The case revolves around an ongoing litigation involving shareholders of Medtech Scientific Liberia Limited, in which the Supreme Court has ruled that the parties return to the status quo ante.
Monrovia, August 28, 2024- A circular sent to exporters and importers by Liberia’s Customs Commissioner Saa Saamoi hours after the Chambers Justice Yussif D. Kaba had ordered parties in the ongoing Medtech Scientific Liberia Limited dispute to return to status quo ante appears to have defied the justice’s ruling.
The case involves Madame Angela List of Ntore Dame and Mr. Ramzi Abou-Hassan of MTS Inspection Services Limited. Both parties, acting together, entered into a Destination Inspection Agreement with the Government of Liberia in 2021, establishing Medtech Scientific Liberia Limited as a Special Purpose Vehicle of Medtech Scientific Limited based in Dubai.
The company’s sole intent is to conduct Destination Inspection on behalf of the Government of Liberia.
According to the agreement, Medtech Scientific Liberia Limited, jointly operated by Mr. Abou-Hassan and Madame Angela List, is entitled to 80% of the fees collected, while the Government of Liberia, through the Liberia Revenue Authority, gets 20%.
As per the agreement, the Ministry of Finance Development Planning was to instruct Ecobank Liberia Limited to open an escrow account in which exporters and importers of goods subjected to destination inspection were to pay all fees. Ecobank Liberia Limited, by the same agreement, is required to open an automatic account where it would have distributed the various percentages into beneficiaries’ accounts as required by the contract.
However, months after signing the agreement, Mr. Abou-Hassan allegedly redirected the agreement, which gives Medtech Scientific, based in Dubai, a 100% share against what was previously agreed upon by the government of Liberia and attested by the Central Bank of Liberia through and arrogated to his MTS Inspection Services as the Special Service Vehicle.
But Mr. Abou-Hassan rerouted the entire agreement and allegedly opened several accounts at The Guarantee Trust Bank Liberia Limited, International Bank Liberia Limited, and Ecobank against the initial agreement.
In his ruling on Tuesday, August 27, Justice Kaba ordered the parties to return to status quo ante, adding that Medtech Scientific Liberia Limited resumed implementing the Destination Inspection agreement in accordance with the Special Purpose Vehicle’s rights and responsibilities as enshrined in the DI agreement.
In his ruling, Justice Kaba also noted that MTS Inspection Services Limited’s operation as the Special Service Vehicle was ordered to stay.
He furthered that 4th respondent Ecobank Liberia Limited, 5th respondent Guarantee Trust Bank Liberia Limited, and 6th respondent International Bank Liberia Limited should freeze and prohibit the transfer of all funds from the accounts established by Mr. Abou-Hassan in the name of Medtech Scientific Limited and MTS Inspection Services Limited’s alleged capacity as Special Purpose Vehicle under the term of the DI.
Justice Kaba, in his ruling, also ordered that the Government, through the Ministry of Finance Development Planning, immediately instruct Ecobank to open an escrow account in the name of the Government of Liberia in which the fees paid by exporters and importers are deposited consistent with the term of the Destination Inspection agreement.
Justice Kaba also ordered the Liberia Revenue Authority to inform and instruct all exporters and importers to pay appropriate fees into said account, which the Government of Liberia will establish through the Ministry of Finance Development Planning at the Ecobank.
The ruling also ordered Medtech Scientific Liberia Limited to immediately open an escrow account to be held jointly by the parties consistent with the agreement.
However, in his circular released, Mr. Saamoi, the Commissioner of Customs, in reference to Justice Kaba’s ruling, wrote: “In the wake of the Supreme Court order, the Liberia Revenue Authority informs the general public that all customs declaration will now be submitted directly to customs under procedure Code IM4 (CPC-IM4) without the requirement for inspection certification, pending resolution of the matter. Meanwhile, all other procedures, including payment, remain unchanged until further notice…”
His circular acknowledges the Supreme Court’s Chambers Justice ruling. Still, it appears to instruct exporters and importers to continue to deposit fees into the accounts created by Mr. Ranzi Abou-Hasan at the various commercial banks.
His circular came as MTS Inspection Service issued a statement suspending all its services. -writes Othello B. Garblah
