Failure on the part of former National Oil Company of Liberia (NOCAL) Chief Executive Officer (CEO) Christopher Z. Neyor to pay back a US$173,490.38 loan to Guaranty Trust Bank (GTBank) has led him into trouble at the Commercial Court at the Temple of Justice.
Neyor with his Morweh Energy Group is expected to stand trial shortly.
On December 22, 2015, the bank alleges that it granted Neyor, also CEO of Morweh Energy Group, a “Time Loan Facility” valued at US$150,000 for a period of six months to partly finance his personal obligations.
According to the bank, Neyor’s ‘deliberate refusal to settle his US$150,000 debt,’ including other costs, such as the 14 percent interest on the loan and 17 percent legal fees, summed-up the total amount to US$173,490.38.
Further to the complaint, the bank’s lawyer, Attorney Jonathan Massaquoi, claimed that the credit facility provided for six equal monthly installment payments of US$25,000.
Additionally, Atty. Massaquoi said the defendant signed a domiciliation agreement promising to have all of Morweh’s assets sold if he did not meet up with the terms and conditions of the loan.
Under a domiciliation agreement, a unique code is obtained from the bank which identifies the agreement between the bank and the customer.
“But Defendant Neyor has refused and neglected to make one single payment against the facility,” Atty. Massaquoi complained to the court.
They claimed that the “Time Loan Facility” was granted to the company at a rate of 14 percent.
The bank also said it issued several written communications to Mr. Neyor before taking the issue to court.
The suit named one lot of land situated in Oldest Congo Town as some of Neyor’s security collateral for the loan, which he had earlier registered in favor of the bank’s security interest during the loan transaction.
They told the court that after several failed attempts to recover the amount from Neyor, they hired the services of an external lawyer at a rate of 17 percent service fee of the outstanding amount, to file the suit against the defendant at the court.
“This action is intended to recover from the defendant the default amount of US$173,490.38, plus all other costs of recovery consistent with the Time Loan Agreement,” the bank pleaded in the suit.
It may be recalled that Neyor contested the 2014 mid-term senatorial election for Montserrado County, but lost. He is yet to respond to the bank’s claim.