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GeneralLiberia news

Kailondo and GT Bank tussle over 1.2m debt

-Amidst dossiers to prove otherwise

Liberian businessman Cllr. George B. Kailondo Sr and the Guarantee Trust (GT) Bank are at it again. This time over an alleged accumulated debt of US$1.2M which the bank claims Kailondo owes. But the businessman has argued otherwise, claiming that the Bank has rather defrauded him.

According to court documents filed by GTBank, on September 29, 2017, it entered into a Novation Agreement with Kailondo for the latter to pay the full amount of ACE Global, a Collateral Management Agency’s financial obligation to the bank under a Collateral Management Agreement entered into by Kailondo Petroleum and GTBank Liberia in the tune of US$791,458.21.

GTBank noted that it accepted the offer by Kailondo Petroleum to pay the full amount of ACE Global’s financial obligation in good faith leading to the drawing up of payment terms payable in twenty-four consecutive monthly installments commencing from November 30, 2017, to October 30, 2019.

The bank further explained that it had made several demands to Kailondo to effect payment but to no avail and therefore has instituted the action of debt by attachment praying the court to compel Kailando Petroleum to pay the amount of US$1.2 Million which includes other charges and penalties.

But Kailondo is fighting back, saying the bank is trying to defraud him. On August 26, 2020, GT Bank through its legal representative Heritage Partners &Associates wrote him demanding payment of little over US$1.2 Million as his obligation to the bank based on the 2017 novation agreement.

Kailondo upon receiving the demand letter, wrote the banking demanding to have an audit of his account which had not been done since opening an account there somewhere around 2014.

The audit was to also establish whether he owed that amount because according to him, he had already initiated payment on the 791, 458.21 in the amount of over 414,000. That would have left him with the amount of US$377,000 plus.

Additionally, he further argued that when he agreed to assume full responsibility for ACE Global’s financial obligation it was to be interest-free.

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However, following the audit, it was established that an unauthorized amount of over 900,000 or so was taken out of his account at the bank.

On April 21, 2021, the bank wrote Kailondo Petroleum through its then Lawyer Dr. Jallah A. Barbu, Counsellor at Law and Senior Consulting Counsel at Public Interest Law acknowledging that an unauthorized amount of US$510,000.00 was debited to his account and agreed to credit his account with said amount.

The bank also pleaded with Kailondo Petroleum to publicly clarify through media outlets that GT Bank defrauded his company.

“We thank the management of Kailondo Petroleum for the amicable resolution of this matter and look forward to the fulfillment of your expressed commitment to:

Publicly clarify via reputable media outlets the misinformation that GTBank has defrauded Kailondo Petroleum;

Begin using your account with the bank for business transactions;

Begin repayment of the reconciled loan amount by June 2021,” GTBank wrote.-To be continued

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