Spring Break
Idaho makes moves to stop Sudan's genocide
Nathan Thomas
Issue date: 5/7/07 Section: BizTech
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The killings have become a common occurrence in Darfur – the western Sudanese area is about the size of Texas.
Government-backed Arab militias, known as the Janjaweed, continue to kill the mostly-black African rebels and civilians of Sudan.
The country has been periodically warring for several previous decades. This most recent conflict, sparked in 2003, has claimed more than 200,000 civilian lives and caused an estimated 2.5 million refugees to flee from their homes in the Darfur region. Both Congress and President Bush have declared it genocide.
The battles are fueled, in part, by a flood of money arriving from foreign companies doing business in Sudan. Urged by high annual returns, hundreds of businesses have invested
millions of dollars in Sudan. Much of this money goes right back to the war effort. It is estimated that 70 percent to 80 percent of Sudan’s oil revenue is going to Sudan’s military and militias.
Though United States companies are generally not permitted to do business in Sudan, many Americans invest in foreign companies that are involved in Sudan.
Many Americans have been outraged to learn that their mutual funds and retirement plans are fueling the Sudanese military.
Numerous investors are calling for Sudan divestment (withdrawing investment from the companies in Sudan) to discourage Sudan from continuing the bloodshed. Several states (including California, Colorado, Connecticut, Illinois, Iowa, Maine, New Jersey, Oregon and Vermont) have divested their pension plans from the companies doing business in Sudan.
Idaho is one of the states that is currently considering divestment. The Public Employee Retirement System of Idaho (PERSI) has debated divesting its funds. PERSI has 115 thousand people whose retirement savings are managed. Of the $11 billion pension fund, $41 million is invested in foreign companies that are currently doing business in Sudan.
Outraged members have been speaking out against PERSI’s investment.
Retired Boise lawyer John Sullivan has been especially vocal about encouraging divestment. Sullivan is the Idaho representative for the Washington, D.C.-based Sudan Divestment Task Force. He has criticized PERSI for not taking
immediate action.
“There is a saying in the law: justice delayed is justice denied,” Sullivan said. “These companies are documented as financially, and in some cases militarily, enabling genocide.”
PERSI board members remain divided regarding the issue. PERSI administrator Alan Winkle discourages the divestment. He recently spoke to “Boise Weekly” about his view.
“This is other people’s money, and the board is the fiduciary,” Winkle said, “So should they be using trust fund money, other people’s money, to address international social issues, human rights issues in another country?” Winkle later added that divestment in Sudan was a slippery slope to divestment in other areas.
In contrast, PERSI chairwoman Jody Olson, has spoken in support of possible divestment.
“It’s a horrible, horrible situation – uniquely horrible, and perhaps can be affected by our participation,” Olson told the “Idaho Statesman.” “We will either divest or find out why we can’t.
We certainly don’t support genocide.”
In February, PERSI passed a resolution to further discuss the divesting. Sullivan was not optimistic about the board’s progress. He believes that PERSI isn’t taking the issue seriously enough.
“PERSI’s disappointing resolution does not go nearly far enough to really consider this issue,” Sullivan said. “I have not come across one retiree or one PERSI member that has yet to tell me we should stay invested, they’re all outraged by this and that outcry is starting to be felt.”
Sullivan said that divestment has worked in the past. He refers to the Sudanese government stopping the 20-year war after three oil companies prepared to close down their existing operations. Sullivan said about 70 percent of those company’s royalties were going to fund military operations.
A large portion of today’s conflict is funded by the oil companies. PetroChina is buying 60-70 percent of Sudan’s oil.
In addition, China’s Sinopec Shanghai Petrochemical, Swedish energy investigation company Lundin, Britian’s Rolls Royce Group, Malaysian gas and oil company Petronas and French turbine maker Alstom are all contributing.
The Sudan Divestment Task Force has encouraged people to be aware of their investments.
Viewing Comments 1 - 1 of 2
Joe
posted 5/08/07 @ 10:45 AM EST
Why is it that the US is the only country which is pounding the genocide button? The UN investigative team denied that killings were being carried out as part of a genocide. (Continued…)
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