By: Frank P. Martin
GBARNGA, BONG COUNTY: The State-owned Forestry Development Authority (FDA), represented by its Managing Director, Rudolph J. Merab Jr., has filed a petition in the Ninth Judicial Circuit Court in Bong County against multiple respondents, including a Liberian-Chinese Company managed by several stakeholders.
The stakeholders include Chaolong Zang, Guoping Zang Jr., Mehmet Onder Erem, and Terrence Collins, associated with CTL Industries Ltd.
The FDA is seeking to confiscate and auction wood it claims was illegally sourced and processed.
According to several documents presented to the Court in Bong County, Terrence Collins, a young Liberian entrepreneur, is major shareholder in the Liberian-Chinese Company CTL.
The case, presided over by Judge J. Boima Kontoe, has seen a significant development as the respondents, through their legal representatives from the Garlawolu and Associates Law Offices have filed a motion to dismiss the FDA’s petition.
The motion to dismiss is based on the argument that the FDA lacks the legal capacity to sue, as outlined in Section 11.2 of the Liberian Code of Laws.
The respondents argued that CTL Industries Ltd., a registered corporation operating under Liberian laws, had ceased its logging operations since 2021 due to economic constraints.
They contended that the FDA’s petition is baseless because the Corporation was not active during the time the alleged illegal activities took place.
The respondents have provided documents in support of their claims, including the Articles of Incorporation of CTL Industries Ltd.
“That Movants are employers and shareholders of CTL Industries, Ltd which said corporation is a duly registered corporation operating under the laws of Liberia. Movants say that they shut down the operations of the corporation since 2021 due to some economic constraints faced by the corporation,” lawyers representing the company told the court.
The Company’s lawyers indicated that there are several legal documents of Movants’ that are available as its (MOVANTS’) EXHIBIT MI in bulk to form a cogent part of Movants’ Motion.
“That the Movants move Your Honor and this Honorable Court to dismiss Respondent’s Petition based on 11.2 (e) which Movants quote hereunder thus: “At the time of service of his responsive pleading, a party may move for judgment dismissing one or more claim for relief asserted against him in a complaint or counter complaint on any of the following ground:
(E) that the party asserting the claim has no legal capacity to sue; Movants aver and say that Respondents’ Petition should be dismissed in its entirety based on section 11.2 (e) as quoted supra on ground that the respondent filed a Petition to Your Honor and this Honorable Court without legal capacity on the basis
That the two (2) Board Resolution annexed to Respondent’s petition has been expired and same is moot when in fact and in truth such Board Resolution should have derived from the current Board of Directors of Respondent instead of expired Board Resolutions emanating under the signatures of the former Managing Director, Hon. C. Mike Doyan, and former Board Chairman, Hon. Harrison Kanwea, which renders the entire petition a fit subject for dismissal,” the movants added.
The Articles of Incorporation revealed that CTL Industries, a Liberian-Chinese partnership group was established for the purpose of engaging in logging and related businesses, including the processing and exportation of logs.
The corporation’s shareholders include Oguzhag Yilmaz, Mehmet Onder Erem, Guoping Zang Jr., and a Liberian, Terrence Collins, who hold various positions within the company.
The Article of Incorporation: “the general nature of the Business to be transacted and carried out by the Corporation shall be to engage in any lawful act or activities for which a corporation may now or hereafter be organized under the Liberia Business Act; including but not limited to the followings:
To engage in the business of logging, that is: i) to fell, extract process market, buy, sell, resell and export logs and all other forest related products, i) to operate veneer factories, for the purpose of preparing, processing, and otherwise manufacturing and dealing in, logs and related forest products,
(ii) To manage and operate the business of other logging companies; to engage in the general timber business, including timber, milling, and allied interests, together with other things necessary in the full and compete operation thereof; and to engage in a general timber”.
However, the respondents have requested the Court to dismiss the FDA’s petition entirely, emphasizing that the corporation has not been operational since 2021, and therefore, there is no legal basis for the confiscation and auction of any wood associated with CTL Industries.
In the case, both parties are now awaiting the Court’s decision on the motion to dismiss.
The outcome the respondents’ petition will likely have significant implications for the logging industry as well as encouraging foreign investors to partner with Liberians in creating jobs for residents of those investments communities.
