National Catholic Reporter Quotes Eric LeCompte on Pope's Africa Agenda

National Catholic Reporter cites Eric LeCompte on Pope's Mozambique visit and debt scandal. Read an excerpt below, and click here for the full story.

Francis suggests officials in Mozambique are corrupted by foreign aid

Eric LeCompte, the leader of Jubilee USA, a network of religious and development groups that argue for international debt relief, praised the pope's choice to visit the three countries. He said each have been dealing with separate corruption scandals.

"Pope Francis is extremely concerned with the cost of corruption on the poor," LeCompte told NCR.

"In Laudato Si', Pope Francis also calls foreign debt a tool of rich countries to control poor countries," he said, citing the pontiff's 2015 encyclical letter. "Mozambique and Madagascar are examples of this as they struggle with debt crises … natural resource theft and high poverty rates."

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Together, we can win...

Friends,

Because of your actions and support, this summer our Jubilee USA campaigns are bearing fruit.

Our debt relief efforts for Somalia are gaining momentum. Congress introduced the Corporate Transparency Act to combat financial secrecy, protect debt relief monies and prevent human trafficking. Your e-mails and calls to Congress this summer secured more than $8 billion in debt relief and disaster aid for Puerto Rico.

Please join me and make a tax-deductible contribution to Jubilee USA today so we can continue to move forward strategic campaigns.   

Your gift now is matched and will double our impact this fall. 

When you donate to Jubilee USA, we can: 

  • Win debt relief for Somalia. Three quarters of Somalia's population lives in poverty and is still recovering from war and instability. This Fall, your gift means we can continue our work on a global bankruptcy process, responsible lending and debt and disaster relief campaigns for Mozambique and Caribbean islands. 

 

  • Pass the Corporate Transparency Act. This legislations stops "Panama Papers" financial secrecy. This behavior facilitates the theft of debt relief aid, human trafficking and contributes to the loss of more than a trillion dollars of revenue in the developing world. With your support, we can get this legislation signed into law in the next year.

 

  • Move forward debt and disaster relief for Puerto Rico. Already our efforts together won $50 billion in aid and moved forward a super bankruptcy process for the island. Your gift means we can win debt relief, stop austerity policies, audit the debt and win the $70 billion in recovery aid Puerto Rico still needs.

 

  • Push for a new NAFTA trade deal that ensures vulnerable populations and all who need life-saving medicines can access the medicines they need. Working together, we already moved the White House to eliminate harmful provisions in trade agreements that favor predatory, debt-collecting hedge funds and abusive corporations.

 

  • Further our efforts to address student debt, predatory debt collection and payday lending. Working together, we ensured certain types of student loans had low interest rates. When you donate to Jubilee USA now, it means our bipartisan, interfaith work can build bridges to protect students and consumers.

 

Please make a contribution to Jubilee USA so we can move forward our strategic, critical campaigns this fall. Your gift is doubled and matched now.

Gratefully,

Eric

Eric LeCompte
Executive Director

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Mozambique Charges Former President's Son, Officials for Secret Debt Scandal

Washington DC - Mozambique charged the former president's son and 19 others on corruption, fraud and blackmail in relation to a $2 billion dollar loan scandal.

“Some of the world's poorest people are the victims of the Mozambique debt scandal,” noted United Nations corruption and finance expert Eric LeCompte and Executive Director of the religious development group, Jubilee USA Network. “This behavior is only possible because of a lack of global loan transparency and a lack of public budget transparency in Mozambique.” 

In July, former Credit Suisse banker Andrew Pearse pled guilty in US Federal Court for accepting millions of dollars in a fraud scheme that led to the $2 billion Mozambique loan scandal and debt crisis in the East African country. Pearse and six others are accused of taking $200 million in kickbacks. US prosecutors argue that Credit Suisse and Russian-based VTB finance group hid secret loans by bribing bank and government officials. The loans were supposed to support the tuna fishing industry, but instead supported the outfitting of boats as military attack crafts.

Both the US and Mozambique governments also seek to prosecute and extradite former Mozambique finance minister Manuel Chang, currently detained in South Africa.

"The International community must implement standards on public budget transparency and responsible lending and borrowing to prevent future corruption,” said LeCompte. “The people of Mozambique struggle to recover from endemic corruption, a debt crisis and horrific natural disasters."

This year, the southeast African country was hit with two destructive cyclones.

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Eric LeCompte Speaks with American Prospect on Puerto Rico

Jubilee USA Executive Director speaks with American Prospect on Puerto Rico's ongoing debt crisis and the island's political status. Read an excerpt below, and click here for the full story. 

Ricky Se Fue—Y Ahora Qué? A Mobilized Puerto Rico Battles Increased Federal Control

“Will we see rage turn into real action?” asks Eric LeCompte, executive director of Jubilee USA, a network of community and faith-based organizations that work on debt, tax, and trade issues. “For Puerto Rico to have a real future, there needs to be a process where questions around its colonial status need to be resolved. Whether it’s a hurricane, or debt crisis—because of their colonial political status, they don’t have the tools to resolve problems they face by themselves.”

When PROMESA was created in 2016, the Obama administration agreed to appoint three Democrats and four Republicans to the board. In the fall, the Trump administration will decide whether to appoint new members to the federal oversight board or keep the existing group. According to LeCompte, creditors at vulture funds see the prospect of new appointments as an opening for extracting more funds from the beleaguered island.

“Creditors are doing everything they can to destroy the bankruptcy process,” says LeCompte.

