Yesterday, Congressman Donald M. Payne, Chairman of the Subcommittee on Africa and Global Health, held a hearing on the topic "Vulture Funds and the Threat to Debt Relief in Africa: A Call to Action at the G-8 and Beyond." During the hearing, Payne urged the US government to take action against the predatory practices of a class of commercial creditors appropriately known as "vulture funds".

These companies try to use the sanguine term "distressed-debt investors" to mask the fact that they buy debt of highly-indebted poor African countries for pennies on the dollar only to turn around and demand through litigation the full value of the initial debt plus interest and fees.   Many times, these odious debts were acquired by authoritarian regimes and were not used in the legitimate interests of their people.

When creditor nations and multinational institutions like the International Monetary Fund (IMF) and the World Bank decided to offer debt relief and cancellation, the intent was to give these nations the opportunity to reallocate newly freed financial resources towards achieving the UN Millennium Development Goals.   Vulture funds threaten to derail progress made on debt relief in Africa.   During the hearing, Representative Payne stated, "Instead of servicing millions of dollars in debt annually, these nations could finally begin to service their own people.   Schools could be built, teachers and nurses could be hired, life-saving medication could be distributed.   Yet, with the threat of vulture funds waiting in the wings to swoop down and prey on struggling, impoverished African nations, poverty reduction programs and plans for economic development could come to a grinding halt.   Thus, a few Americans are begetting fortunes at the expense of the misfortune and further impoverishment of millions of Africans. This is morally reprehensible and exploitative."

Congressman Payne was joined at the hearing by Mr. Danny Glover, Actor/Activist and Chairman of the Board of TransAfrica Forum, Ms. Emira Woods, Co-Director of Foreign Policy in Focus at the Institute of Policy Studies, and Mr. Neil Watkins, National Director at JubileeUSA Network who all testified to the detrimental effects that vulture funds, if left unchecked, could have on African nations.   "The morally bankrupt actions of vulture funds render the commitments to debt relief made by the US and other wealthy nations meaningless.   We urge the international community to come up with effective means to protect countries pursued by vulture funds in the future," Mr. Glover declared.

As the industrial nations meet in Germany at the G-8 Summit on June 6-8, 2007, the United States must play an active role in the vulture funds discussion.   Given that the United States is a prime destination for litigation by these funds and is a leading nation on debt relief, it has the ability to generate policy proposals and garner support among other nations.   Congressman Payne vowed, "I, along with other Members of Congress, will be sending a letter to President Bush calling upon him to take a stronger stand against vulture funds by assisting nations that have or could potentially under come attack.    We must encourage G-8 nations to close the legal loopholes that allow these vulture funds to prosper."

A deliberate attempt to ensure that under developed regions of Kenya, Uganda and Tanzania are a priority in allocating scarce resources is critical to the success of the envisioned East Africa political federation, a leading international scholar, Dr. Ahmed Samatar has said. Dr. Samatar, the Dean of International Studies and Programming at Macalester College in Saint Paul was speaking during a listening session to gather views from the three countries’ nationals living in Minnesota.

Dr. Samatar said issues that led to the earlier collapse of the East African Community have to be dealt with head-on. He said success is dependent on the political federation being better, more grounded and constitutionally based than the African Union which he described as a big joke “have you looked at the budget of the AU, it cannot even do anything” he said. Dr. Samatar said the federation ahs to have an institutional basis. He added that the challenges facing the new East Africa cooperation are different than what led to its collapse in the 1970s. The new cooperation between the three countries has to be examined in the context of globalization which was not as pressing in early years. “All of these three countries need each other”, he said as none can stand on its own.

The listening session was organized by the three countries’ respective Minnesota associations (Umoja Society – Tanzania, Kenya Community in Minnesota – KCM and Uganda Association in Minnesota – UGAMN) and was held at a conference room at the Hennepin County Brookdale Library in Brooklyn Center, just outside of Minneapolis. Views are being collected around the United States from nationals of these countries to be eventually forwarded to the EAC Secretariat in Arusha under the aegis of the East African Cooperation Forum in Hudson, New Hampshire and the Atlanta based East Africa America Business Council. Dr. John Wathum-Ocama, an adjunct professor at the University of Minnesota presented a PowerPoint presentation outlining the progress achieved so far as the countries march towards a federation.

