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Calls for Alaska to increase distance from Darfur

by Bill McAllister
Tuesday, Dec. 11, 2007

ANCHORAGE, Alaska -- Real and potential financial ties between Alaska and the genocide in Darfur are under examination by the state's policy makers.

There could be effects on a bid under the Alaska Gasline Inducement Act, or AGIA, and on the investments of the permanent fund.

Of course, no one in Alaska government supports the campaign of terror by the Muslim central government of Sudan against the black residents of Darfur.    

But there's a question about how far the state should go in altering its own financial decisions because of the conflict.

Millions of refugees have fled the carnage in Darfur, where some estimates are that 200,000 to 400,000 people have been killed.    

Alaska seems far away.    

But Tuesday a Nobel Peace Prize winner and the head of an anti-genocide network co-wrote a guest column in the Anchorage Daily News calling on Gov. Sarah Palin to reject a gas line bid by Sinopec, a Chinese petrochemical company, which they described as the largest oilfield services provider in Sudan.  

State officials are in the preliminary stages of reviewing bids under the AGIA and were reluctant to comment, saying that applications were still being reviewed for their completeness.

There were four conforming bids to build the main project, with the Alaska Natural Gas Development Authority proposing only a spur line.     

If Sinopec is out, that leaves TransCanada, the Alaska Gasline Port Authority and AEnergia, about whom still little is known.    

Also, Conoco Phillips has proposed a project outside of AGIA.

Patrick Galvin, who heads the state Department of Revenue, says that review will wrap up soon.

"Then we'll move into a broader discussion about evaluating them on a wider range of issues. But for now, we're sticking to the completeness issues," Galvin said.

Gov. Palin has wide latitude in choosing a company to build the pipeline, according to House Speaker John Harris.

"I think the governor has pretty much the ability to say 'I'm not going to pick you' and probably doesn't even have to have a reason, even if they do qualify," said Harris, R-Valdez.

He added the Palin administration could potentially choose the application that it liked best.

Meanwhile, a state legislator is working on a bill that would require the Alaska Permanent Fund Corporation to divest about one-tenth of a percent of its portfolio -- $41 million -- from a dozen international companies doing business in Sudan.

"We're talking about a very very small amount, but it means a great deal to the people in Darfur," said Rep. Bob Lynn, R-Anchorage. "I think we have the high moral ground here. I think it's something we need to consider."

Permanent Fund Corp. executives say they've never taken into consideration socially responsible investing.

"You know, whether it's tobacco or alcohol or hospitals that perform abortions or hospitals that don't perform abortions. We just look for the best return within prudent limits, as prescribed by statute," said corporation Executive Director Mike Burns.    

As state leaders plan for Alaska's future, they also might take into account the tragedy on the other side of the world.

Twenty states across the nation have enacted divestment policies concerning Sudan, according to research done for Rep. Lynn.

About half of the permanent fund's Sudan-related investments are in one company, Weatherford International of Bermuda, which has announced its intent to discontinue investment in Sudan.

Contact Bill McAllister at bmcallister@ktuu.com