FOR IMMEDIATE RELEASE
Sen. Kruse checks progress of state’s Darfur divestments
STATEHOUSE – Indiana this week moved closer to eliminating retirement fund investments with companies doing business in Sudan, according to State Sen. Dennis Kruse (R-Auburn).
Kruse championed a new 2007 state law prohibiting the investment of moneys from the Public Employees Retirement Fund (PERF) and the Teachers Retirement Fund (TRF) in Sudan, because the nation is supporting genocide in Darfur.
As chair of the Senate’s Pension Management Oversight Commission, Kruse this week called for an update on the act’s implementation and found his concern in authoring the bill was justified. Lawmakers learned that a state-commissioned study had revealed as much as $14 million in PERF and TRF investments with five companies doing business in Sudan.
“I’m pleased they are moving ahead with steady seriousness,” Kruse said. “I think they’re on track to divest of all Sudan holdings on schedule. This commission is determined to stay on top of the issue and make sure Indiana has no ties to genocide.”
Andrea D.B. Unzicker, general counsel of the Public Employees Retirement Fund, assured Kruse’s committee that divestment preparations were proceeding for both funds.
“As required under statute, we will report our progress to the Legislative Council at the end of October, by which time we anticipate that Institutional Shareholder Services will have assembled our list of scrutinized holdings and initiated the letter writing campaign,” Unzicker said.
According to Unzicker, any divestment may commence at the beginning of 2008, following a 90-day period each company has to cease active operations in Sudan.
Unzicker said action on the divestments will become clearer in early 2008.
“Once the list has been finalized, the pension funds are to contact the scrutinized companies in writing and inform them that they must cease active operations in Sudan within 90 days or be subject to divestment by the fund,” Unzicker told the commission. “In addition, semi-annual letters must be written to scrutinized companies with inactive operations in Sudan, to inform them that if they were to engage in active operations, they would be subject to divestment by the fund as well.”
The commission learned both PERF and TRF have selected Institutional Shareholder Services to research what companies have potential ties to Sudan. This company will cross-reference a list of fund holdings and compile a list of scrutinized companies held by each pension fund.
“Each fund has nine months to divest of at least 50 percent of its scrutinized holdings and 15 months to divest of 100 percent of such holdings,” Unzicker said.
Indiana was the ninth state to legislatively target Sudan investments. Four others have since followed.
Wednesday’s meeting was unexpectedly moved to the Indiana Supreme Court chambers due to ventilation problems elsewhere in the Statehouse. Kruse thought it was an appropriate setting in the eyes of those who seek justice for the Darfur conflict in western Sudan – one that has been called a humanitarian catastrophe.
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