Liberia: Afriland First Bank ‘Dubious Dealings’ Expose
..... “This court is baffled if not at a loss to have the defendant bank rely on an amended article of incorporation without requesting for the original article of incorporation and when in fact said legal instrument never existed,” Peabody noted.
Judge Kennedy Peabody of the Civil Law Court 'A' has ruled that Afriland First Bank conspired with the Secretary of the Liberian Senate, Nanborlor Singbeh, to siphon over US$100K from two Czech Republic investors.
Peabody's ruling was in response to a request from the Bank to dismiss a US$3.3 million lawsuit for breach of deposit contract.
The suit was filed by Hans Armstrong, a British national and Attorney-In-Fact to two Czech Republic investors Martin and Pavel Miloschewsk against the bank.
“This court is baffled if not at a loss to have the defendant bank rely on an amended article of incorporation without requesting for the original article of incorporation and when in fact said legal instrument never existed,” Peabody noted.
"This being the case, it will mean there is no legal instrument available to have qualified MHM Eko Liberia be treated as a corporation," the judge added.
The Miloschewski brothers sued the Bank for providing a nonexistent bank account, which some money was wired into for Singbeh to acquire a mining license for MHM Eko mining company, which never happened.
The brothers wired US$102,000 to the bank as a collateral for MHM Eko Liberia, a rock quarry company owned by them to obtain a Class B Mining License from the Ministry of Mines and Energy, the damages suit claimed.
The money, they claimed, was allegedly withdrawn by Singbeh and the mining license was never acquired. Afriland First Bank, according to the Czech nationals, provided a nonexistent “MHM Eko Liberia account,” which the collateral money was wired into, allowing Singbeh to withdraw it.
The shareholders for MHM Eko Liberia are the Miloschewski brothers who each hold 35 percent share totaling 70 percent shares, making them the majority shareholders and board members of the MHM Eko Liberia, while Singbeh holds the remaining 30 percent share.
According to Peabody, the Afriland First Bank in this regard failed to protect the Miloschewski brothers when it relied on an amended article of incorporation from Singbeh to release the money.
Peabody noted that it was Cllr. Tiawan Gongloe, one of the lawyers representing the Czech investors, who on May 2, 2019 wrote the Liberia Business Registry (LBR), requesting to know whether the article of incorporation of MHM Eko Liberia was ever amended.
“And, the Registrar General Sampson Dee of the LBR, in a reply dated May 3, 2019, revealed that the articles of incorporation of MHM Eko Liberia had never been amended. This court says there is a legal maxim that states an allegation made and not contradicted is believed to be true,” Peabody noted.
Initially, Afriland First Bank has in its motion argued that transactions in the said account were with the full approval of Singbeh and other officers of the corporation, “as such, the defendant bank has breached no deposit contract and that the action for damages be dismissed.”
The bank further stated that the money in the case belongs to MHM Eko Liberia, and that the bank got full authorization from Singbeh for all the transactions carried out in said account.
But Peabody reminded the bank that the records in the case revealed that the article of incorporation carried the name of the Czech Republic investors, who appointed Armstrong as their Attorney -In-Fact.
Peabody also said the Miloschewski brothers, in their private capacity as investors, wired the money to the bank.
“It is a decision of this court that the motion to dismiss should be and the same is hereby denied and dismissed and the resistance thereto is sustained. And, it is hereby so ordered," Peabody added.