(The Epoch Times)—Two Oklahoma officials are concerned that a state retirement system’s overseers may have tailored a proposal request (RFP) to favor an investment firm that allegedly boycotts oil and gas companies.
Oklahoma State Treasurer Todd Russ and Auditor and Inspector Cindy Byrd are concerned that the RFP gave BlackRock Investments responsibility for 60 percent of the Oklahoma Public Employee Retirement System’s (OPERS) assets—approximately $7 billion— in possible violation of state law.
BlackRock is on a list of companies barred by state law from handling state funds because it boycotts oil and gas companies. The oil industry has been a driver of Oklahoma’s economy for over a century.
State Street, another firm handling state funds, is also on the prohibited list. But it hasn’t drawn quite as much attention as its larger competitor.
This may violate the Oklahoma Energy Discrimination Elimination Act of 2022 (EDEA). The law prohibits state investments from being handled by any firm that boycotts oil and gas producers.
BlackRock representatives did not respond to an email from The Epoch Times. However, in a letter to the Oklahoma Treasurer’s office, BlackRock Senior Managing Director and Vice Chairman Mark McCombe said BlackRock is focused on its responsibility to its clients.
“BlackRock does not boycott energy companies,” Mr. McCombe wrote in the letter.
According to the letter, BlackRock has $319 billion invested in public energy companies worldwide, with $15 billion invested in Oklahoma. More than 90 percent of that is “invested in traditional energies like oil and gas.”
There are indications that the investment firm is separating itself from ESG investing. In recent weeks, BlackRock has stopped using the term. In a report released in August, BlackRock reported backing 7 percent of ESG proposals at company meetings in the 12 months to June, a sharp drop from last year when it supported 22 percent and 2021 when it voted in favor of nearly half.
In the letter, Mr. McCombe pointed out that ESG policies are a reality and that there is a trend of increased government regulation and consumer demand for alternatives to carbon-based energy.
“As fiduciaries, we advise clients on major structural trends that we believe may impact their portfolios. One such trend is the change in government policies, technology, and consumer preferences associated with the transition to a low-carbon economy,” the letter reads. “Our investment decisions are governed strictly by our fiduciary duty to clients, and that duty requires us to prioritize our clients’ financial interests above any commitments or pledges not required by law.”
But Mr. Russ and Ms. Byrd say their concerns go beyond the EDEA law and boycotting oil companies. The pair also questioned the RFP process at the Oklahoma State Pension Commission meeting on Sept. 12. The commission oversees several state pension and retirement funds.
After that meeting, Joseph Fox, OPERS executive director, promised to explain why BlackRock was selected.
Mr. Fox did not return an email from The Epoch Times. However, he did send information to Mr. Russ and Ms. Byrd. In a memo dated Aug. 23—the same day the commission voted to hire BlackRock—Mr. Fox wrote that BlackRock most closely met the requirements set by OPERS for the investment work.
OPERS Claimed Exemption
He wrote that OPERS claimed an exemption under the EDEA law based on its “fiduciary responsibility” to the state employees whose funds are being managed.
“A state governmental entity shall not be subject to any requirement of this act if the state governmental entity determines that such requirement would be inconsistent with its fiduciary responsibility concerning the investment of entity assets or other duties imposed by law relating to the investment of entity assets,” the EDEA exemption reads.
According to the OPERS memo, divesting would cost at least $9.7 million in fees and other costs.
“It is conceivable that the total loss in market value experienced by the plans due to these actions could potentially be multiple times that of the estimated costs stated above,” the OPERS memo reads.
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But Mr. Russ said the exemption claimed by OPERS does not apply. He claimed the RFP was written to eliminate most of BlackRock’s competition.
RFP Process ‘Tightened’
Mr. Russ said “rigged” was too strong for the RFP process. But, he said it did appear OPERS officials had one company in mind.
“The RFP within itself wasn’t a problem. They tightened up the RFP to meet the current constituent and investor,” Mr. Russ said.
Ms. Byrd was less diplomatic in her assessment.
“In the auditing world, we do call that practice ‘bid rigging,’” she said.
On Sept. 14, Mr. Russ sent a letter to Mr. Fox and the OPERS Board of Trustees outlining three concerns. Based on those, Mr. Russ wrote, the OPERS board should have selected another firm or sought more applicants.
Mr. Russ sent copies of the letter to the Speaker of the Oklahoma House of Representatives, Rep. Charles McCall, Oklahoma Senate President Pro Tempore Sen. Greg Treat, and Oklahoma Attorney General Gentner Drummond.
Neither Mr. McCall nor Mr. Treat returned calls seeking comment. Phil Bacharach, a spokesman for Mr. Drummond’s office, said the Attorney General had no comment.
In the letter, Mr. Russ wrote that rather than spread the state investments among different managers to reduce risk; the OPERS board kept more than half of the pension funds under BlackRock.
His letter claims five of the eight funds had low or no switching fees. To determine the costs for the last three would require a complete RFP process, which Mr. Russ claims did not happen.
He wrote that respondents were given only three weeks to present their proposals in this case. Mr. Russ pointed out that previous RFPs allowed up to six weeks for a response. He claimed that OPERS summarily decided to keep BlackRock without fully considering the competing firms.
Finally, he wrote that the decision to retain BlackRock’s services violated OPERS fiduciary duties because of BlackRock’s commitment to ESG principles.
“Companies like BlackRock and State Street have openly made commitments to use all assets under management—including OPERS’ assets—not for the benefit of OPERS, but for their own ideological objectives,” Mr. Russ wrote.
Bill Pan contributed to this report.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
ill be glad when Americans start hunting down blackrock execs and summarily executing them
Simple. The ‘Oklahoma Officials’ are from the very same cloth as the FEDERAL GOVERNMENT OFFICIALS and just like ‘them’ do nothing for their paycheck except STEAL.
Takes a real HUMAN BEING, with INTEGRITY (a joke at the FED level) to become a valued STEWARD of ‘others’ monies. The ‘Oklahoma Officials’ should be MANDATED to make the FUNDS WHOLE because of their very own MALFEASANCE. If this ever came to reality, perhaps, just perhaps, we would get decent governance for a great BIG change.
When I was a child leaders seemed to lead. Then I watched JFK get killed by ‘them’. This was the beginning of what Donald John Trump is dealing with TODAY: THE TRUMP FEAR FACTOR- if he gets in WE THE PEOPLE will get to smile again…at the JAILING OF THESE FUCTS.