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Sunday, January 25, 2026

Liberia: Court Seals LEC Headquarters Over $309K Debt to Swedish Supplier

Sheriffs from the Debt Court on Tuesday sealed the headquarters of the Liberia Electricity Corporation (LEC) in Monrovia after the utility failed to comply with a court order to pay US$309,929.40 owed to Swedish firm ELTEL Network for electrical materials supplied nearly a decade ago.

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Sheriffs from the Debt Court on Tuesday sealed the headquarters of the Liberia Electricity Corporation (LEC) in Monrovia after the utility failed to comply with a court order to pay US$309,929.40 owed to Swedish firm ELTEL Network for electrical materials supplied nearly a decade ago.

The writ of execution issued January 5, 2026, and signed by Judge James Jones, authorizes sheriffs to seize and sell LEC assets until the debt is satisfied. If assets prove insufficient, the order directs sheriffs to arrest Managing Director Mohamed Sheriff and other senior executives for contempt of court.

The enforcement action follows a September 30, 2025 ruling by an arbitration panel appointed by the Debt Court. The panel, after four months of reviewing invoices, purchase requests, and delivery notes, concluded that LEC was liable for US$309,929.40 in unpaid debt to ELTEL Network.

The dispute stems from a 2016 agreement under which ELTEL supplied LEC with lowvoltage (LV) electrical materials. These materials, used in control rooms, distribution systems, lighting, and security applications, were delivered, but payment was never completed.

ELTEL Network, represented by Attorney in Fact Hans Armstrong, a British national, initially sought US$434,459 in unpaid debt. LEC contested the claim, arguing over invoices and obligations. After reconciliation, the arbitration panel reduced the liability to US$309,929.40.

Despite the adjustment, LEC has consistently refused to settle the debt. ELTEL executives say repeated reminders, including letters and emails sent between 2019 and 2020, were ignored. In January 2020, ELTEL wrote directly to then CEO Monie Captan, urging settlement of the balance. Captan allegedly failed to respond, leaving the company with no option but to pursue legal redress.

ELTEL claims it offered LEC a settlement in 2019–2020: a direct payment of US$360,000, which would have waived US$74,452 of the total debt. LEC rejected the proposal. The Swedish company maintains that its patience was exhausted after years of correspondence yielded no resolution.

Judge Jones’ ruling underscores the seriousness of LEC’s failure to honor contractual obligations. The court’s order not only threatens seizure of corporate assets but also personal accountability for its leadership.

The case highlights broader concerns about governance and financial management within Liberia’s public utilities. LEC, already struggling with operational inefficiencies and public dissatisfaction over unreliable electricity supply, now faces reputational damage from the enforcement action.

The shutdown of LEC’s headquarters signals a potential disruption in administrative operations, though it remains unclear how service delivery will be affected. The case also raises questions about Liberia’s ability to manage international contracts and maintain credibility with foreign suppliers.

For ELTEL Network, the ruling represents a partial victory after nearly nine years of litigation. For LEC, it is a stark reminder of the consequences of prolonged debt disputes and the risks of ignoring settlement opportunities.

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