The Liberia Revenue Authority (LRA) has received requests for information concerning potential alleged secret tax fraud linked to the secretary of Senate, J. Nanborlor Singbeh, president and chairman of the board of a Czech-Republic MHM Eko–Liberia, a rock crusher company in the country.
Singbeh, who is also former president and chairman of the board of directors, holds 30 percent of a total of 100 shares, while two Czech Republic nationals, Pavel Miloschewsky and Martin Miloschewsky, hold 35 percent each.
Mr. Singbeh has has been sued at the Commercial Court at the Temple of Justice in Monrovia for auditing, and proper accountability over allegations that he committed financial fraud by misappropriating US$3,995,109 in fund transferred through ECOBank-Liberia and the Afriland Bank, equipment and materials belonging to the company.
In the request dated April 2, 2019, filed on behalf of the Czech citizens by the Gongloe and Associates Incorporated to LRA Commissioner General Thomas Doe-Nah, a copy of which was obtained by the Daily Observer, Hans Armstrong wants to know the tax status of the company’s equipment and machines. Armstrong is a British national and Attorney-in-Fact for the 70 percent shareholders in MHM-Eko-Liberia.
The communication, signed by Cllr. Tiawan Gongloe, named the Atlas Copco, Hatachi-Zw310-a wheel loader, Jaw Crusher Premiertrak, and a Screener Power screen Chieftain, were brought into the country in 2016.
MHM Eko–Liberia Incorporated is a company established in 2013 to engage into the production of crushed rocks. But the Miloschewsky brothers has accused Mr. Singbeh of misappropriating US$2,495,109, as well as several of the trucks, machines and equipment valued over US$1.5 million, totaling US$3,995,109, and which the company’s majority shareholders had invested in its operations.
The company was operated in Seeke Town, District#4 in Margibi County.
It can be recalled that the Miloschewsky brothers’ lawsuit alleged that Singbeh’s deliberate refusal to attend shareholders’ meeting on several communications, including the one issued on July 31, 2017, left them with no choice other than to pass a resolution to re-constitute the Board of Directors. The Board appointed Cllr. F. Musa Dean (now Minister of Justice) as president and chairman, and Hans Armstrong as managing director and member of the board of directors. The board also convened on July 31, 2017, authorizing the management to commission an audit.
“Singbeh had refused to cooperate and to submit himself to an audit after having administered the affairs of the corporation since June 2013, and has also refused to vacate the corporation’s premises and offices, and to turn over the assets to the new managing director,” the lawsuit claimed.
The court’s record claimed further that the resolution authorized Mr. Armstrong to bring the action in the name of the corporation.
“Pavel and Martin Miloschewsky have each issued Power-of-Attorney to Mr. Armstrong, to bring the action in their names as though they were personally present in Liberia,” the suit said.
The lawsuit also claims that upon the incorporation of the company on June 14, 2013, and up to July 31, 2017, Mr. Singbeh was appointed as president and chairman of the Board of Directors.
The court’s document alleged that between June 14, 2013, and July 31, 2017, the Miloschewsky brothers remitted funds in excess of US$2,495,109 for the operation of the corporation.
They also sent equipment and machines, which amounted to another US$1.5 million to MHM Eko-Liberia, Incorporated.
”It being understood and agreed that several of the equipment and machines were sent to MHM EKO-Liberia, Incorporated on the basis of a rental agreement and arrangement,” the record noted.
The court’s document alleged that the equipment and machines were to be rented to MHM Eko-Liberia until the company could pay for them or was able to acquire its own machines, while some of the equipment and machines were purchased using funds remitted to Liberia by the Miloschewsky brothers.
They also claimed that the funds, equipment and machines were sent to MHM Eko Liberia to be used by the company to engage in the production of crushed rocks for sale, with the understanding that funds generated from the production would have been used to refund money spent by the Miloschewsky brothers, with the profit being applied and invested in the expansion of the company.
According to the lawsuit, Singbeh, after receiving the funds, equipment and machines, refused to sign the rental agreement and other documents. He also failed to provide an accounting or submit to an audit, according to the court’s record.