Maryland Lt Governor urges divestiture of Sudan investments
March 21, 2006 (ANNAPOLIS) — Maryland Lieutenant Governor Michael Steele asked state pension system managers Monday to withdraw $1.9 billion from investment funds that hold stocks of companies that do business in Sudan to protest what he called “some of the most egregious human rights violations our nation has ever been witness to.”
“Human slavery, mutilations, rape, homelessness, death by starvation and outright killings of non-Arab black Africans in Darfur, at the direction of the Sudanese government, can only be described as genocide,” the Republican lieutenant governor said.
Steele was joined at a news conference outside the State House by Democratic Delegate Salima Siler Marriott of Baltimore, who is the sponsor of a bill that would require the sale of all pension fund investments in foreign companies that do business in Sudan. The federal government already prohibits American companies from investing in the troubled African country.
The board of the Maryland State Retirement and Pension System has total investments of about $34.6 billion, according to Thomas Lee, executive director of the retirement agency. The board opposed Marriott’s bill last year, but has not taken a position on it this year.
Lee said most of the pension fund’s investments are in index funds, which have large holdings in multinational corporations that may have investments in Sudan.
At least 180,000 people have died and some 2 million have been displaced since the start of a 2003 revolt by rebels from Darfur’s ethnic African population. The Arab-dominated Sudanese government is alleged to have responded to the revolt by unleashing Arab militias, which carried out sweeping atrocities against ethnic African villagers.
Steele said the $1.9 billion in investments that he wants the pension system board to sell include holdings in four areas – aerospace and defense, oil and gas, industrials and communications. He called it the first step toward selling off all Sudan-related investments and putting the money into other funds.
The cost of transferring money to new investments would be minimal, Steele said.
Marriott said she fears her bill is on “life support” because the hearing will not be held until Wednesday, with less than three weeks left in the legislative session. She said she hopes Steele’s support will help persuade lawmakers to support the bill.
The Maryland State Retirement and Pension System pays for retirement benefits for state employees and teachers and is governed by a board of trustees that includes five members appointed by the governor, five elected by employees, the state comptroller, the treasurer and the budget secretary.
(AP/ST)