Pressure Mounts On Leonoil To Comply With Court Orders

A legal saga has unfolded as Leonoil Company Limited finds itself entangled in a web of court orders and obligations following a recent ruling by the High Court of Sierra Leone. The company, which was ordered to pay the substantial sum of Le 6,000,000,000 (old leones) into an interest-bearing account within a specified timeframe, seems to be navigating a complex path as it seeks to comply with the judicial directives while addressing its operational challenges.

In a noteworthy development, the High Court mandated that Leonoil Company Limited, the Applicant in the case, transfer the specified sum into a designated commercial bank account within 14 days from the date of the judgment.
Furthermore, both solicitors representing the Defendant/Applicant and the Plaintiff/Respondent were required to act as co-signatories to the transaction, ensuring transparency and accountability in the process. The evidence of compliance was to be submitted to the Court and the Plaintiff/Respondent promptly. Despite the clear instructions from the High Court, Leonoil Company Limited appears to be buying time and seeking alternative avenues to fulfill its obligations. In a letter addressed to the National Revenue Authority (NRA), Counsel for Leonoil, Editayo Pabs-Garnon Esq., made a request for permission to supply 200,000 liters of assorted petroleum products to the Plaintiff, as per the court order.

However, the response from Lawyer Martina Baindu Egbenda, Director of Legal & Corporate Services at NRA, shed light on the regulatory framework governing such transactions.

The letter from the NRA explicitly outlined that any fuel uplifted by Leonoil Company Limited should adhere to the prevailing pricing formula at the time of supply.

Furthermore, it emphasized the importance of complying with tax obligations as stipulated by the Petroleum Regulatory Agency (PRA) pricing formula. The clarification highlighted the responsibility of Leonoil Company Limited to meet its tax obligations in accordance with the established regulations, rather than placing the burden on the Plaintiff, Jaffer Zeghir.

In a bid to stave off immediate financial repercussions, Leonoil sought a stay of execution following the court’s judgment.

Justice Samuel O. Taylor granted the stay and imposed additional conditions on Leonoil, including the payment of the specified sum into a commercial bank account within the stipulated timeframe. The Court also required Leonoil to provide a bond guaranteeing payment to the Plaintiff/Respondent, should the appeal fail, demonstrating a commitment to upholding the integrity of the judicial process.

Amidst these legal maneuvers and deliberations, questions loom over Leonoil Company Limited’s ability to adhere to the court orders and fulfill its financial obligations within the prescribed timeline. The company’s strategic decisions and operational resilience are being put to the test, as stakeholders and observers closely monitor the unfolding legal drama.

It is worth noting that Counsel for the Defendant had previously submitted an Undertaking to the High Court, signifying Leonoil Company Limited’s commitment to satisfying any court judgments against the company. This Undertaking, dated March 18, 2021, served as a pivotal reassurance to revoke an interim injunction that had restrained the company’s operations, underscoring the gravity of legal compliance and accountability in the corporate landscape.

As the legal battle continues to evolve, the spotlight remains firmly on Leonoil Company Limited as it navigates the complexities of judicial directives, compliance requirements, and financial obligations. The outcome of this legal saga will not only shape the company’s future trajectory but also set a precedent for corporate governance and accountability within the Sierra Leonean legal framework.

Investigations into the matter persist as stakeholders await further developments in this high-stakes legal dispute. The intricate interplay between regulatory compliance, financial commitments, and judicial oversight underscores the delicate balance that entities like Leonoil Company Limited must maintain as they navigate the intricacies of the legal landscape.