US Arizona passes Sudan divestment bill

February 28, 2008 (PHOENIX) – The two chambers of the US Arizona state on Wednesday have adopted a bill requiring the state pension funds to sell off any investments linked to Sudan , the local press reported.

The bipartisan divestiture measure seeks to shift stock the state holds away from foreign companies that are linked to Sudan — specifically in oil, mineral, power and weapons sales.

Whoever, the state would be required to divest only if doing so didn’t end up costing any money, a matter that led to criticism of the bill. In addition, the bill doesn’t apply to mutual funds.

State Rep. Sam Crump, R-Anthem, sought unsuccessfully to amend the bill last week. But its prime sponsor, state Rep. Kyrsten Sinema, D-Phoenix, said if the bill were reworded to potentially cost the state money it would lose support and might be found unconstitutional.

In the end, Sinema’s bill passed unanimously with Crump’s support.
Advocates of the bill and an identical one in the state Senate say they are looking to put pressure on the Sudanese government, which is accused of arming a militia in the region of Darfur.

At the end of the last year, President George Bush signed into a law the “Sudan Accountability and Divestment Act of 2007” passed by the Congress.

The bill aims at providing protection from lawsuits to State and local divestment efforts in Sudan to sanction it over the Darfur crisis labeled genocide by the US administration.

The bill also allows asset managers to divest from foreign companies operating in Sudan without being deemed in violation of their fiduciary duty.

(ST)