Senate panel backs divestment bill on Darfur

WASHINGTON (Reuters) - A U.S. Senate panel approved a bill on Wednesday that would protect investors from shareholder lawsuits if they pull money out of Sudan as a way of pressuring the regime to end violence in Darfur.

"I look forward to getting this bill enacted as soon as possible, and to a day when the people of Darfur can again live free of the grinding, relentless violence and misery under which they have suffered for so long," said Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat.

The military conflict in Darfur in western Sudan has claimed an estimated 200,000 lives since 2003.

Dodd's panel approved the Sudan divestment bill by a 21-0 vote, sending it next to the Senate floor for action.

The Save Darfur Coalition praised the banking committee's vote and the Senate bill.

"This tough measure gives states and local governments increased ability to divest their finances from companies linked to genocide," said Allyn Brooks-LaSure, spokesman for the group.

The group said the Sudanese government uses up to 70 percent of its oil revenue, generated mainly through foreign direct investment, to give arms and supplies to the Janjaweed militia accused of the killings in Darfur.

The Senate bill would bar the federal government from contracting with companies linked to the killing, and require would-be federal contractors to certify that they are not involved in key sectors of the Sudanese economy. The bill would also encourage other countries to take similar steps.

(Reporting by Kevin Drawbaugh)