The Liberia Football Association and its embattled President Mustapha Isola Raji have been sued by CESAF Liberia Ltd. in the tune of US$2,678,718.09 at the Commercial Court of Liberia during its December 2023 sitting.
The lawsuit, filed November 23, 2023 by Jones and Jones, legal counsel of CESAF Ltd, for and on behalf of CESAF Commercial Director and Acting Chairman Kpedee Woiwor (Plaintiff), is seeking remedial damages against the LFA and its President Raji for failure to honor their obligation to the Plaintiff after having completed construction of the new LFA Headquarters in Sakamore Community, Paynesville.
According to the lawsuit, copy of which is in possession of Punch, the plaintiff submits and says that it performed in accordance with the Construction entered into by and between the parties and submitted payment requests to the Defendant but up to the filing of this Complaint, the Defendant has refused, neglected and failed to honor its obligation to the Plaintiff.
“Several demand letters have been written by the Plaintiff and its legal counsel, demanding payment of the principal plus eight percent (8%) interest calculated cumulatively, yielding US$2,678,718.09 as at August 21, 2023 as found in Article V(5) that, “The owner could offset against its own payments any claim against the contractor only unless the claim is verified by the Parties and the Consultant and with the prior written consent of the Contractor. Any unjustified delay in payment shall comprise interest application at the rate of 8% of the payable sum per month. If the unjustified delay in payment compromises the progresses of the works, the Contractor could suspend the activities until the Owner’s default persists, without application of penalty or damages to the Contractor”. Attached hereto are copies of the Demand Letter written by the Plaintiff and Plaintiff’s legal counsel referred to herein and marked as Exhibit P-4 in bulk.
“That the plaintiff herein is a corporate entity duly organized, existing and registered under the laws of the Republic of Liberia, primarily involved in the construction activities. Plaintiff gives notice that it will produce its Articles of Incorporation and its current Business Registration Certificate to substantiate the averment contained herein.
“Further to count one herein above, Plaintiff says it acquired the approval and consent of its Board of Directors to institute the Action of Debt against the within named Defendant. Attached hereto, is the Board of Resolution, marked as Exhibit P-1.
“Plaintiff says that on the 29th of January 2020, ti entered a Design and Construction Contract Agreement with the Defendant herein for the purpose of constructing a three-storey building (ground floor, first floor and second floor) at the S.K.D. Boulevard, Congo Towj, Montserrado County, Republic of Liberia to the toal anout of US1,495,197.66 which was won by the Plaintiff herein predicated upon a Letter of Economic Offer dated March 21, 2017 submitted by the saidPlaintiff through a bid. Attached hereto is the copy of the Construction Contract Agreement referred to herein and marked as Exhibit P-2.
“Plaintiff says that the Defendant elected, nominated and appointed Design Builders, Inc. as the supervising agent representing Defendant during the life of this Construction Contract.
“Plaintiff says that on March 23, 2023, it completed construction of the facility and has same turned over to the Dependent herein, Liberia Football Authority (LFA). Further, the Defendant herein signed a Take Over Certificate and Owner Completion Certificate on March 23, 2023, through its designated representative, Design Builders, Inc. Attached hereto are copies of the Take Over Certificate and Owner Completion Certificate marked as Exhibit P-3 in bulk.
“Plaintiff submits and says that it performed in accordance with the Construction entered into by and between the parties and submitted payment requests to the Defendant but up to the filing of this Complaint, the Defendant has refused, neglected and failed to honor its obligation to the Plaintiff. Several demand letters have been written by the Plaintiff and its legal counsel, demanding payment of the principal plus eight percent (8%) interest calculated cumulatively, yielding US$2,678,718.09 as at August 21, 2023 as found in Article V(5) that, “The owner could offset against its own payments any claim against the contractor only unless the claim is verified by the Parties and the Consultant and with the prior written consent of the Contractor. Any unjustified delay in payment shall comprise interest application at the rate of 8% of the payable sum per month. If the unjustified delay in payment compromises the progresses of the works, the Contractor could suspend the activities until the Owner’s default persis, without application of penalty or damages to the Contractor”. Attached hereto are copies of the Demand Letter written by the Plaintiff and Plaintiff’s legal counsel referred to herein and marked as Exhibit P-4 in bulk.
“Plaintiff says that the Supreme Counrt of Liberia in the case: Blamo v Zulu et al 30 LLR, page 586, Syl. 7, defined debt as follows, “An action of debt is an obligation or promise to pay an amount loaned or due for the services rendered or goods sold and delivered upon a promise, and the refusal to pay same, or it must state that the defendant owes the plaintiff money upon account made in the normal course of a business transaction, in which case the plaintiff must annex to his complaint the account made, stating distinctly and intelligibly the articles with which the plaintiff intends to charge the defendant so as to give the defendant due notice of the facts the plaintiff intends to prove”. In the instant case, Defendant has deliberately refused, reneged and neglected to settle its obligation to Plaintiff; hence Action of Debt will lie to demand the Defendant to pay to the Plaintiff the just obligation due as stated herein above.
“Therefore and view of the foregoing, Plaintiff prays that Her Honor will rule as follows: (1) Adjudge the Defendant liable to the Plaintiff in the amount of US$2,678,718.09; (2) Award the Plaintiff six (6%) percent statutory Interest and 2% successful attorney fees in keeping with law; (3) Grant unto Plaintiff any and all other further relief Your Honor and this Honorable Court may deem just, legal and equitable, with the costs of these proceedings ruled against the Defendant,” the Plaintiff argued.
It remains to be seen how the LFA and its embattled president will wriggle their way out of this portending legal quagmire.
However, while attempts to contact the LFA president Raji or a representative of the Liberia Football Association to comment on the CESAF lawsuit proved futile, a source close to the LFA who spoke to PUNCH on the basis of anonymity said the legal scuffle between CESAF and the LFA might have to do with the reconciliation of “retention fee”. Asked to explain what he meant by retention fee, the source indicated that before final payment is made, both parties have to ensure that items listed under the BOQ were actually purchased and used for the intended purposes, otherwise any shortage could be subtracted from the retention fee.
