The United Kingdom Royal Court of Justice in London yesterday ruled that Zambia should pay US$15.4 million to Donegal International, the Vulture Fund that sued Zambia for US$55 million debt.
And commenting on the judgement in an interview in Lusaka last night, Attorney General Mumba Malila described the outcome as good news for Zambia.
This is according to the Jubilee United States of America website which also stated that court would determine the share of legal costs later.
It also described the judgement as a small victory for Zambia.
The anti- Vulture Fund campaign organisation further said that the injustice of the result could not be clearer.
And Mr Malila said the outcome of the case was a plus for Zambia and commended the lawyers for having fought hard to bring down the amount from US$55 million to US$15.4 million.
He said the judgement of such an amount was a plus for Zambia unlike the earlier claim.
British Virgin Islands-based International paid US$3 million for a debt Zambia owed Romania but later sued for US$55 million repayment.
The debt originally had a face value of US$15 million, but Donegal International claimed that unpaid interests and other charges raised the amount to US$55 million.
Zambia had paid back US$ 2 million, but Donegal International successfully sued the Zambian government on February 15, 2007 in the UK court.
In 1979, the Romanian government lent Zambia money to buy Romanian tractors.
Zambia was unable to keep up the payments and in 1999, Romania and Zambia negotiated to liquidate the debt for $3m.
But before the deal could be finalised, Donegal International, which is part owned by US-based Debt Advisory International stepped in and bought the debt from Romania for US$3m.
Daily Mail
This is part of the Chiluba legacy. He is to blame for putting us in this situation. Now that Judgment has been passed, FJT needs to tell the nation all he knowns about this secretive vulture fund deal. This,just like the US$7m deal with Moise (Not Moses) Katumbi his nephew,happened during the FJT reign.
Indeed the Judgment is a small victory because tax payers money will be used to pay the US$15.4m. Judgment debt and other related costs.
I just dont know why Zambian’s are good at borrowing? It’s somebody’s money for God’s sake and it need’s to be returned.Someone, somewhere worked for it, and it is someone’s tax contribution that they used it to loan you that money.If somebody got your money and did not return it,there will be a quarrel. It is also somebody’s tax payer’s money that Romania used to loan that money to Zambia. Someone cancels your (kongole) and you are happy. For God’s sake,let’s restore our prideness,instead of going round the world begging and rejoicing when your debts are cancelled.I never seen proud people as in Zambia or the entire Africa,who are so proud, that they are even proud of begging everywhere.When the investor’s come,Zambian’s are the first to complain,meanwhile you are having their money and they are not complaining. Be Fair, there is no victory in all this just embarrasments from our leaders,especially the KK’s.Sing the national anthem of Zambia and know it’s lyrics. Proud and Free…….
This is no victory for Zambia! Donegal spent three years trying to convert the debt into a local investment and was turned down… And the settlement agreement they eventually negotiated provided for a payment of only $14 mm, of which there was only $12 mm to pay when Zambia defaulted…
How is it a victory to spend millions on legal fees and end up having to pay $15.5 million plus another $2 million in legal fees to Donegal’s lawyers, plus the $4 million or so Zambia paid its own lawyer (Tony Blair’s brother)!
That is not a victory… it is a pathetic embarrassment.
It is all in the judgment. Read it and weep.