LEC Ordered to Pay $415,000 in  Debt Case

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ADNews-Monrovia,Liberia: Liberia Electricity Corporation (LEC) has been ordered by the Debt Court for Montserrado County to immediately pay more than $415,000 to a Swedish engineering firm after acknowledging liability in a dispute dating back nearly a decade.

The court ruled that LEC owes ELTEL Network a total of $415,327.08, comprising a principal judgment of $364,322 and additional charges for interest, legal fees and court costs. The amount includes $21,859.32 in interest calculated at 6 percent per year, $7,286.44 in attorney’s fees and $21,859.32 in court costs, according to court records.

The payment order followed a hearing held Tuesday, Feb. 3. Court documents show that LEC had proposed making a 25 percent down payment ,about $103,832 ,toward settling the debt. However, the proposal was not formally presented to the court through a motion for a structured payment plan.

As a result, lawyers for ELTEL Network sought a payment order for the full amount, which the court granted.

In a payment order dated Feb. 4 and signed by Assistant Clerk Hoses Nelson, the court instructed LEC to “make immediate payment to the Sheriff of the Debt Court for Montserrado County” for the full judgment sum. The order warned that failure to comply would result in enforcement through a writ of execution, authorizing the court to seize assets to satisfy the debt.

The order further directed the court’s sheriff to file official returns documenting the manner in which the payment order was served.

The debt stems from a 2016 supply contract under which ELTEL Network provided LEC with low-voltage electrical materials used in power distribution systems, control rooms, lighting infrastructure and security networks.

Court filings show the dispute has lingered for years, with claims and counterclaims over materials supplied under the agreement. Records indicate that ELTEL made repeated efforts to resolve the matter outside of court. Between 2019 and 2020, the company reportedly offered to accept a direct payment of $360,000, waiving more than $74,000 in outstanding claims.

In a Jan. 1, 2020, letter to LEC’s then chief executive officer, ELTEL cited earlier commitments by the utility to settle the debt. When those efforts failed, the company said it pursued legal action.

The ruling places LEC under increased financial pressure and has drawn criticism over the handling of the case. The outcome could have broader implications for the state-owned utility’s finances and day-to-day operations as it seeks to meet the court’s order.

 

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