Monrovia – Bloom Bank Africa Liberia Limited has addressed the circumstances surrounding a brief service disruption at its head office on September 5, 2024. The bank clarified that the interruption was linked to an ongoing legal dispute inherited from its acquisition of Global Bank Liberia Limited.
In a press statement, Bloom Bank reassured the public that its operations remain stable, despite the temporary setback caused by court action.
The dispute originates from a long-standing legal battle between Global Bank and Kailondo Petroleum, which pre-dates Bloom Bank’s acquisition of Global Bank in January 2023. The case began with foreclosure proceedings initiated by Global Bank against Kailondo Petroleum over unpaid debts. In response, Kailondo Petroleum petitioned the Liberia Anti-Corruption Commission (LACC), sparking a countersuit.
In May 2022, a lower court ruled in favor of Kailondo Petroleum, awarding damages. The Supreme Court later upheld the ruling, with modifications, adjusting the total compensation to US$2.31 million, plus court costs, bringing the total to US$2.53 million. Despite this, Kailondo Petroleum’s debt to the bank remains unpaid.
Bloom Bank explained that the recent disruption stemmed from a delay in payments from the Central Bank of Liberia, which had indemnified the new investors against liabilities from the Kailondo Petroleum case as part of the acquisition agreement. According to a bank spokesperson, the Central Bank made an initial payment of US$705,744.78 in July 2024, covering 25% of the settlement. The remaining balance is set to be paid over a 24-month period.
However, changes in the Central Bank’s leadership caused delays in the scheduled payments, prompting court enforcement action against Bloom Bank. This briefly disrupted operations at the bank’s headquarters. “The Central Bank has since resumed its payment process and is honoring its commitment in good faith,” a Bloom Bank representative confirmed, stressing that the matter has been resolved.
The bank reiterated that it bears no financial responsibility for the dispute. “Bloom Bank has no liability in this matter, as all obligations are covered under the Central Bank’s indemnity,” the statement read. The bank also noted that it is exploring legal options to recover the outstanding debts from Kailondo Petroleum.
Bloom Bank reaffirmed its commitment to maintaining financial stability and uninterrupted services, while thanking the Liberian public for their continued support.
