December 2009

While you were enjoying your Thanksgiving dinner of turkey and mashed potatoes, another type of bird - the infamous Vulture - was feasting on Liberia, one of the poorest countries in the world.  Liberians had little to be thankful for this past week when a British court awarded two Vulture Funds $20 million for a debt that dates back to 1978.  For a country that sits in the bottom 15 for worst

living standards in the world, that $20 million siphoned off by the Vulture Funds is equal to 105% of the country's education budget and 155% of its health budget in 2008.

The Liberian government, currently headed by Ellen Johnson-Sirleaf, has shown itself as a model of responsible borrowing since the end of the war.  Despite the illegitimacy of Liberia's loans, taken out by dictatorial governments and used to fuel and finance the 14 years of civil war, the new democratic government has done all it can to start fresh by clearing its past debts.  In 2007, Liberia paid off its arrears to the World Bank and African Development Bank, and in April of this year successfully negotiated a $1.2 billion buy-back of its commercial debt - at 3 cents on every dollar it 'owed'.   

These successes should be cause for celebration, but this past holiday weekend, Liberia received a deafening blow to its recovery from the civil war when two Vulture Funds, Wall Capital Ltd. and Hamsah Investments, sued in British courts and were awarded $20 million.  These Vulture Funds held the rights to a $6 million debt from 1978, which has been passed through many hands and has an unclear record of spending and repayment - the money may have even financed and fuelled the civil war.  Unfortunately, because debt cancellation and buy-back mechanisms are voluntary, these Vultures refused to participate in the commercial debt buy-back. Instead, Wall Capital and Hamsah Investments held on to their loan and then swooped in to profiteer off of Liberia's poor and all the other creditors who participated in Liberia's debt restructuring.

This latest outrage demonstrates the urgent need to stop the abuse of U.S. and UK courts by these morally reprehensible Vulture Funds. 

Please take action today - tell your Representative to cosponsor the Stop Vulture Funds Act.  For more information on the Stop Vulture Funds Act, click here.

Thanks to all who support justice in Liberia and around the world.

Best, Tamara Gaw, TransAfrica Forum