US Idaho activists renew effort to force Sudan divestment

February 16, 2008 (BOISE, Idaho) — State lawmakers are weighing a renewed effort to force Idaho’s $11.3 billion public employees pension fund to dump millions in investments in companies that do business in Sudan, part of a national effort to pressure the African country to stop violence in Darfur.

Activists packed a Friday hearing before the Senate State Affairs Committee to urge passage of a bill that targets $24.3 million the Public Employee Retirement System of Idaho has invested in six foreign companies with ties to oil-rich Sudan. An estimated 200,000 people have been killed and 2.5 million have been forced from their homes in the conflict since 2003.

Idaho lawmakers killed a similar bill last year, but supporters say the environment and political stakes have changed in the last year.

For example, they say a number of states have passed similar laws since last January. President Bush also signed legislation on Dec. 31 to allow states and local governments to adopt divestiture laws.

Dan Millenson, the national advocacy director for the Sudan Divestment Task Force in Washington. D.C., also told lawmakers that the campaign is having an impact and pressure is increasing on the Sudanese government. He said nine companies have already ceased or altered operations in Sudan, including some that have cited the divestment movement.

“We believe divestment to be inappropriate 99 percent of the time,” Millenson said. “It’s a unique combination of factors – the extremity of the violence and the fact that we know we can affect these companies.”

Supporters still face a challenge swaying Idaho lawmakers, who argued that fund managers should be allowed to make investment decisions based on sound financial grounds, not social policy. Some also wonder whether divestment is an effective tool.

Sen. Mike Jorgenson, R-Hayden, noted the approach was used to pressure the government in South Africa during apartheid, but he contended it only ended up hurting people suffering under the oppressive regime.

Millenson countered that the bill is targeted only at companies that are supporting the Sudanese government and he noted the regime relies heavily on foreign direct investment. Divestment would not affect agricultural, medical and consumer goods companies, he said.

Supporters who spoke at Friday’s hearing called it a moral issue.

“It saddens me to think that we are contributing to the death of children just like the ones I taught,” said Nita Sherrill, a retired first grade teacher from Nampa.

After the hearing, Alan Winkle, the pension fund executive director, told The Associated Press that retirees fall on both sides of the issue. So far, the fund has received letters from seven employee groups objecting to divestment.

Divestment will hurt the fund overall, he said, and provide no guarantees of provoking change in Sudan.

“Will anything change? That’s our issue,” he said.

After pressure from some retirees last year, pension fund officials made adjustments to the state’s 401(k) retirement plan to allow employees to select a special, Sudan-free investment fund.

There are roughly 115,000 public employees and 700 employers covered by the fund.

Testimony will continue before the Senate State Affairs Committee on Feb. 20.

(AP)