Jubilee USA Network * American Friends Service Committee * 50 Years is Enough Network * TransAfrica Forum

Action Alert - Tuesday, February 20, 2007

Call-In Today: Stop the Debt Vultures!

Call on Donegal International to Stop Taking Millions from Zambia’s Debt Relief

See www.jubileeusa.org

The vultures are circling! Right now, a private company is trying to scavenge a huge profit from Zambia, one of the world's poorest countries which has just benefited from debt relief. Please take action to prevent this.

** On Tuesday, February 20, call Debt Advisory International (DAI)’s Washington, DC office at 202-463-2188 and tell Michael Sheehan, the owner of DAI and Donegal International, not to take up to $20 million from Zambia! **

In 1999, a 'vulture fund' called Donegal International bought a debt owed by Zambia, originally worth $15 million and then valued at about $30 million, for a knock-down price of $3.3 million. Now it has sued Zambia for the full amount, plus interest and costs – a staggering total of over $55 million! On 15th February 2007, a London court rejected the size of Donegal's claim, but said that under law it is still entitled to something from Zambia.

The exact total is to be determined, but may be as much as $20 million. This would be half of the amount Zambia is due to save from debt relief this year: but it desperately requires all its money to invest in essential social services and infrastructure development. Donegal must not take this money, and you can help.

This story was first aired publicly last week by Greg Palast on BBC’s Newsnight and on Democracy Now! with Amy Goodman. You can watch the news stories which gives more details at http://jubileeusa.typepad.com/. Then, take action!

** On Tuesday, February 20, Call Debt Advisory International (DAI)’s Washington, DC office at 202-463-2188 and tell Michael Sheehan, the owner of DAI and Donegal International, not to take up to $20 million from Zambia! **

When you call, say:

“My name is X and I am calling from City, State, Country.

I am calling to urge Michael Sheehan to do the right thing: don't take money from Zambia.

I am angry that Donegal International is making money from one of the poorest countries in the world. I urge you not to take this money from Zambia. Donegal bought this debt cheaply when Zambia was already eligible for debt relief. It is now seeking to extract money from a country that has recently received life-saving debt cancellation.

I urge you not to demand this money. Zambia cannot afford to be paying out millions of dollars.”

For more information on this case:

Jubilee USA: www.jubileeusa.org

Blog the Debt: http://jubileeusa.typepad.com/ (includes links to stories on BBC and Democracy Now!)

Jubilee Debt Campaign UK: http://www.jubileedebtcampaign.org.uk/?lid=2893

Oxfam Great Britain: http://www.oxfam.org.uk/what_you_can_do/campaign/he/donegal/vulture_fund.htm

For more information, see www.jubileeusa.org or call 202-546-4470

Neil Watkins

National Coordinator

Jubilee USA Network

Direct line: (202) 783-0129

Skype: neil_jubileeusa

http://www.jubileeusa.org

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Posted on 20 February, 2007 - 00:26