The Judge of the Debt Court, James E. Jones, has ordered a temporary freeze on several bank accounts belonging to Citadel Mining, a Ghanaian company subcontracted by Western Cluster to transport its iron ore from Bomi County to the Freeport of Monrovia, for failing to settle a US$40,000 outstanding judgment debt to Hans Armstrong, a British national. In 2022, Armstrong filed an action of debt lawsuit before the court, accusing Citadel Mining of failing to comply with his demand for the balance payment under the rental contract agreement, praying the court to hold the mining company liable for the amount of US$34,000 plus 6% statutory interest and 2% successful attorney fees, totaling US$40,000.
The dispute resulted from a July 1, 2022 equipment lease agreement under which the mining company leased a Hitachi 850 excavator machine from Armstrong for a period of two months for a total rental fee of US$84,000, which the mining company paid US$50,000 of, but refused to pay the balance of US$34,000, which was due to be paid on August 15, 2022.
On Friday, June 21, 2024 the judge asked ten commercial banks, together with Western Cluster, to disclose all personal and business accounts belonging to Citadel Mining on or before June 29, 2024.
Ecobank, Guaranty Trust Bank (GTBank), Afriland First Bank (AFB), International Bank Liberia Limited (IBLL), Liberia Bank for Development and Investment (LBDI), United Bank of Africa (UBA), Access Bank, SIB Bank, Citi Trust Bank and Bloom Bank are the commercial banks in which Citadel Mining accounts are blocked.
The banks and Western Cluster were attached to a garnishee proceeding initiated by Armstrong to recover the balance of US$34,000, which is outstanding from the actual judgement sum, from which Citadel Mining paid US$50,000 in 2022.
Judge Jones’ decision to freeze Citadel Mining accounts was triggered by the Supreme Court judgment, denying the mining company’s petition for prohibition, challenging the court’s ruling.
The judge also ordered the banks and Western Cluster to file with the court formal returns stating the total amount of money, properties, and equipment held by them in the name of Citadel Mining.
He further ordered them to submit to an examination in relation to the possession of money, properties, equipment or any portion thereof belonging to Citadel Mining.
He also ordered Western Cluster to pay to the court any money currently in its possession for the benefit of Citadel Mining on or before June 29, 2024.
“The respondent is warned not to dispose of such properties, money, equipment or any portion or kind thereof until directed to do so by this honorable court, and further warns them that if the Respondents/Garnishees should dispose of said money, properties, equipment or machinery or failed to sit to said examination, each of them will be individually held liable for the judgment claimed,” Judge Jones cautioned the defendant.