Energy Services Company SL Ltd (ESCO), the Sierra Leonean local partner in the Bumbuna II hydroelectric project, has secured a default judgment of USD $484,132 against foreign partners Joule Africa, Joule Bumbuna Holdings, and Seli Hydro Power SL Ltd, the special project vehicle.
The local partner petitioned the courts after ESCO’s shareholder agreement for the development of the Bumbuna II project was unilaterally terminated on October 28, 2019, by Seli Hydro Power Ltd through its Director, Paul Kunert. At the same time, the defendants also terminated ESCO’s Management Services Agreement as well as the contract of ESCO’s Executive Chairman, Mr Patrick Olu Beckley.
According to court filings, Joule Africa and Seli Hydro unilaterally terminated a settlement offered by the defendants which required Mr Beckley to issue a press release falsely claiming that he voluntarily resigned due to a debilitating medical condition. The settlement offer fell through and Mr Beckley petitioned the Commercial Court of Sierra Leone demanding justice for unlawful termination and the payment of outstanding debts.
The court awarded ESCO the default judgment, a decision widely viewed as a landmark victory for Sierra Leone’s Local Content policy, affirming protections for domestic businesses engaged in major infrastructure projects.
Welcoming the judgment, Mr Beckley said the ruling represents “a win for Local Content policy and local partners” and urged the government to safeguard Sierra Leonean companies with minority interests in major mining and infrastructure businesses. He further cautioned foreign investors against muzzling of minority interests and political biases, and stressed the importance of adopting ethical business conduct.
Editor’s Note: ESCO and Mr Beckley are represented by Sorie & Bangura of Ellen Chambers, 1st Floor 16 Adelaide Street, Freetown, Sierra Leone.