Liberia: Lawsuit Hangs Over LEC

ELTEL Network, an electrical company currently based in Sweden, is considering legal action against the Liberia Electricity Corporation (LEC) for failing to settle an outstanding debt of US$434,452.00. ETEL said it is resolving to institute legal action against the electricity corporation after nearly four years (2019-2023) engaging with the management to settle its debt but has yet to be successful.

ELTEL Network has also written Monie Captan, chief executive officer of LEC, issuing a 14-day ultimatum to make the payment. The communication is dated March 9, 2024. The ultimatum expired on March 23, according to a statement released from Sweden and signed by the company’s chief executive officer, Gunner Edholm.

The money at the center of the legal action resulted from the 2019-2020 agreement reached between ELTEL and LEC for the Swedish Company to supply low-voltage electrical materials to expand LEC power distribution.

According to Edholm, on January 1, 2024 he wrote LEC’s CEO, Mr.  Monie Captan, reminding him of the outstanding debts. However, up to present, Edholm claimed, Captan has refused and failed to respond to the letter, leaving the vendor with no option but to seek legal redress. Edholm also claimed that besides the January 1, 2024 communication, several other letters were written from Sweden to the management team at LEC. Unfortunately, they have yet to receive any response.

Edholm said, that to resolve the matter from reaching court, they (ELTEL Network) between 2019-2020 offered to the LEC management composition settlement agreement based on a direct payment of US$360,000, meaning if they were to accept the offer, ELTEL Network was going to deduct US$74,452, which LEC failed to honor.

“It is with deep regret that they have addressed the public regarding the ongoing issue of unpaid debt for the essential services they provided to the LEC from 2019-2020,” the Swedish company said in a statement. “This is a result of the LEC’s continuous refusal and unwillingness to settle its indebtedness to ELTEL Network.” 

Edholm claims that after Captan took over the helm at LEC, he continued to make promises of settlement, which are yet to materialize or come to fruition.

“This behavior is disgusting, and we have resolved to seek justice in the country’s judicial system. We are waiting for 14 days to begin the legal proceedings,” the statement noted.