Rasheed Shabazz via Afrikan Black Coalition
The University of California has sold approximately $25 million worth of indirect investments in private prison corporations after the Afrikan Black Coalition, which encompasses UC’s nine Black Student Unions, revealed in November that the University held shares in private prisons.
The Afrikan Black Coalition (ABC) issued a resolution Thursday demanding that UC divest from private prisons and companies that support private prisons. Later on Thursday, a spokesperson from the UC Office of the President (UCOP) confirmed the University’s shares in private prisons, which were part of a broader portfolio, had been sold on Dec. 1.
UCOP’s Director of Media Relations Dianne Klein said after ABC announced in November that UC had $25 million invested in private prisons, the University decided to sell its shares in the companies.
“The students brought this to our attention, and based on that, we looked at our investments in private prisons, which total less than $30 million, and we decided to sell them — they are gone,” Klein said.
Klein said UC does not issue statements on divestments, but does routinely review its investments, totaling $91 billion, to see if they are financially sound.
“We see the issue of private prisons as: Is that really sustainable? Is that going to make us money in the long term? And we don’t think so for these social reasons,” Klein said. “From a risk perspective, it didn’t make sense to hold on to these assets.”
UCSB alumnus and Political Director of ABC Yoel Haile said UC’s investments in private prisons supported a system that disproportionately harms poor people and people of color.
“[The investments were] a practical example of how the UC system doesn’t value black lives or immigrant lives or poor lives because it is underwriting an enterprise that is systematically targeting our people,” Haile said.
Haile said there is a contradiction between UC’s public stance and the corporations in which it is invested financially.
“When the UC system is the largest public institution in the country and is investing millions of dollars into [private prisons] … the message is obviously that you support this because, even if you say rhetorically that you don’t, your money is speaking,” Haile said.
Haile said ABC members have been speaking with UCOP Chief Investment Officer of the Regents Jagdeep Singh Bachher since August, and are hopeful that his office continues to work with the coalition on its additional demands, which include issuing quarterly investment reports and divesting $425 million from Wells Fargo, which owns shares in private prisons.
“[Bachher] has stated that he wants to partner with us, and we hope that he becomes a good partner in this matter,” Haile said. “We really hope that the UC does the right thing. And if it doesn’t, then it’s going to have to deal with black students.”
UCSB Chancellor Henry T. Yang said he was looking forward to discussing the issue more with students in the future.
“I appreciate the Afrikan Black Coalition and the Black Student Union bringing up this current issue, and we look forward to having more dialogue and discussion with our ABC and BSU students … at upcoming Regents meetings,” Yang said in an email.
UCSB Black Student Union Political Chair and fourth-year environmental studies major Nia Mitchell said she sees this as one step toward a larger goal.
“We’re getting the ball rolling,” Mitchell said. “I think this is just the beginning of seeing what black unity and solidarity among people of color can do for the equity of all of our people.”
It is sad to see people USA are divided by colour, ethnicity. We are in 2015. Why we can’t bring USA one country,one human race, one rule for all. All educational institutions must be service providers, and not money making factories, collecting money from students and issuing certificates. Most of the case it is selling certificates not worth the paper it is written. We need good citizens poor or rich, educate them free, it is an investment for better people for tomorrow . USA have to change, change rapidly, teach human values from the day a child is born. We… Read more »
Paddy, the world is divided over race, culture, and colour. The US, is hardly alone. I applaud these young people for attempting to fix an economic thread to injustice.
Wake up Paddy.
“Why we can’t bring USA one country, one human race, one rule for all.”
Statements like these come from a place/life experience of privilege. Might want to make room for a little introspection there.
I am so proud of the students for staying on task for a great goal. Thank you for reporting it.
I’m a UC San Francisco student, and I’m so glad to see UC using their funds and influence to divest from private prisons. I hope they put out a press release and are otherwise making it public to inspire other institutions to do the same.
CONGRATULATIONS UC- for making a great decision on divesting from these investments which do not in the end serve the best interests for our citizens- all- not just black! You did it before with the gold and other investments in Africa during Apartheid! It makes me personally proud and is an example for other institutions to follow through and to “Do the right thing”!
I am grateful to see our students taking a stand. Continue in unity – very proud of you!
This is long over due and we shouldn’t support any education institution profiting off prisons.
Happy to see the university system I graduated from making this move, but I’m sad to see that their ultimate consideration was the bottom line. As a public university, they should be in the practice of making not just profitable investments, but ones which are also socially responsible and shape a future that is beneficial to the general public.
Amen, Steven Thompson. I thought the same as you, though with different and angrier language. There is a thin line between manufactured dissent, which our educational system should produce in students if they’re doing their job, and inciting to radical action. I imagine someone or a group at the UC system had this think-tank policy in mind for just that reason. And it saddens me deeply to realize that no matter the level of education, there are people working like mad against the students who are buying their degrees.
What is sick about this is the Arian Americans do not want to talk about this MASS INCARCERATION EVIL1-3.
It means supremacy is still arrogant and unrepentant because of greed, lust, or mammon. St. Matthew 6:24
The plantation seer
Anonymous, where is your name?
I don’t think you know what anonymous means
Congrats young people. Thank you for your courage.
Hats off to these conscious young men and women. We need more and more of you to bring to the attention of those in YOUR employ wrongs being committed.
