By Precious D. Freeman
The Debt Court in Monrovia has ordered a temporary freeze on millions of bank accounts belonging to Citadel Mining.
The Ghanaian company was subcontracted by Western Cluster to transport its iron ore from Bomi County to the Freeport of Monrovia for failing to settle the outstanding judgment debt in the amount of US$40,000, to Mr. Hans Armstrong, a British national.
In 2022, Armstrong filed an Action of debt lawsuit before the court accusing Citadel Mining of failing to comply with his (Armstrong) demand for the balance payment under the rental contract agreement, praying the court to hold the mining company liable for the amount of US$34,000 plus six percent (6%) statutory interest and two percent (2%) successful attorney fees, totaling US$40,000.
The dispute resulted from the July 1, 2022, equipment lease agreement under which the mining company leased a Hitachi 850 excavator machine from Armstrong for a period of two calendar months for a total rental fee of US$84,000, which the mining company paid US$50 000 and refused to pay the balance of US$34,000.
In the court order seen on Friday, June 21, the judge asked ten commercial banks together with Western Cluster to disclose details of millions of personal and business accounts along with equipment and properties belonging to Citadel Mining and in their possession on or before June 29.
Ecobank, Guaranty Trust Bank (GTBank), Afriland First Bank (AFB) International Bank Liberia Limited (IBLL), Liberia Bank for Development and Investment (LBDI), United Bank of Africa (UBA), Access Bank, SIB Bank, Citi Trust Bank and Bloom Bank, are the commercial banks in which Citadel Mining accounts are blocked.
The banks and Western Cluster were attached to a garnishee proceeding initiated by Armstrong, to recover the balance of US$34,000 which is outstanding from the actual judgment sum, from which Citadel Mining paid US$50,000 in 2022.
Judge James E. Jones’ decision to freeze Citadel Mining accounts was triggered by the Supreme Court judgment, denying the mining company petition for prohibition, challenging the Court’s ruling.
The judge also ordered the banks and Western Cluster to file with the court formal returns stating the total amount of money, properties, and equipment held by them in the name of Citadel Mining.
He furthered ordered them to submit to an examination in relation to the possession of money, properties, equipment or any portion thereof belonging to Citadel Mining.
Judge Jones said, “The respondent is warned not to dispose of such properties, money, equipment or any portion or kind thereof until directed to do so by this Honorable Court and further warn them that if the Respondents/Garnishees should dispose of said money, properties, equipment or machinery or failed to sit for said examination; each of them will be individually held liable for the judgment claimed.”
He also ordered Western Cluster to pay to the court any money currently in its possession for the benefit of Citadel Mining on or before June 29, 2024.
On July1, 2022, Armstrong and Citadel Mining entered into an equipment lease agreement under which the mining company leased a Hitachi 850 excavator machine from Armstrong for a period of two calendar months for a total rental fee of US$84,000.
The monthly operational hour of the leased equipment under the agreement was 240 hours and the amount to be paid per operational hour was US$175, according to the Action of Debt lawsuit filed before the court.
In partial fulfilment of the agreement, the Citadel Mining made a down payment of US$50,000, and took possession of the equipment and deploy same at its mining operation site in Bomi County.
The balance amount of US$34,000, under the agreement was due to be paid on August 15, 2022. Unfortunately, on August 15, 2022, Armstrong through his counsel, wrote the Citadel Mining, demanding the balance amount due under the agreement, but the Citadel Mining failed to make the payment as demanded.
However, Citadel Mining failed to comply with Armstrong’s demand for the balance payment under the agreement, he filed an action of debt before the Debt Court for praying the court to hold the mining company liable for the amount of US$34,000 plus six percent statutory interest and two percent successful attorney fees, totaling US$40,000.
Justifying his lawsuits, Armstrong claimed that the mining company is intended to abuse and frustrate justice by denying him of his legitimate rental income.
The Citadel Mining asserted that Armstrong is aware that the Hitachi 850 excavator machine subject of the equipment lease agreement was not operable and functional; that the parties mutually agreed in good faith.
Their argument was that the amount of debt is in dispute because the equipment which was leased to it by the Armstrong’ is not function as expected and therefore, Armstrong is not entitled to receipt of the US$34,000 sued for.