Rwanda and Burundi are also expected to join the regional bloc this summer with the EAC Secretariat formally acknowledging last week that Rwanda will be formally accepted on June 18. With the two countries coming to the fold, the domestic market for the East African Community will grow to 120 million.

Prof. Samatar opined that Africa’s failing has been its unwillingness to make investments in what he called an “intellectual culture”. He said Botswana’s stature as an African success story is due in part to its ability to marry both modern ways of governance with African traditional systems that are still relevant in our age.

Those who did not make it to any of the sessions around the country can fill out a survey online to express their views on the proposed federation.

What do you know about Ireland? Perhaps you have heard of its beautiful countryside or Irish beer or Irish Step Dancing? This year the Minnesota International Center in line with its goal of educating the community about different countries around the world honored Ireland. In a series of events throughout the year the culminated in a huge fundraiser benefit, MIC brought together Irish nationals, Irish Americans and Minnesotans whose interaction was as diverse from cultural exchanges to strengthen trade relations.

MIC President Carol Byrne described the MIC Gala Benefit thus, "It is a springboard for socializing while showing love for the MIC community and the country of the year. There is a strong Irish community here in the cities and it is MIC’s role to reach out to them."

This year’s fundraising saw MIC raise more than $140,000 in ticket sales, donations and the sale of auction items. Auctioned items included dinner with Irish diplomats in the US and holiday packages to Ireland. Karen Sorbo, former Mrs. Minnesota was the nights auctioneer working her way into the pockets of guests as she urged them on to purchase the packages. Guests were treated new Irish cuisine and Irish musicians with an ensemble that included some of the members of the original Irish River Dance.

Sean Farrell, the Irish Consul General, who was the guest speaker, commended MIC in its development and strengthening of trade relations between Ireland and Minnesota. He looked forward to a continued growth in this relationship. Lunch with him was one of the highlights of the auction.

MIC is the sixth largest world affairs council in the US. Each year, MIC puts together a gala benefit focusing on a specific country. Last year MIC’s highlight was Morocco. Other events leading up to this year’s gala included a literary session with artistic director of the Guthrie Theater, Joe Dowling. He spoke “about the significant contributions Irish playwrights had on the dramatic literary cannon with names such as George Farquhar, Oscar Wilde, Samuel Beckett, Brendan Behan and Brian Friel.”

MIC annual programs include: world affairs forums, an international visitor leadership program, and international classroom connection program among others.

Minnesota Kenyans continue to be the faithful Diaspora in receiving Kenyan politicians interested in running for office in Kenya’s general election later this year. The latest to make a stop here was former Health Minister, Professor Sam Ongeri. He is the former Member of Parliament for the Nyaribari Masaba constituency. He declared at the meeting that he will contest in the upcoming elections to try and reclaim the seat he lost to Mr. Hezron Manduku a fellow physician.

Prof. Ongeri addressed members of the Minnesotan Kenyan community that consisted largely of people from the constituency he once represented in parliament. Ongeri is impressed by the support the Minnesotan Diaspora has continued to offer their communities in Kenya. As a result, he wanted to engage them in dialog on the political and economic growth of the country.

Running on the former ruling party KANU (Kenya African National Union) ticket, Ongeri is confident that his party has the right platform for the future of Kenya since it “built the infrastructure and allowed for freedom of speech.”

On questions of all the controversy that has mired KANU, Ongeri quipped, “KANU is now pure since all the inefficient and corrupt leaders have left for other political parties.” However, Ongeri is also convinced that no single party will win a majority in the elections and leaders will have to get into coalitions.

