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The Honolulu Advertiser
Posted on: Wednesday, February 21, 2007

Genocide in Darfur demands state divest

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The atrocities of the genocide in Darfur are clear, and the numbers are chilling. Congress estimates that up to 400,000 people have been killed by the government of Sudan and its Janjaweed militias — with millions more terrorized and displaced from their homes.

So it's easy to understand the push in the Legislature to have the state retirement fund divest itself of investments in companies tied to the Sudanese government. A clear message must be sent in this regard.

House Bill 34, introduced by Rep. Roy Takumi, D-36 (Pearl City, Momilani, Pacific Palisades), sets up a responsible way to divest public pension monies invested in the Sudanese government, or its government-funded companies, including the government-run oil industry.

It would not affect companies involved in the country's social development.

After a review, the state would give companies found to have links to the Sudanese government 90 days to change course. If a company fails to do so, funds would be gradually withdrawn until all state pension dollars are removed.

In the case of our state Employees Retirement System, worth $10.7 billion, that investment could amount to tens of millions of dollars, said David Shimabukuro, ERS administrator.

U.S. policy prohibits American companies from doing business in Sudan. But American companies can and do invest in foreign companies — primarily Chinese and French — that do.

That has rightly fueled the divestiture movement, with California and five other states that have passed laws shutting off investments.

Beyond the bill, the issue also raises the question of whether there is a need for a general investment policy that addresses the issue of investments in companies with egregious human rights violations.

Takumi agrees. "The days of investing money just to get the highest return are gone."