Friday, March 29, 2024

Sudan Tribune

Plural news and views on Sudan

Pension funds name Sudan-tied holdings

January 10, 2008 (AUSTIN) — The multibillion-dollar state pension funds for teachers and public employees have only a small percentage of their holdings invested in companies identified as doing business in Sudan, though some total millions of dollars.

The $114.8 billion Teacher Retirement System on Tuesday identified $62 million in six such companies. The $25 billion Employee Retirement System identified $3.5 million in one company.

Identification of the investments is part of a new state law on divestment of the pension funds from companies that do business in Sudan. The law is meant to exert pressure to stop atrocities in Darfur.

“The intent is to put public pressure on these companies, and I hope that it serves as a deterrent to any other companies that are inclined to do business in Sudan,” said state Sen. Rodney Ellis, D-Houston, author of the law.

Although the percentage may be small, Ellis said, “It is significant in terms of the impact that it may have on the discussion in Sudan and around the globe. Because Texas is a major state and the home of the sitting president of the United States, I think it makes a very profound statement.”

The retirement systems identified their holdings after state Comptroller Susan Combs last week, as required by law, identified companies with business operations in Sudan. The 27 she identified include a number of energy-related companies.

The Employee Retirement System identified an investment in Alstom, a power generation and rail transport company. The Teacher Retirement System identified investments in Alstom, Bharat Heavy Electricals Limited; Oil & Natural Gas Corp. Limited; Petrochina Co. Limited; Sinopec Shanghai Petrochemical Co.; and Wartsila Oyj.

The pension funds must next notify the companies that they may become subject to divestment.

Employee Retirement System Chairman Bill Ceverha said the new law does not require immediate action.

The Teacher Retirement System’s investment policy says if companies don’t “remedy their ties to Iran and Sudan,” divestment could occur if comparable investments offering similar quality, return and safety are available.

(AP)

Leave a Reply

Your email address will not be published.