Terrorless investing

At a meeting earlier this month, the board that decides how more than $6 billion in the Missouri State Employees Retirement System will be invested was evenly split on a concern raised by State Treasurer Sarah Steelman regarding investments that may be going to organizations with ties to terrorism.

There is little doubt that Missourians -- including the five MOSERS board members who voted against Steelman's effort to curb some of the system's investments -- do not want to support terrorists in any way. But how far should a policy on questionable investments go? The vice chairman of the board, state Rep. Todd Smith of Sedalia, questioned how a determination could be made regarding potential investments linked to terrorism. Smith also wondered if other litmus test for investing might lap over into areas such as tobacco companies and casino operators.

One tool that's supposed to be available is a list from the federal government showing companies that are suspected of terrorist ties. But, as Steelman observed, Missouri has never received this list and, therefore, can't use it in making investment decisions.

One investment currently in question is a pittance, considering MOSERS' vast portfolio: an $80,000 invested with Arab Bank, which is being sued by relatives of terrorism victims, including a Missourian, in Israel. These relatives are claiming Arab Bank funneled money to Palestinian suicide bombers.

Joining in support of Steelman's request to withdraw the MOSERS funds from Arab Bank was state Sen. Jason Crowell of Cape Girardeau, who serves on the retirement system's board.

Steelman is right in saying MOSERS has an obligation to keep the money it invests out of the clutches of terrorists. And, indeed, there might be other guidelines that would keep some other companies from receiving funds from the state's retirement system -- although putting casino companies off limits doesn't seem likely, given the state's blessing of numerous casinos and the millions of dollars produced by gamblers each year for state coffers.

One thing Steelman could do to move the discussion along regarding MOSERS investments would be to share her own office's policies regarding investments. The state treasurer directs the investment of state receipts from taxation and other sources which, in turn, produce additional interest revenue that helps balance the state budget.

Missouri should not be supporting terrorism in any way, and it should err on the side of caution when in doubt. This is an issue that warrants further review with the hope that a workable policy to that end can be worked out.