Opposing S. Africa : Santa Monica Schools Join Divestiture List

The Santa Monica-Malibu Board of Education has joined a growing list of universities, cities and states in condemning the apartheid system of government in South Africa.

The board last week passed two resolutions by 5-0 votes that called for the school district to “curtail” investments in institutions that provide loans to or do business with South Africa.

The board also urged the Los Angeles County Board of Supervisors to create a separate investment pool for the district and any other agency in the county that wishes to avoid investing in South Africa.

The district deposits money in the county treasury, where it is pooled with the funds of about 100 public agencies and invested as the treasurer sees fit. The district maintains a monthly investment balance of between $1 million and $2 million, district spokeswoman Janice Walker said.

Reasons for Action

The action is justified, the school board said, because South Africa:

- Prohibits its black citizens, who make up 77% of the population, from voting.

- Institutionalizes racism with laws of apartheid that forbid blacks an equal opportunity for education, employment, housing and travel.

- Enforces laws through repression and force.

The board also urged the Public Employees Retirement System and the state Teachers Retirement System not to invest in institutions that provide new loans to South Africa and to divest from corporations providing military supplies to South Africa “for oppressive purposes.”

Although School Supt. George Caldwell told the board that the county counsel saw “nothing out of line” with the request for a separate investment pool, county Treasurer Richard Dixon said Thursday he had yet to receive a legal opinion.

“If it is legal, I would recommend we do it,” said Dixon, adding that he expected an answer from the county counsel within 30 days.

The county counsel must determine whether the treasury can operate a separate investment pool on social and political standards instead of the traditional standards of security, liquidity and yield, Dixon said.

“The kinds of investments that are involved in a short-term pool are not the kinds of investments most people talk about when they talk about the South Africa investment issue,” he said. Long-term investments normally targeted by apartheid foes include common stocks or corporate bonds, he said.

No Long-term Investments

Walker said the school district has no long-term investments.

The only speaker to address the school board on divestiture was Monroe Allen, who urged support for resolutions on behalf of the Santa Monica-Venice chapter of the National Assn. for the Advancement of Colored People.

“The black South Africans seem to support this approach,” Allen said. “By passing these resolutions, you would be sending a message not only to South Africa but to our own government that apartheid must end.”

Michigan, Connecticut and Massachusetts and the cities of Berkeley, Davis and Cotati in California have enacted legislation to force divestiture from firms with interests in South Africa. The Santa Monica City Council voted earlier this year to begin withdrawing funds from banks doing business in South Africa.