September 26, 2023

Judge Peabody Denies Afriland’s First Bank motion to Dismiss USD$ 3.3 million damages for Breach of Deposit Contract

Capitol Hill, Monrovia – Afriland First Bank’s application to dismiss a lawsuit for US$3,3,000,000 in damages for breach of a deposit agreement brought by British businessman Hans Armstrong against Afriland First Bank was denied and rejected by the Sixth Judicial Circuit, Civil Law Court.

In his decision, Judge Peabody noted that Nanborlor Sngbeh, the Senate Secretary, had not provided any official document, such as an original copy of the articles of incorporation, that would have allowed the defendant to create an account in the name of MHM Eko Liberia, a rock quarry firm owned by the Czech Republic.

Armstrong claimed that Afriland First Bank significantly helped Singbeh, whose 30% shareholders were deceiving their investors, who were each 35% shareholders, to wire $122,000 through Afriland First Bank in the name of MHM Eko Liberia in order to obtain a class ‘B’ mining license from the then Ministry of Land, Mine and Energy.

The British businessman claimed that Singbeh withdrew the specified sum with the assistance of the bank without fulfilling the objective for which the funds were sent.

Additionally, Armstrong claimed that the defendant bank opened the account based on a purportedly updated article of incorporation, but Sampson M. Dee, the general registrar of the Liberia Business Registry (LBR), asserted that no such amended article of registration for MHM Eko Liberia existed.

Dee’s letter was in reaction to Armstrong’s attorney, Cllr. Tiawan Gongloe, who asked the LBR Registrar General if the MHM Eko Liberia article of incorporation had ever been changed.

The motion to dismiss the US $ 3.33 million in damages against Afriland First Bank was, however, denied by Judge Peabody.

Reported by: G. Watson Richards

Contact: +231880381808

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