GT Bank Defrauds Kailondo Petroleum -Bank Admits As Court Holds GT Liable for Wrongdoing

MONROVIA : It has been uncovered that the Guaranty Trust (GT) Bank wrongfully executed several financial transactions with accounts Kailondo Petroleum and Cllr. George Kailondo since 2015 causing the bank to bear liability to pay to the victims of these wrongful final transaction general damages in the amount of US$3,250,000 for all the inconveniences, losses and embarrassment caused the plaintiff by the defendant.

The amounts are in consideration of the illegal debits/withdrawal from plaintiff’s accounts and the damaging of plaintiff’s reputation by the defendant, according to ruling of the Civil Law Court “B” presided over by His Honor, Yamie Quiqui Gbeisay, Sr. on July 20, 2022.

Documentary narratives corroborating the court’s ruling collated more dubious transactions in the accounts of George B. Kailondo Sr. and his Kailondo Petroleum Company, with one of the documents by the GT Bank establishing and confirming in 2021 one of the dubious and unauthorized transactions in the Liberian businessman accounts of an authorized 510,000 United States dollars debited to the Kailondo Petroleum, for which the Bank promised to put the monies back.

The Bank also pleaded with the businessman to save the bank from further public ridicule through a damage control press release in which the bank will be exonerated from the dubious transactions.

After a tipoff by some sources in the bank for Mr. Kailondo to request for an audit on his accounts, Cllr. Kailondo opted for an audit on his accounts when it was reported to have established that the bank did many dubious transactions without authorization from Cllr Kailondo.

A document in possession of this paper has shown that the GTBank addressed a letter to a counsel of the businessman dated April 22, 2021 in which the bank admitted to the crime of debiting US$510,000 to the Account of Kailondo Petroleum and promised to put the monies back.

It was in the communication that GTBank pleaded with the businessman not to expose the bank to further public ridicule. The bank management pleaded with the businessman to do a damage control press release in which the bank will be exonerated from the dubious transactions.

Kailondo said the Bank wrote him on August 26, 2020, through its legal representative Heritage Partners & Associates, demanding payment from the Kailondo Petroleum a little over US$1.2 Million as his obligation to the bank based on the 2017 novation agreement.

Upon receiving the letter of demand, Kailondo wrote the bank demanding to have an audit of his account which had not been done since opening of the account 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, which would have left him with the amount of more than US$377,000.

In addition, Kailondo further argued that when he agreed to assume full responsibility for ACE Global’s financial obligation that was accordingly interest-free.

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; while the bank on April 21, 2021, wrote Kailondo Petroleum through its then Lawyer Dr. Jallah A. Barbu, Counselor 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 GTBank 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,” GT Bank wrote.

Meanwhile, the bank claims Kailondo owes it an alleged accumulated debt of US$1.2M, but the businessman has argued otherwise, claiming that the Bank has rather defrauded him.

According to court documents filed by GT Bank, 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.

GT Bank 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, a period inclusive of the time Kailondo claim the GT Bank has been defrauding him and his Kailondo Petroleum.

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 Kailondo Petroleum to pay the amount of US$1.2 Million which includes other charges and penalties, claims Kailondo has refuted when he spoke of his demand to audit his account which exposed the bank in withdrawing unauthorized amount of over 900,000 from his account.

All of these claims by the GT Bank followed the Civil Law Court Court Mandates GT Bank to Pay Over US$3 million to Kailondo.

It can be recalled that the Civil Law Court found Guaranty Trust Bank (Liberia) Limited liable for action of damages for wrong doing in the case involving the bank and Kailondo Petroleum, by and through its Chief Executive Officer, Cllr. George B. Kailondo, ordering the bank to pay Kialondo US$3,250,000 (three million two hundred fifty thousand United States dollars) in general damages and US$420,000 (four hundred twenty thousand) plus 6% interest per year (from 2015) as special damages.

The Court’s judgment, it said in its determination and final judgment that the claim of the plaintiff (Kailondo) is hereby sustained and that the defense and counterclaim of the defendant are overruled, denied and dismissed.

Accordingly, it is the ruling and final judgment of the Civil Law Court that the defendant is adjudged liable to the plaintiff and is hereby ordered to pay to the plaintiff as special damages the amount of US$420,000 plus six percent legal interest per annum, calculated from the year 2015 up and including the date of final judgment in this case.

Additionally, the defendant is also adjudged liable to pay to plaintiff as general damages the amount of US$3,250,000 for all the inconveniences, losses and embarrassment rendered the defendant in the illegal debits/withdrawal from plaintiff’s accounts and the damaging of plaintiff’s reputation by the defendant. This court also rules that the defendant is liable to pay all costs of these proceedings,” Judge Gbeisay’s final judgment observed, saying that the court finds and holds that it is satisfied that the plaintiff established the liability of the defendant and the resultant damages arising therefrom by preponderance of evidence.

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