With Kenya’s electorate getting smarter, it is without a doubt that this year’s election will demand accountability and deliverance from its political leaders. Ongeri feels that he can step up to the plate. He prides in himself as initiating polytechnics and other post-secondary institutions in Kenya. He developed a healthcare system plan, which with several phases including development of healthcare infrastructure and personnel will lead to a universal healthcare system. His experience working with the healthcare industry in bringing down the cost of retro-viral HIV/AIDS drugs, he declares will make him more than able to represent members of his Nyaribari Masaba constituency in Kisii district.

Ongeri expressed his concern in blind promises made by politicians. For instance, he cites the rush to free primary education was not phased in well to accommodate the needs of Kenyan children. Hundreds of children, especially girls, are still not getting basic primary education thanks to poverty. Ongeri also cited the need to develop post secondary institutions to meet the gross need of primary school graduates. “The core of Kenya’s future lies in its youth so we have to create alternative sources of employment and skills so that we do not have a frustrated youth.”

As the chair of the board of governors at a local high school in his district, Ongeri, even when away from active politics, has made a model school showing what can be done with few resources. By empowering the teachers through education seminars and visits to well-performing schools in other parts of the country, Ongeri and his board have made it possible for disenfranchised students to get admissions into the national universities.

As is the case in these types of meetings, the most interesting part is the question and answer session. Answering questions from the audience, Prof. Ongeri took issues with what he called the “rosy picture” that the Kibaki administration has been painting regarding economic performance. He said there was a disconnect between the rosy picture painted and The Kenya Integrated Household Budget Survey released in late April. The survey indicated poverty levels in the country dropped from 56.8% in 2000 to 46% in 2005. He said the poverty figures confirmed government critics’ worst fears that there was inequitable distribution of resources in the country. The survey results showed Nairobi and Central Kenya where president Kibaki and his inner circle are from have the lowest poverty rates at 21% and 30% respectively with Prof. Ongeri’s Nyanza province at 47%. The most poverty stricken province is North-Eastern at 73%.

Prof.Ongeri also shared his position on current jostling within the Orange Democratic Movement (ODM) indicating that he will not endorse any candidate until a clear nomination is made and ODM presents a candidate that will square off with president Kibaki. He urged his Gusii community to not blindly get behind a candidate. His criticism of the Kibaki government found a receptive audience. One of those disappointed with the performance of the current administration is a former civil servant now living in Minnesota, Linet Nyabuto. She accused the Kibaki government of purging the government of the Abagusii giving an example of Professor Ratemo Michieka who was fired as Vice-Chancellor of Jomo Kenyatta University of Agriculture and Technology after Kibaki took over. She wanted to know what Dr. Ongeri can do to ensure job security when new administrations take over.

Also making brief remarks at the meeting was the Mwanyagetinge Umoja chairman, Paul Morande, who commended Professor Ongeri on his early work to combat HIV/AIDS in Kenya before it was fashionable to do so.

Tom Gitaa contributed to this report.

African immigrants in Minnesota today comprise 25% of the black community in this state and should learn to understand the funding culture of philanthropic organizations in America if they are to attract any money to meet their ever-growing needs.

Delivering a keynote address at the Center for Families in North Minneapolis on April 26 on a community dialogue on the impact of African non-profits, Dr Jacqueline Copeland admitted that there is a cultural and communication gap between funding agencies and non-profits that has to be addressed.

She told a fully packed assembly of stakeholders that many philanthropists in America do not have a clear understanding of the intrinsic African culture and core values. She said they mainly relied on the mainstream media exposition of the African stereotypes that depict Africans as unreliable, corrupt and a people on the lookout for handouts.

She said contrary to those racist stereotypes, Africans have a long tradition of volunteer work and “do take care of their communities here and at home.” She cited a World Bank Report that pointed out that in the year 2006, the Africans in the Diaspora remitted to the mother continent $ 20 billion, the largest single net-flow of capital to Africa.

Through a process of acculturation, she noted, African-led non profits must learn to adjust to a complex culture, understand the funding trends as public expectations change over time and collaborate with other successful non-profits by learning from their experiences to succeed.

