Zambian Vulture Funds??????

[Tools]

Back in March 2007 I sent the following email to Ed Balls my local MP who at that time was Gordon Brown's right hand man at the Treasury, his reply somewhat bemused me, just thought I would share as I have just unearthed it.

Hello Ed,

As you may already know I am a constituent of Normanton and a member of a family that has been actively supportive of the Labour Party for many generations , more so my late Grandmother Mrs[edit] of Sharlston , who may be better known to your predecessor Mr Bill O`Brien,who I thank for his kindness during the last few years of her life.

I thank you for your invitation to your talk regarding the excellent work you are doing for the `Make Poverty History` campaign on the 26th of January 2007. I was unfortunately unable to attend due to a prior meeting to discuss another matter I am involved with that affects people in a very similar way.(this was actually the CAG Wakey meet)

I have been actively involved with the Consumer Action Group since June 2006 who , together with a registered membership of over 130,000 people , are a dedicated group concerned primarily with the despicable and unlawful actions of the banking system.

I am aware that you should have received an information pack from our group following the BBC Whistleblower programme aired last week. As you are at the forefront of the campaign to `Make Poverty History`I would be very interested to hear your opinions as Economic Secretary to the HM Treasury on the subject matter contained within the `Whistleblower Pack`you received recently . I would also be grateful if you could inform me of your proposals to deal with the matter now that the true costs of the unlawful charges have been revealed.

I feel you are in an excellent position regarding your involvement with the Financial Services Authority and representatives of the financial sector to make a much needed impact on the matter that is affecting the lives of so many people in our area and I know you are committed to standing up for and representing the people in our area. I remember you were at the forefront of other matters such as A Faster and More Transparent Payment System in November last year.

I would be very pleased if you could afford the time to reply to this email personally and would be happy to discuss the matter at one of your advice surgeries that have become a valuable asset to our community.

I thank you for your time and wish you every continued success.

Tools

If you would prefer to contact me by letter or telephone my contact details are as below
xxxxxx

I then received a message from

HM Treasury
1 Horse Guards Road
London
W1A 2HO
Tel:0207 270 5163

on the 12th April 2007 basically saying that

The Private Secretary acknowledges receipt of our letter dated 5th April(my mail sent 31st March 2007 so I am assuming it has been read and passed onto HM Treasury)and,
This is receiving attention 10th April 2007

A reference number is given for any enquiries so I decided to leave it and see what was returned.

What I got back was the following letter (attached below). When I first saw the title I thought it was asking me to donate lol but on further reading I was left with my head in my hands wondering how this country actually survives from day to day

Enjoy...............

[Celestine]

Re: Zambian Vulture Funds??????

Errrrrrrr what the hell is that all about!??

[Amethyst]

Re: Zambian Vulture Funds??????

Allll comes back to tractors.........and ferrets

[Tools]

Re: Zambian Vulture Funds??????

Errrrrrrr what the hell is that all about!??

My point exactly :wacko:

btw the handwritten sign off to the letter reads

......my very best wishes - I will keep you in touch on these issues.

...I think?

As yet I am still no wiser what happened to the poor vultures or indeed any other bird from Zambia.

Allll comes back to tractors.........and ferrets

Usually does dear

[PJ69]

Re: Zambian Vulture Funds??????

I think it was very nice of you, if not slightly unprofessional though, for you to finish your letter off to him with kisses........... lol

[Tools]

Re: Zambian Vulture Funds??????

Maybe I threw him then, if I sent it on a Thursday the sight of Beryl sending him kisses may explain the completely baffling response.

[enaid]

Re: Zambian Vulture Funds??????

There is mention of a tractor or two, no ferrets though pmsl


Zambia loses 'vulture fund' case



A High Court judge has ruled that Zambia must pay a substantial sum to a so-called "vulture fund".
British Virgin Islands-based Donegal International paid less than $4m (£2m) for a debt the African nation owed, but sued Zambia for a $42m repayment.
It said its bill was the result of interest and costs, but the judge has indicated that Zambia should pay less.
The ruling has angered anti-debt campaigners, who say it will undermine Zambia's plans for poverty reduction.
The judge ruled against Zambia's application to dismiss Donegal's claim, but at the same time proposed to end a freeze of Zambian assets secured by the fund.
Donegal, however, will have a chance to argue the case for a continued freeze of Zambian assets.
According to BBC economics reporter Andrew Walker, people familiar with the case believe that the judge will order Zambia to pay Donegal between $10m and $20m, less than half what Donegal sought.
Lawyers for Zambia, however, said the judgement was a victory for Zambia.
Janet Legrand of DLA Piper called the ruling "fantastic news for both the government of Zambia and its people".
The fight against Donegal's claim had been "entirely vindicated and [marked] a significant milestone in the efforts of [the Zambian government] to fight corruption and maintain a stable economic course".
Concerns
Vulture funds - as defined by the International Monetary Fund and UK Chancellor Gordon Brown among others - are companies which buy up the debt of poor nations cheaply when it is about to be written off, then sue for the full value of the debt plus interest.
There are concerns that such funds are wiping out the benefits which international debt relief was supposed to bring to poor countries.
A Zambian presidential adviser and consultant to Oxfam, Martin Kalunga-Banda, said $42m was equal to all the debt relief it received last year.
He told the BBC that this would take a serious toll on education in Zambia.
"It also means the treatment, the Medicare, the medicines that would have been available to in excess of 100,000 people in the country will not be available," he added.

Martin Kalunga-Banda


Mr Kalunga-Banda added that while the repayment might be legal, it arose from debts accrued when the country was under "an undemocratic system".
"The consequences of the debt are impacting on the people of Zambia," he said.
"The Zambians at that time did not even have even the capacity to know this was happening and that is probably what brings in this issue of unfairness."
'No comment'
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 less than $4m.
Debt Advisory International founder Michael Sheehan was confronted by the BBC's Newsnight programme before the court ruling, but said only: "No comment. I'm in litigation. It's not my debt."
Profiteering doesn't get any more cynical than this


Caroline Pearce
Jubilee Debt Campaign


In 2002, Gordon Brown told the United Nations that the vulture funds were perverse and immoral.
"We particularly condemn the perversity where vulture funds purchase debt at a reduced price and make a profit from suing the debtor country to recover the full amount owed - a morally outrageous outcome."
Jubilee Debt campaigner Caroline Pearce said that vulture funds "made a mockery" of the work done by governments to write off the debts of the poorest - a key theme of 2005's Live8 concert.
"Profiteering doesn't get any more cynical than this," Ms Pearce said. "Zambia has been planning to spend the money released from debt cancellation on much-needed nurses, teachers and infrastructure. "This is what debt cancellation is intended for, not to line the pockets of businessmen based in rich countries."