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MPs move to outlaw Vulture Funds

Greg Palast 

By Meirion Jones
BBC Newsnight

Former UK ministers and MPs from all UK parties are set to back a bill later on Wednesday outlawing the activities of vulture funds, hedge funds which divert debt relief from the poorest countries into their own pockets.

goldfingersheehanThe bill singles out Donegal International and its boss Michael “Goldfinger” Sheehan who was exposed by Newsnight reporter Greg Palast for making a fortune out of Zambia’s debt.

Vulture funds have been condemned by governments around the world as perverse and immoral for preying on the world’s poor.

Developed countries including Britain and the US have spent billions of pounds trying to relieve the debts of the world’s poorest nations so that they can spend that money on health and education.

The vulture fund speculators effectively divert that debt relief to themselves by buying debt for pennies in the pound just as it is about to be written off, and then suing in British or US courts for the full value plus interest.

US outrage

In 2007, Newsnight exposed the activities of Donegal International which bought a tranche of Zambia’s debt for $3m and then sued for $55m – the size of Zambia’s health budget.

Reporter Greg Palast doorstepped Donegal’s boss Michael “Goldfinger” Sheehan who styles himself after the James Bond villain.

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Bush Could Block Debt Collection by ‘Vulture’ Funds

Greg Palast 

by Ashley Seager, Economics Correspondent
Thursday February 22, 2007
Guardian (London)

President Bush could come to the aid of Zambia against a so-called “vulture” fund demanding millions of dollars in debt payments. He is reported to be concerned that investors from the Washington DC area won a court case in Britain last week which enabling them to claim $20m to $40m (£20m) from the poor African nation – as much as it has received in debt relief from rich countries in recent years. …more