|
Vulture Fund Wins $15 million from Zambia
Jubilee USA Debt campaign urges Congress, President Bush
to Take Immediate Action
Jubilee USA
Network
Contact:
Karen Joyner 202-783-0215
Tuesday,
April 24, 2007 -- Today at the UK Royal Court of Justice in London, a
judge ruled that Zambia must pay $15.4 million plus a yet to be
determined share of legal costs to Donegal International, a vulture fund
that had sued Zambia for more than $50 million.
While
Donegal was not awarded the full amount it sought, debt campaigners were
outraged by the outcome as Donegal, led by American investor Michael
Sheehan, purchased the debt for just $4 million.
"With this
ruling, Donegal stands to make an outrageous profit out of one of the
world's most impoverished nations, winning almost half of the amount
Zambia was expected to save from debt relief this year. This money
should have gone to build desperately needed schools and clinics in
Zambia, not to line the pockets of a wealthy American investor and his
cronies," said Neil Watkins, National Coordinator of Jubilee USA
Network.
This year,
Zambia expects to save about $40 million from debt relief enacted in
2006 by the IMF, World Bank, and US government.
Jubilee USA
Network members and debt campaigners around the world are working to try
to stop Donegal from actually getting the money, and even more
importantly, to make sure the vultures don't prey on poor countries any
longer. Several Members of Congress have committed to hold hearings on
the practices of these vulture funds in May.
"This must
never be allowed to happen again. We are calling on President Bush to
work with other world leaders at the G-8 summit this coming June in
Germany to take definitive action to stop these vultures from preying on
poor countries in the future," said Watkins. |
