Washington Week: Student Voices (O)

U. California regents unanimously approve Sudan divestment
By Keli Senkevich
The California Aggie (UC-Davis)
03/29/2006

(U-WIRE) DAVIS, Calif. - The University of California Board of Regents unanimously voted at its Mar. 16 meeting at UCLA to divest UC shares in companies with ties to Sudan, where the genocide of its residents continues in the Darfur region. The UC is the first major public institution to take such action.

Students in support of divestment celebrated the decision with an outcry of cheers after the vote was announced. UC students, including those associated with the UC Sudan Divestment Taskforce, had been pushing the regents to consider divestment from the African nation for several months.

The co-chairs of the student taskforce, Jason Miller and Adam Sterling, were invited to sit with the regents during the discussion and final vote on the issue.

Regent Adam Rosenthal, who initiated discussion on divestment in November, praised the involved students as well as the members of the regents' special committee that formulated to look into the issue. He also addressed the significance of the regents' decision.

"This is a historic day," Rosenthal said. "This is the second time in our 138-year history that the UC Board of Regents has said we're going to put human rights at the forefront of our agenda, and that is a bold statement."

Previously, in 1986, the regents pulled investments from South Africa as an attempt to economically influence the apartheid situation there.

Regent and Chairman Gerald Parsky commended the university's efforts to research the implications of divestment from Sudan.

"I think the university can be very proud in the way in which we've approached this situation," he said. "The proposal responds in a very measured and appropriate way to an issue that needs to be addressed by a leading institution."

The UC will pull investments from nine companies that offer the Sudan government some type of military or financial support. Those companies losing UC funds are Bharat Heavy Electricals Ltd., China Petroleum and Chemical Corp. (Sinopec), Nam Fatt Co. Bhd., Oil & Natural Gas Co. Ltd., PECD Bhd., PetroChina Company Ltd., Sudan Telecom Co. Ltd. (Sudatel), Tatneft OAO and Videocon Industries Ltd. The UC will not purchase any stock from these firms unless the company ceases to provide support to the Sudan government.

Letters of concern about the role of business revenue in contributing to the violence in Darfur will also be sent to Finmeccanica SPA, Harbin Power Equipment Co. Ltd., Lundin Petroleum AB and Schlumberger Ltd.

UC officials would not disclose the total amount of assets during the Mar. 16 public session, but they assured regents that divestment would not have a significant impact on the UC's overall portfolio. However, it is estimated that UC Sudan-related investments total about $4 billion.

In early 2003, attacks against military bases erupted in the western Darfur region, pitting the Sudan government against two armed rebel groups — the Sudan Liberation Army and the Justice and Equality Movement, which were responsible for the initial violence. Reports describe the situation as a conflict between the Arab-led government in Khartoum against its own non-Arab citizens in response to the rebel attacks.

The violence has affected innocent civilians, as 2.5 million have fled the area and about 180,000 are reported dead, according to United Nations officials.

The U.S. government declared the situation in Darfur as genocide in 2004, while the United Nations, European Union and African Union classify it as a humanitarian crisis.

UC divestment cannot proceed, however, until the California Legislature passes a law indemnifying the university and the individual regents for any legal action arising from their decision.

Also on Mar. 17, the regents announced that the office of the president would add three new executive positions to its staff. The individuals hired will handle financial issues in an effort to prevent any future mishaps concerning employee compensation and ensure that the UC is transparent in reporting earnings and bonuses.

A chief operating or administrative officer and a chief financial officer will work in the office of the president, and the UC Board of Regents will hire an independent officer to supervise the UC's adherence to its pay policies.

The next board of regents meeting is scheduled for May 17 and 18 at UC San Francisco. For more information regarding the Mar. 14 to 16 meeting, visit universityofcalifornia.edu/regents.

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