She noted that in America today about 300 no-profits are established each week and thus the competition for limited funding resources is intense. African non-profits should be focused in their core missions and articulate their priorities as a way to respond to their community needs and attract funding.

The community dialogue on African nonprofits was organized by the Minnesota Council of Nonprofits (MCN) in collaboration with the Leadership Empowerment and Development Group (LEAD). Research findings compiled by a University of Minnesota student pursuing a masters program in public health, Omar Fernandes, comprised recommendations that formed the bedrock of a lively discussion. The co-presenter  was the Executive Director of LEAD, Qamar Ibrahim.

In their recommendations, they urged funders to compare and contrast the amount and impact of resources going to mainstream organizations as opposed to smaller African-led organizations to ensure optimal distribution and use of resources. They noted that funders should periodically examine their commitments as their investments have lacked continuity and have not kept pace with the growing needs of the African immigrant population in Minnesota.

 The presenters noted that African-led non-profits should take part in future surveys and research as a means of communicating their needs. They are to learn how to communicate directly, openly and honestly with the stakeholders on organizational strengths and weaknesses and resource capacity needs to be able to have their expectations met.

Norman Harrington Jr., President of NWH & Associates – a management consulting firm – advised African non profits to approach funders “with an asset base instead of a deficit.” He said they should articulate their requests with a Pan-Africanist mission that resonates with the changing political climate of the day. He said they look more credible when they bring something of their own on the table rather than coming empty-handed.

A member of the public complained that as African-led non-profits succeeded in capacity building, their dependable staff are lured into greener pastures thus leaving the organization with a cycle of training experts that end up serving more stable institutions where employees get a fat paycheck.

Some 32 nonprofits were examined over a five-year period (2001 – 2005) to determine their historical financial trends of annual revenues and expenditure. Throughout the five-year period, the average revenue was close to $ 150,000 – relatively small nonprofits but the cumulative resources more than tripled during this period. Expenses for the organizations in 2005 averaged $ 190,000. Of the 32 nonprofits surveyed, 77 percent of their revenue sources came from charitable contributions, gifts and grants, and 19 % came from program service revenue, including government fees and contracts, and 4 percent came from other sources.

In terms of expenses by functional categories, 80 percent of African-led nonprofits’ total expenses went to program services, 16 percent went to management and general expenses while 4 percent went to fundraising activities.

The African Nonprofits 2007 Report noted that as of expenses in categories, “50 percent of the African-led nonprofits’ total expenses went to salaries, other compensation and employee benefits, 9 percent went to occupancy, rent, utilities and maintenance, 6 percent went to travel, conferences and meetings, 3 percent went to professional fees and other payments to independent contractors, 1 percent went to printing, publications, postage and shipping, and 31 percent went to other expenses.”

It was further noted that as no single organization has exclusive contact with a client, it was imperative for nonprofits to collaborate with one another to share valuable information, utilize resources efficiently, and provide a variety of programs and service to clients.

Minnesota’s African immigrant population has seen more than a threefold increase since 2000, and includes representation from 45 nationalities. Large numbers of immigrants come from Somalia, Ethiopia, Liberia, Kenya and Nigeria. Nonprofits provide key services to immigrants, refugees and asylum seekers.

The Guest of Honor, Dr Jacqueline Copeland has 25 years experience as grant-maker, researcher and evaluator in the philanthropic nonprofit sector. She has taught philanthropy to graduate and professional students at the University of Minnesota and at St Mary’s University.

Apart from being Founder and Partner of Copeland Carson & Associates, a national philanthropic services and evaluation firm, she has authored two books: Creating Africa in America and Creating Evaluation Anthropology. She now lives in San Jose California with her husband and teenage daughter.

Zyombi International Project, recently renamed Africa Health Action, has earned its reputation as an outstanding pioneer of HIV/AIDS education organizations in African communities of the Twin Cities. So why is there so much hubbub and dispute surrounding it now?

For many Africans in Minnesota, the names Siona Nchotu and Zyombi are like one and the same.

