Providence, RI becomes first US city to Divest from Sudan
April 6, 2006 (PROVIDENCE, Rhode Island) — The Providence City Council voted to pull its money out of companies that do business in Sudan, becoming the first American city to divest from the African country.
The city council voted 13-0 in favor of the ordinance on Thursday. “Most people in America have never witnessed this kind of crimes against humanity,” said Councilman Migueal Luna, a co-sponsor of the measure.
The United States and other nations say genocide has occurred in the Darfur region in western Sudan, where at least 180,000 people have died – some estimates are far higher – and some 2 million have been displaced since the start of a 2003 revolt by ethnic African rebels.
The Arab-dominated Sudanese government is alleged to have responded to the revolt by unleashing Arab militias, known as the Janjaweed, who carried out sweeping atrocities against ethnic African villagers.
Several states, including Maine, Illinois and New Jersey, have pulled their investments from companies doing business in Sudan, and several universities have also divested, including Brown University in Providence. The Rhode Island state legislature is considering taking similar action.
“I sincerely hope this inspires cities across the country to do the same,” Luna said.
The ordinance requires Providence to pull money in its pension fund from companies that provide the Sudanese government with money or military equipment, offer little benefit to civilians and participated in genocide or did little to halt it.
Councilman David Segal said the ordinance would most likely result in the city pulling its $800,000 investment in the French telecommunications company Alcatel SA (ALA).
Alcatel is on a “noncompliance” list of companies doing business in Sudan put together by KLD Research & Analytics. The Boston-based investment research firm put together the list for the state of Illinois and other clients interested in divestment, spokeswoman Karen Myers said.
Charlie Guyer, a spokesman for Alcatel, did not return phone calls seeking comment.
Segal said he felt compelled to take action because the federal government is too busy with the war in Iraq to intervene in Sudan and no other country is likely to.
“We want to do what we can to mitigate what is happening there,” Segal said.
While Providence appears to have only one investment in Sudan, the ordinance also would bar the city from putting money into companies that do business there in the future, said Scott Warren, a spokesman for Students Taking Action Now: Darfur, or STAND.
Luna noted that divestment in the 1980s helped bring an end to apartheid in South Africa.
“We can do the same now to stop genocide,” he said.
(ST/AP)