CHICAGO -- The Michigan Senate on Tuesday voted to repeal three laws that prohibit the state from investing in South African companies or in entities that do business in South Africa.
The bills will now move to the House, where they are expected to pass, according to Nancy Taylor, a spokeswoman for House Co-speaker Paul Hillegonds, R-Holland.
"I believe there will be fairly substantial support" for the bills, Taylor said. "But I'm not sure when [the bills] will be taken up."
Two of the divestiture laws the Legislature passed in 1988 prohibit investments by state pension funds and state universities.
The laws do not prevent Michigan from doing business with firms that do business with South Africa, according to an aide to the Senate Finance Committee. "It was purely an investment issue," the aide said.
The third law prohibits the state from depositing funds in banks that do business with South Africa.
States and local governments across the country are now reviewing their laws on investments in South Africa or doing business with firms that do business there. The move comes after progress has been made in eliminating apartheid and developing a more representative government in South Africa.
This week, for example, three investment banking firms with South Africa business connections were allowed to join a syndicate bidding for Los Angeles Department of Water and Power bonds.
On Oct. 5, the department lifted its two-year-old prohibition against doing business with firms with ties to South Africa. The move followed a Los Angeles City Council decision to work with businesses that have ties to South Africa in recognition of the country's efforts to dismantle apartheid.
