US Senate votes Sudan divestment despite Bush opposition
December 13, 2007 (WASHINGTON) — The U.S. Senate gave a green light to a grass-roots effort urging investors to withdraw their funds from companies doing business in Sudan because of violence in its Darfur region.
Despite Bush administration opposition, the Senate approved legislation on Wednesday letting U.S. state and local governments, as well as mutual funds and private pension funds, divest their investments in companies involved in four Sudanese business sectors, including its oil industry.
Activists have pressed investors to divest their holdings in companies such as Malaysia’s state-owned Petronas, India’s Oil and Natural Gas Corp Ltd, and PetroChina Co Ltd, whose parent company, China National Petroleum Corp, is helping Sudan drill for oil.
The bill, aimed at pressuring Sudan’s government to end the violence in Darfur, now goes to the House of Representatives, where a vote is expected as early as next week.
A similar bill has already overwhelmingly passed the House. Its sponsor, Rep. Barbara Lee, a California Democrat, said on Thursday she was “thrilled” by the Senate approach. Lee said she was optimistic that the House would approve the bill, sending it to President Bush for signing into law.
It is far from clear that Bush will sign it. The State and Justice Departments have argued that the measure would interfere with presidential foreign policy.
Sudan has been the focus of grass-roots divestment activism because of the conflict in its Darfur region, which has taken some 200,000 lives since rebels took up arms against the government in 2003. Khartoum mobilized proxy Arab militia to help quell the revolt. The United States says the violence amounts to genocide.
The Save Darfur Coalition says the Sudanese government uses up to 70 percent of its oil revenues, generated mainly through foreign direct investment, to give arms and supplies to the Janjaweed militia accused of the killings in Darfur.
The Sudan Divestment Task Force, based in Washington, D.C., coordinates many of the divestment activities, providing research on Sudan-linked companies to investors and supporting campaigns at the university, state and local levels.
Some 20 U.S. states have initiated divestment efforts, but the Illinois effort was challenged in court.
The federal legislation, authored by Sen. Christopher Dodd of Connecticut, seeks to provide a legal framework. Dodd is seeking the Democratic presidential nomination.
The Senate bill permits divestment from companies involved in Sudan’s oil industry, mineral extraction, power production, and the production of military equipment. It also requires federal government contractors to certify that they are not involved in business in those areas.
U.S.-based Capital Research & Management Co, Lazard Asset Management Co Ltd, and Blackstone Asia Advisors Ltd, were among the top 10 largest institutional holders of ONGC shares as of the end of September, according to Reuters Company Views.
The same data base showed Capital Research & Management Co, Barclays Global Investors NA and Vanguard Group Inc were among the top 10 investors in PetroChina Co Ltd, joined by units of California-based Franklin Templeton Investments and FMR Corp, better known as Fidelity Investments.
(Reuters)