LOS ANGELES : Harbor Commission Votes to Drop S. Africa Policy

Following in the footsteps of the Los Angeles City Council, the Board of Harbor Commissioners has voted unanimously to end its policy of not doing business with companies with financial ties to South Africa.

The policy, which divested city pension funds from South African investments and forbade departments from contracting with companies doing business there, took effect in August, 1986.

As part of the City Council’s action last month, all city departments were instructed to stop complying with the city’s anti-apartheid ordinance.

Though the policy had diverted tens of millions of dollars away from companies with financial ties to South Africa, it also had numerous loopholes and was circumvented by various departments--including the port--3,549 times in the past seven years.

If a business with investments in South Africa submitted a bid for work that was at least 10% lower than the next best bid, port officials typically waived the policy.