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Government says the Vulture Funds, that exist on the international monetary scene, should not be sustained because they exploit poor countries. Chef Government Spokesperson Vernon Mwaanga said the Vulture Funds have been used for somtime to exploit poor countries. Mr. Mwaanga said Zambia’s liability to pay the claimed debt is yet to be defined by the court hearing scheduled to take place on on March 9, 2007.
Mr. Mwaanga explained that the claim against Zambia arose from a debt incurred from the Romanian government for the supply of agricultural equipment in 1979.
“The claim against the Zambian Government arose from a debt incurred from Romanian Government in 1979 for the suplly of tractors, agricultural machines, vehicles, spare parts and training of personel,” Mr. Mwaanga said.
Vulture Funds, as defined by the IMF are companies that buy off debt of poor nations cheaply, when it is about to be written off and then sues for full value of debt plus interest.
Zambia was unable to keep up the payment, a sutiation that resulted in negotiations with Romania and subsequent liquidation of the debt to US$3 million in 1999.
But before Zambia could pay for the US$ 3 million debt, Donegal International bought off the debt for less tham US$4 million and then claimed US$42 million from Zambia.
Mr. Mwaanga explained that in 2003 entered into a settlement agreement with Donegal, the assignment he said was tainted by corruption.
He, therefore, said English Court was then expected to determine wether the
settlement agreement was duly signed on behalf of Zambia and the extent of liability involved.
Mr Mwaanga noted that Donegal was seeking to enforce a claim against Zambia for US$55 million despite having bought it from Romania eight years ago for only US$3.2 million.
Mr. Mwaanga has since thanked the co-operating partners for financially supportingthe Task Force on Corruption which has been responsible for contracting the LondonLawyers to act on the matter.
Its not a fair game!
The IMF are upto nothing good and its high time third world countries wake up to start working on their economies that are self sustaining. The manupulation of the economies of the third world countries by the IMF has thrown most African countries in the doldrums and who knows what will now happen to the already fragile economies of most third world contries with these vulture funds featuring on the international monetary scene. I am not an economist but I think it should not take someone to have a degree in economics to understand this kind of freudulent acts being perpetuated by the IMF to cripple the already weak economies of some third world countries.
Iam sure when Zambia was getting this loan from the gorvement of Romania the deal was between the goverment of Zambia and the Romanian goverment.So how does a third character come in with some unprecedented conditions which were initially not part of the deal?
Donegal International(who I suspect to be a sub group in the IMF)bought the debt at less $4m and are now asking for $42m fom the Zambia gorvement is outrageous and unjustified.There are two important question to be posed though: was the Zambia gorvement informed by the Romanian gorvement about the selling of this debet to Donegal internation and did Romania also explain the tight strings attached to this transaction?
These, I feel, are some of the salient questions most Zambians would like to hear answers about from Geoge Kunda once he comments about the issue. With debt cancellation we started to see some light at the end of tunnel but the featuring of the vulture funds on the internationer monetary scene present a dark cloud again and the future looks gloomy with little hope because I Know it is just the begin of the many vulture funds to come. Please leave Africa alone we also need economical independence and development.
Francis Ng’andwe
Canada,Edmonton
That is just how they have kept the whole continent in poverty. I don’t think this debt forgiveness is even real. It is just a bunch of non-sense for the west to look good. Most of these debts we owed were already paid . And what they have been harrasing us about is the so called interest. THis represents over a 1000 % ..which bank in the west would pay you over 100% for lending them you money in the form of savings? This wouldn’t happen in the west, but they do it on Africa..and then turn around and say we have forgiven them debts..after we have done all the payments many times over the principal. These guys are just running businesses and we need to work up on these issues
While we can say that Vulture funds are out to rip poor nations we should also see what role, at least in this case, what government officials play in helping these vultures get the money from us the Zambians. The Government should release the full Judgment so that the Zambian people shuld see who played a role in this matter and let the people judge who to point fingers at