Divesting in Sudan

Philanthropy News Digest picked up a piece from May 4th LA Times regarding investments held by Berkshire Hathaway in companies that profit from Sudanese oil . Now ordinarily this probably wouldn't have raised so many eyebrows except that Bill Gates is a director at Berkshire--and the Bill & Melinda Gates Foundation is an investor in these same companies.
However, the Gates Foundation's biggest connection to the companies, according to the articles, is through Berkshire Hathaway.

Berkshire holds a $3.3-billion stake in PetroChina Co., a subsidiary of the China National Petroleum Corp., or CNPC, the biggest player in Sudanese oil. Buffet has both previously decried the violence in Sudan but said a divestment in Sudanese oil would not change the situation on the ground.

Since 2004, the Foundation has been giving grants to refugee and relief organizations working to aid the victims of the genocide in Darfur, including CARE and the International Rescue Committee.

This isn't the first time the Gates Foundation has been called out on the carpet for its investments, particularly companies that cause environmental damage in developing countries and large pharmaceutical companies accused of overpricing or withholding life-saving drugs from the world's poor.

One could certainly make the case that by holding such large shares in pharma companies the Foundation is able to exert much more influence on their practices of donating or withholding medication. However, I'm doubtful the same could be said about Sudanese oil.

Divestment to impact social change is nothing new. It worked to help bring the end of the shameful practice of apartheid in South Africa. Other companies withdrew investments surrounding the Vietnam war. And it should be clear that those calling for divestment in Sudanese companies are not looking to hurt ordiniary citizens but rather are targeting their calls for divestment at companies closely involved with the Khartoum government and others with links to the janjaweed.

You can find more information about Sudan divestment on the Sudan Divestment Task Force website.