PROVIDENCE, R.I. (WLNE) — The Providence City Council on Thursday considered an ordinance that would divest city funds from Israeli bonds and prohibit future investments in governments suspected of war crimes and human rights violations.
The ordinance was introduced by Council President Rachel Miller, Councilman Justin Loias and Councilman Miguel Sanchez, who cited the council’s 2006 order to divest from companies doing business in Sudan following the genocide in Darfur.
The proposal would prevent city assets from being invested or reinvested in bonds of governments that maintain long-standing military occupations that are the subject of UN Security Council resolutions and International Court of Justice rulings.
The city treasurer also must review any investments that may violate the ordinance.
“Our investments reflect our values,” Sanchez said. “Upholding the values of peace, freedom and justice means not taking part in a war that has claimed the lives of 15,000 children.”
The Jewish Voice of Peace of Rhode Island voiced its support for the ordinance, saying the bonds would “go directly to the Israeli treasury and provide unrestricted funds for the general operating funds of the Israeli military and government.”
“As a conscientious Jew, I don’t think our city should be lending public funds to the Israeli military and government without any guardrails or limitations to ensure our community doesn’t unintentionally support violations of international law and violence against Palestinians,” said JVP member Johanna Volhard.
Mayor Brett Smiley said he would veto the ordinance if it passed.
I am deeply concerned and disappointed by the City Council’s proposed divestment ordinance, which reeks of anti-Semitism. This ordinance will only lead to division and polarization, making members of the Jewish community feel even more isolated and targeted. I have worked hard to make our local Jewish community feel safe and welcome, and I share the RI Jewish Federation’s strong concerns about the language and misguided purpose of this ordinance. Currently, the City of Providence does not invest directly in State of Israel bonds. Within its approximately $430 million pension portfolio, the City holds $7.5 million worth of passive index funds that hold a broad range of international bonds from numerous countries, but as of this year, only 0.4% of its investments are invested in State of Israel bonds, totaling just $29,940. An ordinance requiring bond divestment of this magnitude would be counterproductive, ineffective, and likely in violation of state law. I strongly oppose this ordinance and intend to veto it if it passes.
Meanwhile, the Rhode Island Israel Coalition criticized the ordinance as “anti-Semitic” and “financially reckless.”