Read more here

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National Catholic Reporter Invites Eric LeCompte to Pen Commentary on Puerto Rico

Eric LeCompte writes on Puerto Rico issues of corruption, debt, disasters, child poverty, economic growth and renewable energy. Read an excerpt below, and click here for the full article. 

Gov. Rosselló is out, but much more is needed to better Puerto Ricans' lives

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Puerto Rico Distributes Disaster Food Assistance Funds

Washington DC - The Government of Puerto Rico announced that distribution of emergency disaster food assistance begins on Monday. In May, Congress approved $600 million for the Puerto Rico Nutrition Assistance Program (NAP) as part of disaster relief measures to benefit Americans recovering from disasters such as wildfires and hurricanes.

“The funding helps more than a million vulnerable people in Puerto Rico,” said Jubilee USA Director Eric LeCompte, whose group worked with Congress and the White House on the aid package. “We are excited the money will be distributed after so many people saw these emergency disaster benefits cut.”

In March, over a million people in Puerto Rico lost NAP benefits when Congress failed to authorize funding. Jubilee USA generated thousands of phone calls and e-mails to Congress to approve the funding. In May, Congress voted for the funding and in early June President Trump signed the aid package into law. Beyond NAP funding, the plan also included $300 million in housing assistance and expedited nearly $9 billion in other disaster aid already approved for Puerto Rico.

“Puerto Rico is wrestling with many challenges and still struggling to recover from the devastating 2017 hurricane season,” noted LeCompte.

$45 million of the $600 million nutritional assistance is scheduled to be part of Monday's distribution in Puerto Rico.

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Debt Collectors Fined and Ordered to Stop Operations

Washington DC - Two debt collection agencies were ordered to stop operations and fined more than $60 million by the Consumer Financial Protection Bureau (CFPB) and New York's Attorney General. The settlement involves debt companies run by Douglas MacKinnon and Mark Gray. Their companies are accused of using predatory collection tactics that include collecting false debts and impersonating police officers to force collection.

"Abusive debt collection practices need to be stopped,” stated Eric LeCompte who leads the religious debt watchdog group, Jubilee USA Network. “This settlement is a strong warning to debt collectors who engage in predatory activities."

Mackinnon and Gray's Buffalo-based network of debt collectors reportedly increased debt collection amounts, in some cases by as much as 600%.

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Puerto Rico Governor Ricardo Rosselló Resigns

Washington DC - Puerto Rico Governor Ricardo Rosselló resigned Wednesday. Protests engulfed the island for nearly two weeks after Rosselló drew criticism for offensive language in leaked communications and the FBI arrested former members of his administration on corruption charges.

"The people of Puerto Rico reached a boiling point in recent weeks. People were in the streets about much more than the Governor's inappropriate language,” stated Eric LeCompte, the head of Jubilee USA, which works on Puerto Rico corruption, disaster aid and debt relief policies. "Puerto Ricans marched because they are tired of corruption, because 6 out of 10 kids live in poverty, because of hundreds of shuttered schools, an enormous debt crisis, and months of waiting for promised hurricane disaster aid to arrive.”

In 2016 the US Congress passed emergency Puerto Rico debt crisis legislation for the US Territory which stopped paying $72 billion in debt. The child poverty rate is nearly 60 percent and in 2017 the island was devasted by two hurricanes.

"Rosselló's resignation is not enough to answer Puerto Rico's endemic corruption, high poverty levels, the economic crisis or being forgotten after hurricanes ravaged the island,” LeCompte stated. “Puerto Rico needs serious debt relief, sufficient disaster aid, strong public budget transparency laws and economic investments in growth, not more austerity policies."

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Eric LeCompte Cited in Quartz on Newly Revealed $14.8 Million Tax Evasion

Eric LeCompte was quoted by Quartz on U.S. multinational airline company Aircastle Ltd. avoiding $14.8 million in state taxes owed to the nation of South Africa. Read an excerpt below, and click here for the full story. 

A US multinational avoided South African taxes worth twice Johannesburg’s social housing budget

“While much of this behavior is legal, it is immoral,” Eric LeCompte, executive director of faith-based anti-poverty group Jubilee USA, said in a statement. “Developing countries are losing vital monies to fight poverty and build infrastructure because of this behavior that avoids paying taxes.”

Poorer countries lose up to $100 billion each year thanks to tax agreements with offshore jurisdictions like Mauritius, according to UN research. Fixing this imbalance, LeCompte said, is the only way for these nations to meet the Sustainable Development Goals set by the UN in 2015, which established a series of economic and social benchmarks to be attained by 2030. On a broader scale, the Tax Justice Network, a research and advocacy group, estimates that multinationals shifting profits to tax havens costs the world’s governments more than $500 billion per year, with poorer countries losing the most as a percentage of GDP.

Read more here.

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Judge Halts Puerto Rico Bankruptcy for 4 Months

San Juan, Puerto Rico - In a hearing on Wednesday, US District Court Judge Laura Taylor Swain told Puerto Rico's government, creditors and a federal oversight board that for 120 days all debt suits will be on hold and sent to mediation. Puerto Rico is attempting to resolve more than $72 billion in debt.

"The judge's action will likely slowdown decisions on the overall bankruptcy plan that the oversight board wants approved," stated Jubilee USA Director, Eric LeCompte. LeCompte is a United Nations debt expert who testified to Congress and the oversight board on Puerto Rico's bankruptcy. "While the debt needs to be cut as soon as possible, the current chaos in Puerto Rico and the serious concerns about corruption make it difficult to make prudent bankruptcy decisions at this time."

Hundreds of thousands of people in Puerto Rico are protesting because of Governor Rosselló's offensive language in leaked communications and recent FBI arrests of former members of his administration on corruption charges.

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