Since being diagnosed with HIV/AIDS in 2002, Nchotu has made presentations throughout African communities about the epidemic of the deadly virus and prevention efforts. Her story is remarkable not only because she survived being in a five-day coma and having a mere 14 white blood T cells, a veritable death sentence, but also because she became a trailblazer as an HIV-positive African immigrant who openly and publicly discusses the disease and her status.

“It was just a miracle. I had only 14 T cells and I survived,” said Nchotu. “I could only thank God and try and educate other people about HIV and AIDS. It became my ministry.”

In 2004, Nchotu founded the Zyombi International Project (ZIP) to further her mission. From the Bafu language in Cameroon, the word “zyombi” translates roughly as “see the world” or, as an implied meaning for ZIP, open your eyes to see the world with AIDS. For the next two years, Nchotu became a regular speaker at Cameroonian gatherings in the Twin Cities and events involving HIV/AIDS non-profit organizations. The Minnesota Department of Health awarded ZIP with two small grants, and Nchotu said she had vision to expand the organization’s mission and outreach.

Jump ahead to 2007, however, as ZIP has landed in controversy that has become a matter of public concern. The organization has changed names, changed executive directors, and Nchotu has filed a lawsuit against the very non-profit that she founded. That is just the beginning as versions of what exactly happened to ZIP and Nchotu are in dispute.

The organization, which was renamed African Health Action in January, is currently led by executive director, Alvine Siaka. Nchotu has alleged that Siaka deceived her and wrested away control of ZIP. Siaka has flat out denied the allegations. Besides sparking debate in African communities, the power struggle has led both disputants to land in court for different reasons. Nchotu’s lawsuit is ongoing and is for misrepresentation among other charges against the entire ZIP Corporation. Siaka later filed a restraining order against Nchotu, a matter that was resolved and ultimately dismissed by a judge.

“All of this is also just like the meaning of zyombi,” said Nchotu. “You see, what happened to me. You see what happens in the world.”

Two Sides to the Story

According to Nchotu, the story starts some 18 months ago when she departed for Cameroon in November of 2005. At the time, she said she had recently asked Siaka to join ZIP and act as executive director while she was away. She said that she had been in the process of applying for full non-profit status through the federal government, known as 501(c)3 status. But Nchotu said she had yet to expand the board of directors and staff to anyone beyond her, Siaka, and two others or to establish the organization’s bylaws, two major requirements to receive full non-profit status.

Nchotu said she had entrusted Siaka to continue ZIP’s mission, to apply for the 501(c)3, and to apply for grants. Siaka did exactly that and more, recruiting several new board members, updating the organization’s incorporation, expanding its mission, and applying for and eventually receiving 501(c)3 status. Upon Nchotu’s return to the US a year ago, however, Nchotu claimed that Siaka would not cooperate with her.

“[Siaka] amended the incorporation under her name only, filed for the non-profit status under her name, and did everything as if it was her organization all along,” said Nchotu. “She would not show me any paperwork when I asked to see it or introduce me to the new board members.”

Last summer, the Minnesota Department of Health awarded ZIP a grant worth $257,585 for a 30-month period. It was at that time, Nchotu alleged, that the confrontations between her and Siaka began to increase and, in September of 2006, Siaka handed Nchotu a letter of termination.

For Siaka’s part, she said that she believes that the dispute can find a resolution, and that she hopes that everyone involved can just focus on the mission of the organization. Siaka said that she has been on a mission trip with her church, Westminster Presbyterian in Minneapolis, to Cameroon to gain experience with communities affected by HIV/AIDS. She even praised Nchotu for her work.

“I wanted to recognize the work done by Siona (Nchotu),” said Siaka. “She has done a very good job. She has used her story to reach out to the community.”

When then asked the reasons for Nchotu’s termination, Siaka said that she would prefer not to discuss the matter as it is under litigation. (She did say that it had been Nchotu who had asked her to assist with Zyombi as executive director before Nchotu left for Cameroon.)

“The board made a decision not to discuss this information,” she said. “You can contact our attorney.”

