By E. Geedahgar Garsuah
MONROVIA: It seems the Guaranty Trust Bank-Liberia Limited is fast becoming entangled with credibility problems owing to the increasing number of allegations being made against it by some of its customers.
The allegations made against the bank in recent years ranged from manhandling of some of its employees to tampering with customers’ accounts.
The bank was accused by former Deputy Governor of the Central Bank of Liberia (BCL), Charles Sirleaf, for allegedly tampering with his account by withdrawing huge sum of money.
GT-Bank was also accused by Nathaniel F. McGill, former Minister of State for Presidential Affairs and Ex-Chief of Staff in the Office of President George Manneh Weah for its alleged withdrawal of funds from the accounts of then Minister McGill.
Now, a popular businessman, Cllr. George Kailondo/ of Kailondo Petroleum Incorporated has raised similar unapproved withdrawal allegations against the bank.
Since 2015, the Bank and Kailondo have been pulling and hauling on a number of confidence crises as it relates to Kailondo Petroleum debt payment.
Surprisingly, GT-Bank, in a communication dated on June 28, 2021 under the signature of Guaranty Trust Bank (Liberia) Limited, Executive Director, Mr. Prince Saye has pointed to several inconsistencies in a “Action of Debt By Attachment” filed against Kailondo Petroleum Incorporated at Debt Court of Montserrado County presided over by Judge James E. Jones.
In a recent legal suit dated May 2, 2023 with eight-count against Kailondo Petroleum Incorporated which is owned by Cllr. George Bobby Kailondo Sr., Guaranty Trust widely known as GT-Bank is seeking the court to ensure (KP) pay the amount of US$1,231,521.01 as indebtedness to the bank.
GT-Bank in its latest complaints alleged that Kailondo Petroleum had connived and colluded with ACE Global and surreptitiously removed several quantities of its (GT Bank) petroleum products from the Liberia Petroleum Refinery Corporation (LPRC) storage which was a subject of a Collateral Management Agreement (CMA).
According to the GT Bank, Kailondo Petroleum and its partner, ACE Global removed the petroleum products which was a subject of a CMA without the consent of the bank.
The Bank in its lawsuit further that both Kailondo Petroleum ACE Global had refused to settle its financial liability with the bank since the sale of the products for which it is seeking the intervention of the debt court to ensure both accused settle their financial indebtedness.
GT Bank Lawsuit: “Wherefore and in view of the foregoing, Plaintiff hereby institutes this action of Debt by Attachment, praying Your Honor and this Honorable Court to enter final judgment finding Co-Defendants liable to Plaintiff in the sum of certain amount of US$1, 231,521.01 (United States Dollars One Million Two Hundred Thirty-One Thousand Five Hundred Twenty-One, and Zero Point One Cents), inclusive of the stipulated interest rate and legal costs in these proceedings, and order the Co-Defendant to pay the sum certain amount sue for herein and grant unto Plaintiff any and all further relief your Honor may deemed proper, equitable and legal under the given circumstances.”
But the same GT-Bank on June 28, 2021 communicated to Kailondo Petroleum Incorporated via its legal representation, Cllr. Jallah A. Barbu speaks to a rather different tale contrary to what is being alleged in the bank’s action of debt by attachment against defendant.
GT-Bank’s June 28, 2021 letter to the defendant (Kailondo Petroleum) through its legal counsel was in respond to a May 24, 2021 communication in which the defendant rise several qualms with GT Bank on grounds of several unscrupulous transactions with defendant’s account at the bank.
In several paragraphs in GT Bank’s 6-page communication captioned: “Post-Reconciliation Exercise-Kailondo Petroleum Accounts” in response to the defendant’s qualms of mishandling his saving account, the GT-Bank is recorded as extended apology to Kailondo for the unauthorized transferred of funds from his (Kailondo) accounts.
The opening paragraph of GT-Bank June 28 letter states: “The Bank has concluded a review of its internal records and has obtained confirmations requested from some of the parties to the LC transaction(s) including one of its confirming banks-Banque de Commerce et de Placements (BCP) of Geneva, Switzerland. Based on the review concluded of its records and the decision of the bank, acting in good faith but on a “without prejudice” basis, to accept responsibility for records not currently available, we hereby submit below the Bank’s detailed responses to each of the material claims of KP contained in your May 22, 2023 letter.”
GT-Bank responding to Kailondo’s uneasiness of tempering with his saving account stated: “Despite diligent search, the Bank has been unable to find copies of the LC Agreement and the Offer Letter in connection with which it charged KP’s account with the amount of US$50,000.00 as 2% commission on the value the LC amount. While the Bank believes that this transaction was legitimate and the charging of the commission was not arbitrary but based on requisite authorization at the time, the absence of the duly-signed LC Agreement and the Offer Letter leaves the bank with very little option but to reverse the transaction and credit KP’s account with the corresponding US$50,000,00 debited.”
The GT-Bank also admitted to transferring US$62, 500, 00 from Kailondo saving account which it says up to press time documentation to prove that the transferred was authorized by Kailondo cannot be found.
“The Bank has also not succeeded up to date in finding copies of the LC Agreement and the Offer Letter for the LC in respect of which it charged the account of KP with the amount of US$62, 500, 00 representing 2% commission of the LC amount of US2.5 million. Despite the Bank’s firm belief this transaction was legitimate and supported by the required authorization at the time or execution, the absence of duly-signed LC Agreement and the Offer letter leaves the Bank with very little option but to reverse the transaction and credit KP’s account with the corresponding US$62,500.00 debited.”
With the litany of admittance to errors on GT Bank’s part, financial experts are left wondering as to how serious GT-Bank’s claim that KP and ACE Global unilaterally without its consent remove petroleum that is a subject of a Collateral Management Agreement (CMA) from the LPRC.
What is more of is a concern is that GT-Bank Liberia Limited, as a financial institution do not have a spelled out guidelines on how to handle financial documents by not accounting for several customers as in the case of the former CBL Deputy Governor, among others. Investigation continues.