In a sudden turn of events, the National Oil Company of Liberia (NOCAL) and the Ministry of Finance and Development Planning have reportedly sought a settlement after a court ordered their closure. The court action was a result of a long-standing dispute over a $764,762 debt owed to former NOCAL officials, Vida A. Mensah and Cllr. Idella Cooper-Shannon. The dispute dates back to NOCAL's 2015 restructuring.
The court's order, issued by Chief Judge Eva Mappy Morgan, directed the closure and sealing of NOCAL and the Ministry of Finance, with immediate effect. The order was served on September 23, and less than 24 hours later, NOCAL executives, including Vice President for Finance and Chief Financial Officer Emmanuel T. Azango, appeared before the Commercial Court to appeal for a settlement.
The dispute originated from NOCAL's 2015 restructuring, when the state-owned company was in financial difficulty. Former executives, including Mensah and Cooper-Shannon, rejected the reduced severance terms offered and pursued litigation. The current liability of $764,762 includes interest and penalties accumulated over the years.
According to Azango, the court required payment of 25 percent of the obligation, which would be approximately $191,190.50 if calculated against the reported liability. However, the court document does not specify the exact amount, leaving room for clarification. Negotiators will need to settle the outstanding debt and determine which institution bears responsibility.
The Finance Ministry's presence in court on Thursday suggests that the Government's central financial authority is now directly engaged in the dispute. Azango has stated that the obligation is an old debt and that payment rests with the Government of Liberia, particularly the Ministry of Finance.
A settlement would ease the immediate pressure from the contempt and closure proceedings, but it would not address the wider questions surrounding the debt. The NOCAL case highlights the challenges faced by Liberia's public institutions in managing inherited liabilities and the need for timely resolution of such disputes.
The outcome of the settlement talks remains uncertain, and it is unclear whether the parties will reach an agreement. If a settlement is reached, it could bring closure to a decade-old dispute that has generated significant attention and raised questions about Liberia's management of its inherited obligations.
Key points
- The National Oil Company of Liberia and the Ministry of Finance and Development Planning face a $764,762 debt owed to former officials.
- The court ordered closure and sealing of the institutions, but they have reportedly sought a settlement.
- The dispute dates back to NOCAL's 2015 restructuring and has accumulated significant interest and penalties over the years.
