Ecobank Sues MOFATO’s Manager over LD6.5m Unpaid Loan

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The manager of MOFATO Inc, Momo Siafa Kpoto, who is believed to have already been challenged with debt, became the target of a foreclosure lawsuit by a bank seeking L$D6,477,504.91 repayment on a 2008 loan.

In spite of Kpoto’s numerous challenges, he has on many occasions failed to appear before the Debt Court of Montserrado County, where Ecobank’s lawyers have filed an “Action of Debt” lawsuit against him to recover their unpaid loan.

One of such evidence is a document dated December 19, 2014, entitled “Writ of Summon by Publication and Mailing,” which instructed its Sheriff, Major Robert B. Toe, to have it served on Kpoto.

However, that writ was not served on him because he could not be located anywhere in the country, meaning that if he again fails to appear before Judge James E. Jones, based on another writ, the court will come down with a default judgment against him.

However, a portion of that writ, a copy of which is with the Daily Observer, said to Sheriff Toe, “You are hereby commanded to summon defendant Momo Siafa Kpoto to appear before the Debt Court for Montserrado County sitting in its January 2015 Term, to meet on the Second Tuesday in January 2015, same being the 13th day of January at the hour of 10: am.

“To answer to the complaint of the plaintiff, Ecobank in the case action of debt and to notify said defendant that upon its failure to appear, judgment will be entered against it by default.”

It concluded, directing him, “To further notify the defendant to file its formal appearance or answer in my office on or before the 8th of January 2015. Meanwhile, you will return the writ in my office.”

According to the complaint filed on behalf of Ecobank, Kpoto borrowed LD3,500,000 in 2008, and was supposed to make full payment within eight months. But the company had not made any payment, the suit claims.

The loan was made after the company’s manager Kpoto and the bank entered into an agreement in which Kpoto mortgaged his deed and several other instruments, such as secured promissory note, according to the lawsuit.

The loan, according to the document, was for Kpoto to purchase additional working tools and equipment to increase and enhance his business operation, which loan request the bank approved with the condition that it be repaid within eight months as of the date of the agreement.

But, the company’s debt has now been increased to LD6,477,504.91, which the bank says includes interest, penalty and charges.

“We have executed all efforts to have defendant Kpoto pay, but it has proved to be of no use, even including a letter sent to recover the amount as requested by the agreement,” the bank’s lawyer said in the lawsuit.

“Therefore, we want the court to render the judgment against the defendant in the amount of  LD6,477,504.91 along with the statutory interest of 6% and other commercial interest, legal fees among others and to grant unto us any other relief.”

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