Liberia: GT-Bank's U.S.$1.2 Million Debt Action Against Kailondo Petroleum Sparks 'Smear Campaign'

9 June 2023
FrontPageAfrica (Monrovia)

Monrovia — Several mainstream and social media outlets have been flooded with news in recent days regarding the reemergence of a legal battle between GTBank and George Kailondo, along with his company, Kailondo Petroleum.

This follows GTBank's lawsuit in the Debt Court against Kailondo Petroleum for an outstanding payment of over US$1.2 million. In response, Kailondo Petroleum has displayed instruments allegedly showing unauthorized transactions on his account by GTBank. These transactions, however, are unrelated to the bank's debt action.

It can be recalled that in 2021, Kailondo Petroleum took GT Bank (Liberia) Limited to court for alleged unauthorized withdrawals. Despite the bank's plea of innocence and presentation of documentary evidence to prove its case, Criminal Court "C" and the Civil Law Court found the bank guilty in 2021 and 2022, respectively.

The Civil Law Court rejected the bank's counter lawsuit, in which it sued Kailondo Petroleum for unpaid debt arising from non-performance on a Novation Agreement and other charges amounting to over US$1 million. The court imposed a total of US$3.25 million as special and general damages on the bank. The bank faced a setback when its appeal was dismissed by the Supreme Court on technical grounds without being heard on merit.

An anonymous source at the Civil Law Court revealed that the bank reached a stipulation with Kailondo Petroleum and the court, and has started making payments totaling a little over US$4.1 million, which includes the above-mentioned amount, court costs, and attorney fees.

When contacted for comment on the trending news, the bank declined, stating that its lawyers were handling the case. However, an anonymous source within the bank confirmed the information provided by the Civil Law Court regarding the payment made by stipulation.

The source further mentioned that despite these payments, Kailondo Petroleum has refused to acknowledge and settle its outstanding obligations to the bank, leading to the bank filing a lawsuit in the Debt Court to recover depositors' funds.

Represented by the International Law Group, LLC, the bank's legal team informed the Debt Court that Cllr. George B. Kailondo, Sr. of Kailondo Petroleum approached GT Bank's management to novate ACE Global's financial obligation under a Collateral Management Agreement. The agreement had been entered into by Kailondo Petroleum and GT Bank of Liberia, making both parties jointly and severally liable to the bank. The bank alleged that Kailondo Petroleum and ACE Global colluded to unlawfully remove the plaintiff's petroleum products from the LPRC's storage tanks.

According to the bank's legal team, ACE Global conspired with Kailondo Petroleum and removed petroleum products worth US$791,458.21, despite the products being subject to the Collateral Management Agreement. They claimed that Kailondo Petroleum failed to make any payment to the plaintiff, and as a result, should be held jointly and severally liable for the amount being sued for.

The International Law Group, LLC also stated in the lawsuit that on September 29th, 2017, Cllr. George B. Kailondo, Sr. and GT Bank entered into a Novation Agreement to pay the full amount of ACE Global's antecedent and existing indebtedness of US$791,458.82 to the plaintiff. The agreement required Co-Defendant Cllr. George B. Kailondo, Sr. to assume the debt in accordance with the law.

The International Law Group, LLC also noted in its lawsuit that on September 29th, 2017, Cllr. George B. Kailondo, Sr. and the GT Bank entered into a Novation Agreement to pay the full amount of ACE Global's antecedent and existing indebtedness of US$791,458.82 (United States Dollars Seven Hundred Ninety-One Thousand Four Hundred Fifty-Eight, and Eighty-Two Cents) to the Plaintiff which has, by the said CMA, been assumed by Co-Defendant Cllr. Goerge B. Kailondo, Sr. in accordance with the law. The court's record disclosed that Kailondo's offer was accepted in the utmost good faith to pay the full amount of ACE Global's financial obligation, while terms of payment were drawn out in the Novation Agreement payable in twenty-four (24) consecutive monthly instalments of the amount of US$ 32,977.45 (United States Dollars Thirty-Two Thousand Nine Hundred Seventy-Seven, and Forty-Five Cents), commencing from November 30, 2017 to October 30, 2019. Some legal luminaries find it astonishing how Kailondo Petroleum has been parading on some news outlets and the social media with instruments for which he has used to gain undue public sentiment and tarnish the bank's reputation. Our source in the bank then went on to say that the bank will not be deterred by the tactics being employed by Kailondo Petroleum as it still believes in the justice system of the country.

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