US Congress passes Sudan divestment bill

By Susan Cornwell

WASHINGTON, Dec 18 (Reuters) - The U.S. Congress pressed for an end to the violence in the Darfur region by passing legislation on Tuesday to help investors who want to shed their holdings in companies doing business in Sudan.

The House of Representatives voted 411-0 to back the measure that aims to shield state and local governments, mutual funds and private pension funds from investor lawsuits if they divest shares of companies active in Sudan's oil, mining, power and military equipment industries.

It also denies federal contracts to companies involved in Sudan's oil, mining, power, and military equipment industries.

The bill has already passed the Senate and now goes to President George W. Bush. But his administration has criticized the legislation for interfering with foreign policy-making and it was unclear whether he would sign it into law. A U.S. State Department spokesman said the administration had some concerns about legal issues raised by the bill.

Rep. Barbara Lee, a California Democrat, said the United States had a moral responsibility to use every tool to stop the genocide in Darfur.

"It's time we put the United States, not just with rhetoric, but with action, on the right side of history," said Lee before the vote.

Experts estimate 200,000 people have been killed and 2.5 million uprooted in the Sudanese region's conflict, which started in 2003 and pits mostly non-Arab rebel groups against the Khartoum government and Arab militias.

The Save Darfur Coalition, an alliance of more than 180 faith-based, advocacy and human rights organizations, has asked investors to divest their holdings in companies such as Malaysia's state-owned Petronas [PETR.UL], India's Oil and Natural Gas Corp Ltd (ONGC.BO: Quote, Profile, Research, Stock Buzz), and PetroChina Co Ltd (601857.SS: Quote, Profile, Research, Stock Buzz), whose parent company, China National Petroleum Corp, is helping Sudan drill for oil.