Mayor Smiley: Providence City Council ordinance “reeks of antisemitism”. Will veto if passed.

In a strongly worded response to hearing of a new proposed ordinance of the Providence City Council, Mayor Brett P. Smiley said if they pass it he will veto it, saying it “reeks of antisemitism”. The ordinance would seek to “divest city funds from Israel sovereign bonds and prevent future investments in sovereign bonds of governments accused of war crimes and human rights violations”, and it would be one of the first passed by any US government entity, according to the sponsors.

Sponsoring the ordinance are: Majority Whip Miguel A. Sanchez, Councilor Justin M. Roias, Council President Rachel M. Miller

Mayor Smiley’s statement:

“I am deeply concerned and disappointed in the City Council’s proposed divestment ordinance that reeks of antisemitism. The ordinance is divisive and polarizing and will only make members of our Jewish community feel further isolated and targeted. I have worked hard to ensure our local Jewish community feels safe and welcomed and share the RI Jewish Alliance’s strong concerns about the language and misguided purpose of this ordinance.

Currently, the City of Providence has no direct investments in State of Israel Bonds. Within the pension portfolio of approximately $430 million, the City holds a passive index fund valued at $7.5 million that holds a wide range of international bonds from a multitude of countries and as of this year only 0.4% of that investment is in State of Israel Bonds, totaling only $29,940.

An ordinance requiring the divestment of a bond of this size is unproductive, ineffective and possibly violates state law. I am strongly opposed to this ordinance and if passed, intend to veto it.

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Statement from the Providence City Council as posted last night. The ordinance now moves to the Finance Committee for consideration:

“Tonight, Providence City Councilors heard an ordinance that would divest city funds from Israel sovereign bonds and prevent future investments in sovereign bonds of governments accused of war crimes and human rights violations. The move makes Providence’s City Council one of the first city governments in the country to consider such action. Since October 2023, it’s estimated more than 36,000 Palestinians have been killed in Gaza, including over 15,000 children. According to the ordinance sponsored by Council President Rachel Miller, Councilor Justin Roias, and Councilor Miguel Sanchez, “City investments are a reflection of our values, and the Providence City Council has an ethical and financial responsibility to ensure taxpayer dollars are not invested in war crimes and human rights violations.”

There is precedence for the Council to take action. In 2006, the Providence City Council became the first American city to divest from companies that conducted business in Sudan after the genocide perpetrated in Darfur. In November of 2023, the Council became one of the first legislative bodies in the country to call for a ceasefire.

What does the proposed legislation do?

• The city’s assets in any investment account, including pension, endowment, and annuity funds, shall NOT be invested in any sovereign bonds of governments maintaining a prolonged military occupation that have been the subject of United Nations Security Council resolutions and/or International Court of Justice rulings.
• The city shall NOT reinvest any of its currently held sovereign bonds of governments maintaining a prolonged military occupation that have been subject of United Nations Security Council resolutions and/or International Court of Justice rulings, should they exist, once the bonds mature.
• The City Treasurer shall review the city’s investment portfolio and identify any investments that violate the legislation.

“Not a single Providence taxpayer dollar should ever go to funding genocide,” said Majority Whip Miguel Sanchez (Ward 6). “Our investments are a reflection of our values. Upholding the values of peace, freedom, and justice means not contributing to a war that has taken the lives of 15,000 children.”

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Members of the Finance Committee:

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The Ordinance

“SOVEREIGN BONDS OF THE STATE OF ISRAEL AND OTHER SOVEREIGN STATES”

WHEREAS, Over 36,000 Palestinians have been killed since October 7, 2023, including over 15,000 children, and over 81,000 Palestinians have been injured; and

WHEREAS, The Providence City Council condemns Hamas for its premeditated, coordinated, and brutal attacks on October 7, 2023, killing some 1,200 Israelis, and taking more than 200 hostages; and

WHEREAS, More than 85 percent of the population of Gaza-or 1.9 million Palestinians- have been forced to flee their homes since October 7^th; and

WHEREAS, In January, 2024, the International Court of Justice (ICJ) determined it is “plausible” Israel has committed acts that violate the Genocide Convention; and

WHEREAS, Since 1967, Israel has maintained an illegal occupation of the West Bank and Gaza, preventing Palestinian self-determination and forcing Palestinians to live in unbearable conditions without basic political and human rights; and

WHEREAS, In April, 2024, the United States approved an additional $26 billion of military aid to Israel, which comes on top of the over $300 billion in combined economic and military aid, adjusted for inflation, that the United States has provided Israel with since its founding; and

WHEREAS, The Providence City Council does not have jurisdiction over international affairs but believes firmly in its moral duty to use its platform to address world events that have ripple effects in local communities; and

WHEREAS, On November 2, 2023, the Providence City Council became one of the first legislative bodies in the country to call for a ceasefire, passing a resolution with near unanimous support; and

WHEREAS, The Providence City Councils reaffirms its urgent call for an immediate and permanent ceasefire to prevent further loss of life, facilitate humanitarian aid, release the hostages, and pave the way for diplomatic efforts towards lasting peace in the region; and

WHEREAS, In 2006, the Providence City Council became the first American city to divest from companies that conducted business in Sudan due to the genocide perpetrated in Darfur; and

WHEREAS, City investments are a reflection of our values, and the Providence City Council has an ethical and financial responsibility to ensure taxpayer dollars are not invested in war crimes and human rights violations.

Now Therefore, Be it ordained by the City of Providence:

Section 1. Chapter 2, “Administration”, is hereby amended to add Section 2-17.1, “Sovereign bonds of the State of Israel and other sovereign states.” as follows:

Section 2-17.1 – Sovereign bonds of the State of Israel and other sovereign states.

The assets of any investment account, including pension, endowment, and annuity funds, under the jurisdiction of the board of investment commissioners and/or finance director shall not be invested in any sovereign bonds of governments maintaining a prolonged military occupation that have been the subject of United Nations Security Council resolutions and/or International Court of Justice rulings, avoiding the governmental debt of each country until said government ends their military occupation.

Section 2. This ordinance shall take effect upon passage.

Providence City Council vote and commentary pro and con (from council YouTube channel)