Parliament to vote on Vulture Funds bill tomorrow
Tomorrow, Friday 26 February, the Debt Relief (Developing Countries) Bill, a Private Member's Bill introduced by Andrew Gwynne MP, will have its crucial second reading in the House of Commons.
The Bill aims to restrict the activities of so-called 'vulture funds' - investment companies, often based off-shore, which buy up cheap poor country debts, and then sue for massive profits. It would impede the ability of vultures to recover debts through the British courts from countries which have had debt relief under the Heavily Indebted Poor Countries (HIPC) initiative.
In a report by investigative journalist Greg Palast which will be aired tonight (1), Liberian President Ellen Johnson Sirleaf will urge MPs to back the bill. Only last November the High Court in London awarded two Vulture Funds $20 million from Liberia for debts dating back to the 1970s.
Getting a Private Member's Bill through Parliament so close to an election will be difficult. As such Jubilee Debt Campaign (2), which supports the bill, is calling for all major parties to commit to enacting similar legislation within 12 months if the bill falls through lack of time.
Nick Dearden, Director of Jubilee Debt Campaign, said:
"Every passing day gives more opportunity for the vultures to take money from the poorest in the world. So the longer we leave it to change the law, the less effective the new law will be. We are calling on all parties to ensure legislation is passed within the next 12 months."
Andrew Gwynne MP said:
"For too long, some companies have been allowed to get away with exploiting the debt relief received by developing countries for their own profit; taking vital resources away from those that need it most. Through my Private Members Bill I aim to put a stop to it."
Sally Keeble MP, Co-Sponsor of the Bill said:
"This is an important bill that will help protect funds destined to provide services for some of the poorest people in the world. It will also protect the interests of British taxpayers who provide money for debt relief, only to find that some gets creamed off into these secretive funds."
1. More information at: www.gregpalast.com/liberian-leader-urges-mps-to-back-action-against-vulture-funds/
2. Jubilee Debt Campaign is a UK coalition demanding 100% cancellation of unpayable and illegitimate developing country debts. For more information see: www.jubileedebtcampaign.org.uk.