PRESS RELEASE: Liberia vulture fund $20m judgment tomorrow

PRESS RELEASE 25th November 2009 Liberia vulture fund $20m judgment tomorrow Tomorrow morning Judge Michael Burton will hear a summary judgment application in the High Court with respect to The Republic of Liberia, which is being sued for over USD$20 million by Hamsah Investments and Wall Capital Limited. The Claimants are the only identified commercial creditors that refused to participate in cancelling Liberia’s debts under the Heavily Indebted Poor Countries’ Initiative, with which Liberia is complying. The IMF, World Bank and African Development Bank have all agreed to forgive 100% of Liberia’s debts due to them; and the Paris Club (an informal group of financial officials from 19 of the world's richest countries) has agreed to forgive at least 96.865% of all claims against Liberia. The Claimants, whose beneficial owners are not known and who recently won a similar case against Nicaragua, only received the Liberian debt in 2008. Initially the debt was provided by Chemical Bank in the US in 1978. Between 1991 and 2006, Liberia had no electricity or water supply. Even now, access to these services remains limited and Liberia’s capital city, Monrovia, is the only capital city in the world without electricity and sewerage facilities. The Claimants’ claim represents approximately 10% of total government expenditure during the 2008-2009 fiscal year. Bernard O’Sullivan, Senior Partner at Byrne and Partners, who is acting on behalf of The Republic of Liberia on a pro bono basis commented: “This is a David and Goliath situation where the people of Liberia, who are in full compliance with the World Bank programmes, are at the mercy of a wealthy private fund, whose true owners are unknown. This case calls for a change in the law to prevent the continued pillage of poor countries by cynical vulture funds.” Contact: Bernard O’Sullivan, Byrne and Partners: 07767 618 206 / 0207 107 2400 bernard.osullivan@byrneandpartners.com www.byrneandpartners.com Yvonne Jefferies, Byrne and Partners: 07720 711746 / 0207 107 2400 yvonne.jefferies@byrneandpartners.com www.byrneandpartners.com Lauren Alexander, Maltin PR: 07515 664 338 / 0207 887 1357 mail@maltinpr.com