By Lincoln G. Peters
The management of Activa International Insurance Company, which has served as a surety for Western Cluster and Citadel Mining Services, would likely be arrested if it cannot pay the judgment amount of US$430,920, delivered on July 14, by the Debt Court for Montserrado County.
The insurance company became involved in the case after posting a US$750,000 indemnity bond alongside a motion to vacate the attachment placed on the properties of Western Cluster and Citadel Mining Services, because of the lawsuit filed by Action of Debt.
The debt resulted from a Hitachi 850 equipment rental agreement between Citadel Mining Services and Horizon Transport and Construction Company, which was owed by Hans Armstrong, a British investor.
As part of the bond arrangement, according to court documents, Activa International Insurance Company is responsible for the day-to-day appearance of the defendants, Western Cluster and Citadel Mining Services, whenever they are needed by the court.
The insurance company also guarantees to take all responsibilities to ensure that the defendants pay the debt, if the outcome of the court’s judgment goes against them.
A judicial source also claimed that Western Cluster and Citadel Mining Services paid Activa International Insurance Company the amount of US$40,000 to secure the temporary removal of the attachment placed on the duo properties in both Monrovia and Bomi County.
Unfortunately, when the judgment was delivered on July 14, 2025, the court held Citadel Mining Services liable and absolved Western Cluster from any liability, as it had no involvement in the agreement between Citadel Mining and Horizon.
Immediately after the judgment, a payment order was issued mandating Citadel Mining to pay. However, the Sheriff’s (court officers’) return to court shows that Citadel Mining’s head office in Monrovia and its operation site in Bomi County had been closed, and the whereabouts of the management were unknown, making it impossible to satisfy the judgment against it.
The Sheriff’s return prompted the Horizon legal team to apply to the court, holding the surety liable for the judgment amount, which was granted by Judge James E. Jones, shifting the responsibilities to Activa.
Meanwhile, Activa International Insurance Company is expected to appear before the court today.
According to the lawsuit, Citadel Mining, a Ghanaian subcontractor of Western Cluster, entered into an equipment lease agreement in July 2022 to rent Armstrong’s Hitachi 850 heavy machine for use on Western Cluster’s concession site in Bomi County.
However, the suit claims that, from August 2022 to May 31, 2023, Citadel Mining took Armstrong’s equipment to the Western mining site and began using it there without making any payment, with each month amounting to US$84,000, totaling US$378,000.
The machine was still in Citadel Mining’s possession and being used in the Western Cluster’s concession area.
However, Western Cluster’s involvement with the suit is based on the doctrine of respondents superior, where the principal is held liable for the indebtedness of the agent, Citadel Mining, the second defendant, the lawsuit argued.
The total indebtedness of the defendants amounts to US$378,000, reflecting eight and a half months of usage, including 6 percent interest, totaling US$430,920. They continue to maintain actual and physical usage of the machine in the operational area of Bomi County. He did not know the exact location of the equipment,’ Armstrong’s suit claims.- Edited by Othello B. Garblah.
