The city of Dearborn is taking a significant step by divesting from companies that supply weapons to Israel. This decision follows a unanimous vote by the Dearborn City Council, instructing financial managers to remove any such companies from its investment portfolios.
The Council’s Bold Move
On Friday, the City Council passed two policy statements aimed at guiding the investment firm DeRoy & Devereaux, which manages some of Dearborn’s assets. The statements apply to the city’s post-employment healthcare fund and its police and fire retirement system.
Key Points of the Policy Statements
- Focus on Human Rights Violations: The statements specify that the city will not invest in publicly traded companies that “knowingly and directly enable or facilitate human rights violations or violations of international law.”
- Specific Mention of Israel: While the statements mention Israel, they are worded broadly enough to potentially apply to other countries as well.
This decision ignited a heated debate during the recent city council meeting. Residents expressed mixed feelings, with some advocating for a stronger stance against Israel, while others felt the city was being unjust.
Mayor’s Response
Dearborn’s Mayor, Abdullah Hammoud, did not hold back in his defense of the council’s actions. He highlighted the ongoing humanitarian crisis in Gaza and Lebanon, stating, “What is happening is against all international law… and I’m damn proud of this council for taking the side of justice.”
Comparison to Other Divestments
Hammoud likened this divestment from military companies to past movements against tobacco and gun manufacturers, arguing that the city has a responsibility to stand up for human rights.
Financial Considerations
The city controls about 25% of the $700 million in question for the post-employment healthcare fund and retirement systems. City Council President Michael Sareini emphasized the importance of aligning investments with community standards while also maintaining fiduciary responsibilities.
Rebalancing the Portfolio
The city plans to “rebalance” its portfolio to ensure there are no significant financial losses while divesting from military contractors. Morgan Stanley’s Graystone Consulting provided guidance on how this rebalancing might be implemented without jeopardising the portfolio’s 6% rate of return.
Community Reactions
Dearborn has a rich history of pro-Palestinian activism, with nearly 55% of its population identifying as Middle Eastern, according to 2020 census data. This demographic has been deeply affected by the ongoing conflict, and many residents have expressed their grief over recent losses.
Support for Divestment
During public comments at the city council meeting, many speakers supported the divestment initiative. Marion Mourtada, a local resident, shared her personal connection to the conflict, stating, “My faith says that we are supposed to care… Divest from Israel and divest from the military industry.”
Opposition Voices
On the flip side, some residents voiced their concerns about the city’s actions. Individuals like Anthony Deegan argued that the council’s focus on Israel overlooks the complexities of the situation. He expressed that many residents, including himself, have different perspectives on the conflict.
Legal Considerations
While the Dearborn City Council has moved forward with its divestment strategy, there are questions about its compliance with Michigan law. In 2017, a law was enacted preventing public contracts with those who support divesting from “strategic partners” of the U.S., which includes Israel.
State Response
A spokesperson for Governor Gretchen Whitmer referred inquiries regarding divestment to the state Treasury Department, which claimed the issue falls outside its jurisdiction.
Recent Activism
The decision to divest follows increased activism in Dearborn, with over 80 protests held in the past year alone. The emergence of groups like Dearborn Divest has amplified calls for action, pushing city officials to respond to community concerns.
Mayor’s Engagement
During a recent rally, Mayor Hammoud defended the city’s actions and engaged with activists who claimed the city hadn’t done enough. “We have been working on this for over a year… we are on the right side of history,” he asserted.
Conclusion
Dearborn’s decision to divest from companies linked to the Israeli military marks a pivotal moment in the city’s stance on international human rights. As the council navigates this complex issue, the implications for both local residents and broader geopolitical conversations remain profound.
The council’s actions may inspire similar movements across the U.S., advocating for ethical investment policies that reflect community values and human rights considerations.
