Zambia ordered to pay $15.4 million plus to vulture fund
24 April 2007
The UK Royal Court of Justice in London ruled that Zambia must pay Donegal International $15.4 million plus an undetermined share of Donegal's legal fees. Donegal purchased Zambia's debt for $4 million, then sued the impoverished nation for over $50 million.
Although Donegal is not receiving all that it sought, debt campaigners are outraged. Funds that could have been used for education and health will now have to be used to pay the court awarded amount.
Zambia was expected to save $40 million from debt relief this year, a significant portion of which will now go to Donegal.
Debt campaigners are calling on President Bush and other leaders of the G-8 summit to take action to stop vulture companies, such as Donegal, from preying on poor countries in the future, said the National Coordinator of the Jubilee USA Network, Neil Watkins.
Read More
- Vulture Fund Wins $15 million from Zambia. Take Action Today: Never Again!, JubileeUSA, April 24, 2007 (JubileeUSA website)
- Jubilee Debt Campaign’s call to Stop the Debt Vultures!
- Investors Aim to Profit from Zambia's Poverty, Sameer Dossani, Foreign Policy in Focus, February 21, 2007 (FPIF website)
- Zambia loses 'vulture fund' case, BBC News, February 15, 2007 (BBC news website)