A High Court judge in Sierra Leone has granted a stay of execution in a fuel supply dispute between Jaffer Zeghir, Chief Executive Officer of SKM Group of Companies and Leonoil Company Limited.
According to the particulars of the case, Zeghir purchased 200,000 liters of fuel from Leonoil in 2021 for Le 1.29 billion (old Leones) at the pre-hike price of Le 7,000 per liter. Leonoil refused to deliver the fuel after a fuel price increase, citing confusion over tax payment responsibility.
Zeghir sued and won a judgment in February 2024, ordering Leonoil to deliver the fuel.
Leonoil appealed the judgment and requested a stay of execution, arguing “special circumstances” due to the tax issue. Justice Samuel O. Taylor granted the stay on the conditions that Leonoil must deposit Le 6 billion (old Leones) in an interest-bearing account within 14 days and Leonoil must guarantee payment of the judgment amount plus interest if they lose the appeal.
Leonoil claimed the National Revenue Authority’s (NRA) late response regarding tax responsibility created a “special circumstance.” Zeghir Opposed the stay, arguing that Leonoil failed to act during the trial by not joining the NRA as a party to clarify the tax issue. He also pointed out Leonoil’s signed undertaking to accept any court judgment.
Whether Leonoil will comply with the court order and deposit the Le 6 billion remains to be seen.
