Building on California's leadership in fighting genocide in Sudan with economic measures, Governor Arnold Schwarzenegger signed legislation prohibiting companies with business operations in Sudan from bidding on state contracts for goods and services.  See below for more information.

Lisa Kalustian
Chief Deputy Director
Office of Governor Arnold Schwarzenegger
300 South Spring Street, Suite 16701
Los Angeles, CA 90013
(213)897-0322
FAX (213)897-0319

For Immediate Release:                                                           

Wednesday, September 24, 2008                                                             

Governor Schwarzenegger Signs Legislation Directing Divestment from Sudan

Building on California's leadership in fighting genocide in Sudan with economic measures, Governor Arnold Schwarzenegger signed AB 498 authored by Assemblymember Ed Hernandez (D-West Covina) prohibiting companies with business operations in Sudan from bidding on state contracts for goods and services.

“California will not underwrite the horrors of murder and genocide in Sudan,” Governor Schwarzenegger said. “With this legislation, we are continuing to send a message that California will not condone nor enable economic gain at the expense of innocent people in Sudan.”

The ongoing devastation in Darfur has killed an estimated 400,000 and displaced over 2.5 million Sudanese. AB 498 ensures that California will not award state contracts to companies that directly or indirectly aide the Sudanese government. 

In September 2006, Governor Schwarzenegger signed two bills, AB 2179 and AB 2941, prohibiting the state’s pension funds from investing in companies with active business in Sudan and indemnified the University of California from liability that might result from its divestments from Sudan. The Governor also sent a letter to President Bush urging him to sign the Darfur Peace and Accountability Act of 2006, which was later enacted into law. In addition, the Governor signed AB 221 last year, creating the California Public Divest from Iran Act prohibiting CalPERS and CalSTRS from investing public employee retirement funds in a company with business operations in Iran.

In the 1980s, the state approved similar measures to allow state entities to divest in South Africa in order to protest its apartheid policies.

###