Thumbs down on a university that does not care enough about the planet to review their entire portfolio to clear out any investments that negatively contributes to our society and planet. Their carefully worded announcement exposed the cold blooded calculations used to make their decision.
Where is their conscience? Oh, yeah. They have none.
Although there are issues with how prisons are run and who is imprisoned, please note that most prisons are run by municipalities and are largely inefficient and costly. Private run prisons are much cheaper to run than publicly run prisons — thus saving government money and allowing the savings to be allocated towards better community needs/organizations. I believe it is important to divest out of investments with a clear negative externality; however, in this sense you’re simply making things difficult for a company that provides the same service at a lower price. It is not private prisons that are promoting… Read more »
wrong. privatizing for-profit prisons incentivizes increased incarceration. the prisons and associated prison guard unions use their extremely powerful lobbies to influence public and criminal justice policies in favor of incarceration for primarily non-violent, drug offenses. these policies and the agents who enforce them disproportionately target communities of color. this modern day slavery, enshrined by the 13th amendment’s provision for prison labor, cannot be whitewashed by capitalist claims of economic efficiency…
http://racism.org/index.php?option=com_content&view=article&id=1404:may041202&catid=137&Itemid=155&showall=1&limitstart=
pfft
Silly u…Do u really think that will change the behavior of inner city black kids, young boys mainly? It is NOT the “profit motive” that us incarceratinng them, it is their BEHAVIOR…If u can’t do the time, don’t do the crime..BASICS. This is NOT South African Apartait whatever they tell u inschool theze days. GO OUT AND TEACH YOUR BROTHERS HOW TO STAY IN SCHOOL and DO WHAT U HAVE DONE!
FYC.
http://godissgoys.tumblr.com/post/25742627909/the-secret-meeting-that-changed-rap-music-and
Everyone knows behavior can be influenced.
I’m glad someone said it, in the overly PC times. Apparently,personal responsibility just doesn’t exist anymore. It is always the system’s fault; not mine.
If you didnt know, ita systematic oppression that truly contributes to the psychology of minorities period. People know that in some areas, brown and black kids are “lazy” aka feeling a sense of hopelessness in a world that deems this as worthless anyway. We work to uplift people everyday. But in order to fix the problem, systematic oppression and racism needs to be addressed and attacked in any plausible way possible for us to do some real change. These students serve as an example.
Proud Alum, every day, but especially today!
My son attends UCRiverside and I’m so proud that the Universities have divested from profiting from the prison system. Way to go!
http://afrikanblackcoalition.org/2015/12/18/afrikan-black-coalition-accomplishes-uc-prison-divestment/ After months of research, conversations with the University of California and steady pressure from the Afrikan Black Coalition against the UC’s complicity in the prison industrial complex, ABC confirms that the UC has begun selling all their shares in private prisons. This victory follows an initial November press release from the Afrikan Black Coalition announcing the University of California’s investments in private prisons and a unanimous vote from Black Student Unions calling for divestment from private prisons and their financiers. ABC Political Director, Yoel Haile, states: “This victory is historic and momentous. Divesting $25 million is a good step… Read more »
Hmmm… Interesting.
I wonder how many of them hold WF Bank accounts, or have families with. Are they starting with shifting their peers?
& All of the major banks have major dirt on their hands; idk why they’d choose WF first.
Thank you for divesting from investing in for profit prisons, U of C.
I am a college instructor who believes that no institution of higher learning should invest in that highly corrupt enterprise.
Now yall understand the pipeline from grammerschool to prison detours by universities to prison just in an investment sence. If you do a national search you might find that far more universities and colleges, especially state colleges are doing the same thing. I have long said that slaves caused white universities to flourish as a result of slave profits in america and we paid forvwhite peoples free tuition through white slave owners donations to those white institutions. Yet we are forced into payback loans because most of us left with heavy debt and no career jobs with income commensurate with… Read more »
I can’t “decifer” most of this post
“Heavy debt and no career jobs…” Well, if the majority of the students of color majored in something other than African American Studies, you might be able to get a real job. Same thing with bull crap Liberal Arts degrees.
$91 Billion??!!
question: Who bought the shares??
My question exactly. The divested shares were sold to someone, they don’t just disappear. The financial markets function through buyers and sellers( these shares,(CXW)I believe, are part of the NYSE. Divestment is selling to a buyer. So…someone or some other institution purchased shares of CXW. Also, what did UC purchase in place of the prison investments? The money from the divested shares is not sitting in a shoebox somewhere.
I am so proud of you all for not only being conscious aware of this great threat (PrivatePrison Industry) to the advancement and demise to humanity, but also taking positive actions to resolute this issue at your own education institution…I urge you to contact your allies and have them to replicate your actions…Keep up the good work…Roderick Casey Sr, Ypsilanti Michigan
While I agree schools should not be involved with prisons period. Please don’t forget the flip side of this… As I type, the incarcerated are being transferred to non-private prisons, we are going to have over crowding and all the issues that come from that, like, illnesses due to unhealthy living conditions.
Jah love. Congratulations to UC system for divesting endowment money from private prisons. I am black, Ayiti descent woman who is also a proud alumnae of UC Berkeley. I am so happy that the black student union took up this very important issue. Let’s hope and pray that other universities follow this lead. I wish that I had been more engaged with this student union when I was a student. Please reach out and involve students who are currently enrolled at the UCs as well as the alumni. I wanna get emails and letters from you all about what’s going… Read more »