The Justice in Chambers of the Supreme Court of Liberia, Jamesetta Wolokolie, has ordered to reverse a judgment handed down from a Writ of Prohibition filed by the Management of Monco Liberia Ltd. in an Action of Debt by attachment involving Global Bank Liberia Ltd. in the Commercial Court at the Temple of Justice.
In her ruling of February 18, 2014, Associate Justice Wolokolie said that a single judge could not sit on a case and therefore mandated that the decision of Commercial Court Associate Judge, Richard Klah be squashed as trial recommences.
According to the case history, Monco Liberia Ltd. had written a request for a letter of credit from the management of Global Bank Liberia Ltd. /Member Bank PHB Group, in the amount of US$1.5 million for the importation of 15,000 metric tons of 42.SR Portland Grade Cement from Monco’s five-year cement contract allocation of 1.5 million metric tons exclusively, from its supplier, Haotai Resources Company Ltd. China.
The request was approved by the management of Global Bank Liberia Ltd/Member Bank PHB Group through its then Managing Director, Mr. Victor Idabor and the letter of credit was granted while the bank also granted a cash facility overdraft of US$250,000 for renovation and expansion of Monco warehouses, pending the arrival of the consignment of cement.
An additional amount of US$490,000 was said to have been spent by Global Bank for government taxes, port storage fees, Bivac inspection and Camer Shipping Lines, handling of the cement from vessel to warehouses and trucking, fork-lifts as well as the stacking of cement in warehouses.
The original Bill of Landing then pointed to Global Liberia Ltd. as being the consignee of the cement, GW-13683.726MT, a NW of 13636MT upon arrival at the Free Port of Monrovia and when the cement arrived in Liberia, Global Bank Liberia Ltd/Member Bank-PHB Group, signed for and took possession of the original delivery order from Camer Shipping Lines and contracted the same shipping agent, Camer and Audit Control and Expertise (ACE) to handle the discharging, movement and custody of the cement to the various warehouses.
Apparently without the knowledge of Monco, Global Bank-Liberia Ltd/Member Bank-PHB Group, short landed 6, 000 metric tons or 120,000 bags of cement to UCI warehouse, and that was also later sold to that management.
Documentary evidence did not prove that Global Bank reported revenues and expenditures of the cement transactions, despite numerous requests to MONCO or its management which left Monco Liberia ltd with no alternative but to complain Global Bank-Liberia Ltd/Member Bank PHB Group to the Central Bank of Liberia in a letter dated June 26, 2013 because by then Monco was said to be experiencing bankruptcy.
In that letter, MONCO termed Global Bank as being unprofessional and lacked best banking and business practices, and while awaiting a response from Central Bank, Global Bank Liberia Ltd, issued a law suit against Monco Liberia Ltd. and its president and CEO for Action of Debt in the amount of US$ 1, 692, 161, 24 including additional charges plus l2 percent interest rate for the period.
The president and CEO of Monco has rejected the claim and told the court how the Bank had hijacked the full consignment of cement, sold it and blatantly failed to account for the proceeds generated and with counterclaims, Monco is accusing Global Bank Liberia Ltd/Member Bank PHB Group of owing the Management of Monco Liberia Ltd. for its total shipment of cement therefore the bank should be held liable.