KX News reported last week that the State Investment Board (SIB) has liquidated a Legacy Fund investment in Alibaba, the controversial Chinese company, and the largest fiscal year 2020-21 foreign holding in our $8 billion Legacy Fund.
According to out-of-state consultant José Morales of Axiom Investors, Alibaba was illegally collecting consumer data, and the People’s Bank of China was trying to take the data for its own use.
Now, KX News has uncovered another red flag foreign investment.
In October of 2021, KX News filed a Freedom of Information Act (FOIA) open records request for the Legacy Fund fiscal year 2020-21 foreign holdings. Between June 30, 2020, to June 30, 2021, the Legacy Fund had nearly $1 million invested in the China National Offshore Oil Corporation (CNOOC).
The CNOOC has been sanctioned by the U.S. government for its ties to the Chinese military. Former President Donald Trump and now President Joe Biden have both placed the company on the official list of companies “blacklisted” by our government.
The Commerce Secretary under the Trump administration, Wilbur Ross, said the CNOOC: “acts as a bully for the People’s Liberation Army to intimidate China’s neighbors.”
KX News obtained an audio recording of the Jan. 28 SIB meeting where Morales advised the 11 member SIB to avoid investments tied to the Chinese military.
“Any company that’s working with the Chinese military, boy, these are red flags because what you need, what you want to avoid is, again it goes back to, it’s not just finding companies you want to invest in, it’s what you want to avoid. You don’t want to wake up one day and these companies show up on the U.S. blacklist.”