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Gold/Mining/Energy : TLM.TSE Talisman Energy -- Ignore unavailable to you. Want to Upgrade?

To: John Sladek who wrote (487)	10/4/1999 9:17:00 AM
From: Tomas	Read Replies (1) \| Respond to of 1713

Sudan: Talisman CEO defends project to fund manager - Globe & Mail, October 2 N.Y. pension fund questions Talisman on war CEO defends project to fund manager concerned about allegations company is inadvertently aiding conflict STEVEN CHASE Alberta Bureau Saturday, October 2, 1999 Calgary -- The head of the $90-billion (U.S.) New York City pension funds, which own 186,000 shares of Talisman Energy Inc., has written the Calgary company demanding it answer allegations that it's inadvertently aiding a civil war in Sudan. New York City comptroller Alan Hevesi tells Talisman CEO Jim Buckee in a Sept. 27 letter he is "deeply troubled" by accusations from anti-Sudan lobbyists that Talisman's involvement in the war-torn country inadvertently helps the northern-based government in its fight with southern rebels. "Our company's position painfully brings to mind the intransigence of companies that operated in South Africa under apartheid, incurring substantial damage to their public image and the eventual loss of capital as protesters demonstrated in front of their facilities and investors divested their stock," Mr. Hevesi writes. Mr. Buckee responded to Mr. Hevesi's questions in a telephone call yesterday. Mr. Hevesi could not be reached for comment, but Mr. Buckee said the comptroller is now reading information he faxed to New York. It's not the first time Mr. Buckee has been called upon to defend Talisman's $295-million (Canadian) investment in a lucrative Sudanese oil-field project, whose partners include the local government, China and Malaysia. He has faced criticism of the deal since it was signed in August, 1998, mainly from groups opposed to the current Sudanese government, which they accuse of staging a genocidal war against southern opponents. Press reports have quoted a Sudan leader in April as saying the government will use oil revenue from the project to build factories to make tanks and missiles for its war efforts. Mr. Buckee says the reports are wrong and the leader has assured him the money will be used for "roads, hospitals [and] peace, especially in the south." Mr. Buckee says Sudan is the victim of a propaganda campaign. "I absolutely don't believe accusations of genocide and also think the accusations of slavery are grossly misrepresented and possibly manipulated." He says it's not Talisman's job to defend the Sudanese government. "We are not supposed to be defending Sudanese history or the Sudanese government or anything else. We're just a business." But he admits Sudan could do a better public relations job. "The government does a very poor job of presenting a better face." Mr. Buckee says Talisman's investment is helping create prosperity for Sudan, including southern residents. He says someone else would take Talisman's place. "It's going ahead whether we are there or not. Forcing divestment of Talisman doesn't achieve a thing." An article in the Los Angeles Times in August called for a divestment campaign against Talisman. Mr. Buckee says he's seen no evidence such a movement is working. The New York City pension funds administer retirement benefits for the city's civil servants, police, teachers and firefighters, covering about 225,000 retirees and beneficiaries and about 320,000 active municipal employees. Its share of Talisman amounts to $8.3-million or a 0.15 per cent share of the company. A list of top 10 institutional shareholders of Talisman starts at those holding 0.2 per cent of the company. The funds are no stranger to controversy. Mr. Hevesi and New York state's comptroller recently joined treasurers and pension officers from three other states in asking the Federal Reserve to delay approving Deutsche Bank's $10.1-billion (U.S.) acquisition of Bankers Trust until the restitution demands of Holocaust victims had been met. Dennis Bennett, a 20-year banking-industry veteran working for a Christian Sudanese relief group, is one of Talisman's critics. He says the project wouldn't have been completed recently if it weren't for Talisman's investment. He estimates the oil project saves the Sudanese government $500-million per year in money it used to spend on crude imports, cash freed up to spend on weapons. Mr. Buckee says comparisons between Sudan and South Africa's apartheid period are wrong. "Apart from anything else, that was a minority in government holding down a repressed minority. In this case, the north is 27 million, whereas the south is three [million]."