PRESS RELEASE: Clarification On Recent Events And Media Reports Regarding Bloom Bank Africa (Liberia) Limited

Monrovia, September 9, 2024

Bloom Bank Africa Liberia Limited ("Bloom Bank" or "the Bank") wishes to address the recent temporary disruption in services that occurred on September 5, 2024 at our Head Office. This brief interruption, now resolved, stemmed from a legacy legal matter inherited during the acquisition of the then Global Bank Liberia Limited (which was subsequently renamed as “Bloom Bank” following the acquisition) and does not impact the bank's overall operations.

Global Bank had previously initiated legal proceedings against Kailondo Petroleum, seeking foreclosure on its properties due to outstanding debts owed to the bank. In response, Kailondo Petroleum petitioned the Liberia Anti-Corruption Commission (LACC), which led to the countersuit currently linked to the recent events. The petition through the LACC resulted in a ruling by a lower court in May 2022, awarding damages to Kailondo Petroleum. Before the acquisition of Global Bank by new investors in January 2023, the Supreme Court upheld the ruling with modifications, adjusting the total compensation to $2.31 million plus court charges, totaling $2,539,065.11. Despite the ruling, Kailondo Petroleum’s indebtedness to Global Bank remains outstanding.

As part of the acquisition of Global Bank, the new investors secured an indemnity from the Central Bank of Liberia to cover liabilities arising from the Kailondo Petroleum’s case. This indemnity was put in place to protect Bloom Bank from financial obligations related to the pre-acquisition litigation. In line with this agreement, the Central Bank made an initial payment of $705,744.78 on July 5, 2024, covering 25% of the settlement. The remaining balance is set to be paid over 24 months, starting from August 2024.

Due to recent leadership changes, a delay occurred in the Central Bank's scheduled payment, prompting the court to take enforcement action against Bloom Bank, which briefly disrupted our operations. However, we can confirm that the Central Bank has resumed its payment process and is honoring its commitment in good faith and reinforcing confidence in Liberia's financial system.

We would like to assure our customers and stakeholders that Bloom Bank has no liability in this matter, as all obligations are covered under the indemnity provided by the Central Bank. The temporary disruption was swiftly resolved, and our operations remain stable and unaffected. We will also continue to explore legal means to recover Kailondo Petroleum’s outstanding indebtedness to the bank. We are fully committed to maintaining financial stability while continuing to provide reliable services to our clients.

We extend our deepest gratitude to the people of Liberia for their continued trust and support in Bloom Bank. Your confidence motivates us to continue making positive strides in delivering financial solutions that contribute to the prosperity of Liberia.

For further inquiries or information, please contact Bloom Bank Africa’s corporate office or via email: info_lr@bloombankafrica.com

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