
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 23, 1990                   TAG: 9005230262
SECTION: VIRGINIA                    PAGE: B-3   EDITION: STATE  
SOURCE: Associated Press
DATELINE: RICHMOND                                   LENGTH: Medium

WILDER DEFENDS DIVESTITURE

Gov. Douglas Wilder on Tuesday defended his South African divestment order against questions from Senate Majority Leader Hunter Andrews about whether the policy is legal.

Meanwhile, Republican legislators asked Attorney General Mary Sue Terry for an opinion on whether the governor has the authority to order divestiture.

Andrews, a Hampton Democrat, told Wilder last week the attorney general should decide whether the divestment order takes precedence over state laws that leave investment decisions to independent state boards and commissions.

"I was well aware when I executed the order that certain boards and institutions operate autonomously and, therefore, that they may make independent judgments as to whether they will follow my mandate," Wilder told Andrews in a letter released Tuesday.

Wilder last week ordered state agencies and institutions to sell stock in companies with substantial ties to South Africa. The order could lead to the sale of nearly $1 billion in stocks, primarily held by the state employee pension fund and colleges and universities.

Andrews said the divestiture order could jeopardize income for state retirees, but Wilder told him the order will be carried out "in a fiscally responsible manner."

Wilder also told Andrews he has asked Robert Schultze, his deputy chief of staff, to contact Andrews and other General Assembly leaders to get their ideas on implementing the policy.

Andrews had asked that legislators be included on the task force devising the policy, but Wilder's spokeswoman, Laura Dillard, said that group will be limited to members of the governor's staff and Cabinet.

Sens. Joseph B. Benedetti, R-Richmond, and Robert E. Russell, R-Chesterfield, asked the attorney general's office for an opinion on the governor's power over the boards and commissions, said Steve Haner, director of the Republican legislative caucus. Both senators represent large numbers of state employees who had questions about the policy, he said.

Burt Rohrer, spokesman for Terry, said the office would not comment until an opinion is released.

by CNB