Later in the interview, Siaka said that she is proud that Africa Health Action has been able to expand its services to include testing not only for HIV but also Hepatitis C, and she hopes that the organization will serve a more diverse range of African communities.

Within some such communities, however, she also faces a degree of opposition.

Divided Views
Nyango Melissa Nambangi knows both Siaka and Nchotu professionally. She is the executive director of the Minnesota African Women’s Association and an elder at Westminster Presbyterian Church, where Siaka also attends. She said that, at one point, Siaka approached her about assisting in resolving the dispute with Nchotu.

“I do think that Alvine (Siaka) pushed Siona (Nchotu) out,” said Nambangi. “The community is in an uproar. This has happened before, and it has been detrimental to the African community.”

Nambangi said that there are ethical issues and African cultural values at play in this case beyond what happens in and out of the courtroom.

“It is really disappointing to see what has happened,” said Nambangi. “This state took a long time until it could trust African organizations because so many times Africans would quarrel… This could hurt our image again.”

Nambangi also questioned whether or not Siaka, who did not have non-profit experience before she started with ZIP, could have made any progress as an executive director without Nchotu’s name and credibility.

According to records at the Minnesota Department of Health (MDH), ZIP received two small grants of no more than $4000 each starting in 2004. Gary Novotny, who works in MDH’s HIV and STD section, said that more than 60 groups applied for the funds that ZIP received most recently, the $257,585 grant, and that only 20 others received similar funding, including two other African groups. He noted that the application process was very competitive and covered groups that planned on offering extensive services, such as outreach, interventions, testing, etc. Thus, he said that more than just previous organization work was considered in the process.

“That would be hard to say,” said Novotny. “The review process does look at past work. There are some good things that have to happen. But this was an entirely different process for a different level of funding. That’s why we rely on the federal government’s 501(c)3 status as a good indicator.”

Novotny also commented on the complaint that Nchotu filed with MDH against Siaka and ZIP.

“There was an investigation,” he said. “The agency was in compliance, and they identified areas in which they could improve. There were no other findings except that they were doing a satisfactory performance.”

Some of ZIP/African Health Action’s board members expressed similar satisfaction with the organization’s progress and all board members interviewed declined to comment at length about the dispute with Nchotu. Although, some praised her previous work and expressed hope for finally resolving the matter.

“I don’t want to get into the nitty-gritty and who said what about who,” said the non-profit’s board president, Nancy Nelson. “We are a responsible non-profit, and we have an executive director who is doing her job.”

Other board members expressed doubt over community criticism of Siaka and the organization.

“They are merely repeating what [Nchotu] has told them,” said board member, Duane Kroenke. “I don’t believe it is true, and the court will ultimately decide that dispute. Despite the distraction, the organization has been able to meet its goals.”

One key aspect of the lawsuit is that it is a derivitive lawsuit, meaning that the lawsuit is actually filed on behalf of the organization. Thus, the organization’s board of directors has appointed a special litigation to determine whether or not the lawsuit is in the best interest of African Health Action. That may make it more difficult for Nchotu to plead her case, especially since she said it is difficult for her to afford legal counsel. Another important aspect is that a non-profit cannot be owned by anyone, and is in fact run by its board of directors.

The recognized board of directors is, of course, the one formed in Nchotu’s absence. Members of that board have said they have made attempts to resolve the dispute between Siaka and Nchotu, and, according to documents obtained by Mshale, they have offered Nchotu an opportunity to continue a role as an educational speaker for the organization.

Nevertheless, concerns have continued to be discussed in the community and raised at gatherings.

Pascal Atem said that he also knows both Siaka and Nchotu and has listened to both sides.

“Siona (Nchotu) is an elder of this community,” he said. “She started this project. Everything about it was her idea. It is something she feels and she lives for it. People have listened to what Alvine (Siaka) has to say, but they are tending to sympathize with Siona (Nchotu). ”

As far as Nchotu, she has continued to make presentations at African community outside of ZIP and without pay.

“When I started the organization, it was just me and my handbag,” she said. “I don’t care if it returns to just me and my handbag. I just want back what I started.”