Monday, June 11th, 2007
Greg Palast on the Battle to End Vulture Funds
Investigative reporter Greg Palast looks at the battle to end "vulture funds", where companies buy up debts of poor nations cheaply and then sue for the full amount.
At the close of the G-8 Summit in Germany last Friday, leaders of the world’s richest countries reiterated their commitment, first made in 2005, to cancel all of the debt owed by the world’s poorest countries. However, so-called “vulture funds,” or companies that buy up third world debt at rock-bottom prices and then sue the countries for the full value and more, are undermining any promises of debt relief.
In February, BBC investigative journalist Greg Palast exposed on Democracy Now! how one vulture fund, Donegal International owned by US resident Michael Sheehan, was trying to collect $40 million dollars from Zambia after buying one of its debts for $4 million dollars. Soon after, Congressman John Conyers and Congressman Donald Payne brought this up with President Bush, and urged him to ensure that the G-8 summit would close the legal loopholes that allow vulture funds to flourish. Greg Palast produced this report for BBC Newsnight last week.
* Greg Palast, Investigative reporter with the BBC and author of the books “Armed Madhouse”, “The Best Democracy Money Can Buy” and “Democracy and Regulation.
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They were voting for billions of dollars for Africa, and they didn’t know that Bush’s friends – now when I say Bush’s friends – you have to understand, the biggest single “Vulture Fund”, the biggest predator is, uh, operations owned by a guy named Paul Singer, who is the number one donor for George Bush and the Republican Party in New York. He’s also the big fund-raiser, he’s raising 10 million dollars for Rudy Giuliani. This isn’t the sidelight for this guy, this is the only way he makes money. So George Bush has to know that his big money is basically coming from kickbacks, from money taken from aid for Africa.
GREG PALAST June 11th, 2007
U.S. Vulture Fund Owner
Wins Debt Payment from Zambia --
But Faces Possible Indictment at Home
Tuesday, April 24th, 2007
A British court has ordered the government of Zambia to pay the "vulture fund" company Donegal International 15.5 million dollars. Donegal is owned by the US Company Debt Advisory International. But investigative journalist Greg Palast reveals a new development: Democracy Now!'s airing of his BBC expose on Donegal this year has led the Justice Department to open a bribery investigation that could lead to an indictment.
(includes rush transcript)
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Excerpt of Greg Palast's BBC report on "Vulture Funds"
(Click for full report)
X-New York Mayor Rudolph Giuliani talking to a yellow-shirted VM