key factor in the
eventual victory of [ending apartheid.]; and11
5
Ibid.
6 Clarke, Phil. "European Coalition for Oil in Sudan (ECOS)." Oil Money Paid for Sudan's
Genocide. European Coalition on Oil in Sudan, 14 Apr. 2012.
<http://www.ecosonline.org/news/2012/20120414_Oil_Money_Paid_for_Sudan%27s_Genocide/
>.
Web. 29 Sept.
20
7
Brinson, Gary P., L. Randolph Hood, and Gilbert L. Beebower. "Determinants of Portfolio
Performance." Financial Analyst Journal (1995): 133-38. Chartered Financial Analyst Institute.
Web. <http://financialactivist.com/docs/Determ_Port_Perf.pdf>.
8
Breland, Ali. "UT System Should Divest from Companies Supporting Genocide in Sudan - The
Daily Texan." The Daily Texan. The Daily Texan, 20 Mar. 2014. Web. 23 Oct. 2014.
9
"The Voter's Self Defense System." Project Vote Smart. The Daily Texan, 25 Mar. 2008. Web.
01 Oct. 2014. <http://votesmart.org/public-statement/330183/#.VCx7wSldXQ1>.
10
"Office of the Governor Rick Perry - [Press Release] Gov. Perry: TRS, ERS Should Divest
Funds from Companies with Ties to Iran." Office of the Governor of Texas Rick Perry. N.p., 25
Sept. 2007. Web. 01 Oct. 2014. <http://governor.state.tx.us/news/press-release/12/>.
11
Hartman, Mitchell. "Nelson Mandela's Legacy Is Economic, Too." Marketplace.org. American
Public Media, n.d. Web. 29 Sept. 2014. <http://www.marketplace.org/topics/world/nelsonmandelas-legacy-economic-too>
WHEREAS, Supporting egregious genocide, acts of genocide, and crimes against humanity is in
diametric opposition with core purpose, values, and mission of The University Of Texas;
therefore
BE IT RESOLVED, That The University of Texas at Austin Student Government calls on the
Board of Regents to create or agree upon a blacklist of companies that UTIMCO cannot invest in
that is more thorough and comprehensive then the Texas Comptroller’s blacklist; and
BE IT FURTHER RESOLVED, That The University of Texas at Austin Student Government
calls on the Board of Regents to establish policies that prevent UTIMCO from investing in
blacklisted companies that help perpetuate genocide in Sudan; and
BEIT FURTHER RESOLVED, That The University of Texas at Austin Student Government
calls on the Board of Regents to set additional policies that bar UTIMCO from having equity in
companies that help perpetuate genocide, at any point in the future.
BE IT FURTHER RESOLVED, that a copy of this Resolution will be distributed to at least the
Board of Regents of The University of Texas System, the Chief Executive Officer and Board of
Directors of The University of Texas Investment Management Company, the Office of the
Chancellor of The University of Texas System, and the Office of the President of The University
of Texas at Austin, Representative Guillen of the 31st House District, Representative Anchia of
103rd House District, Representative Parker of the 134th House District, Texas Student Media
Outlets, and The Daily Texan.