The Supreme Court has asked the National Investment Bank (NIB) not to pay the $60million judgment debt the High Court in Accra asked it to pay Dominion Corporate Trustees Limited in 2013.
The Commercial Division of the High Court, presided over by Mr Justice Amadu Tanko, on February 21, 2013, gave judgement against NIB in favour of Dominion Corporate Trustees Limited of Channel Islands, UK, for the recovery of the sum of US$60 million, plus interest, with effect from January 29, 2009, to the date of final payment.
The Court of Appeal, on July 4, 2013, stayed the execution of the judgement of the Commercial Court pending the outcome of an appeal filed by the NIB.
The bank, whose debt had doubled with a daily interest of $20,000), asked the Court of Appeal to quash the Commercial Court’s decision because it was defective.
NIB lost the appeal and proceeded to the Supreme Court.
In its ruling Wednesday morning, the Supreme Court said Dominion Trustees had no capacity to have initiated the action and that the writ Dominion Trustees filed at the High Court did not indicate they were the real investors, reports Graphic Online's court reporter, Emmanuel Ebo Hawkson.
Consequently the Supreme Court ordered a cost of Ghc500,000 against Dominion Trustees which was represented by Mr Kwame Pianim, as its investment consultant.
Mr Tsatsu Tsikata represented the NIB as the bank’s counsel.
Background
The suit was commenced against the NIB by Standard Bank Offshore Trust Company, which was later substituted by Dominion Corporate Trustees Limited, on behalf of investors who had purchased promissory notes issued by Eland Ghana Limited and guaranteed by NIB.
Under the terms of the transaction, the investors had to pay a discounted total sum of US$45 million in May 2007, and upon maturity of the promissory notes on January 29, 2009 reap US$60 million, thus earning US$15 million in profit.
During the trial, Mabel Aku Baneseh reported that, the NIB led evidence to show that its Managing Director at the time, Mr Daniel Charles Gyimah, signed the guarantee without any authorisation from the board.
The bank also led evidence to show that the US$45 million was not utilised for the advertised purpose but was rather distributed by Mr Gyimah to Eland Ghana Limited and companies connected to it.
Other beneficiaries were Iroko Securities Limited, London, as well as private individuals, including Mr Gyimah's son, Stephen.
The largest beneficiary was Sphynx Limited, USA, which was given US$24 million. It also emerged that Sphynx Limited was a fully owned subsidiary of Iroko Securities Limited.
In the counterclaim, the bank joined Mr Gyimah, who according to the NIB did not have the mandate to authorise the promissory note. Also joined to the counterclaim was Eland International Ghana Limited.
But the court, in its February 21, 2013 judgement, held a contrary view and declared NIB liable and ordered it to pay the $60 million, with 11 per cent interest, with effect from January 2009 till the day of final payment.
Source: Daily Graphic
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OH AMA GHANA. THERE SHOULD BE A MOVEMENT BY ORDINARY PEOPLE ACROSS BOARD TO STOP THIS CANKER. WE AS A PEOPLE SHOULD ALSO STOP WORSHIPPING AND PRAISING PEOPLE WHO FLASH WEALTH BY HEART. WE SHOULD NOW GO BACK TO THE TIMES THAT SOCIETY IN GENERAL ESCHEWED ILL GOTTEN MONEY. OUR PASTORS SHOULD LEAD THIS CRUSADE TO REDEEM THEMSELVES.
$15 million profit on a $45 million loan in just two years??? Its a scam. Period.
The Supreme Court has erred gravely. Gyimah (that NPP man appointed by ex president Kufuor) acted as agent of the bank and although it is true that the board didn't authorise the deal, 45 million US dollars was duly committed to Eland. Talk about Create, Loot, an Share, Justice Dotse. Just look at the way the money was distributed amongst the entities involved and you will agree with me that NPP's Charles Gyimah was neck-deep practicing Create, Loot, an Share. Folks, it was this same NPP's Charles Gyimah who was so powerful within the Kufour's administration that he could stop the University of Development Studies (UDS) in the north from awarding a honourary degree to Rawlings. Rawlings established the UDS with his own money (money he won from a foundation in Chicago). This case is not over and Ghana will surely be made to vomit the money when the creditors take the issue to court outside Ghana.
These NPP looters are back in power to loot more. Where are those NPP idiooots who have been abusing NDC of create loot and share. This is a classic NPP create by Chareles Gyimah loot NIB and shares to NPP members and they used it for NPP to come back to power. The question is $60 and 51Ghana cedis by Woyome which one is higher?
THANK YOU
Pls this report is too shoddy. What do you expect your readers to make of the report. Please, if you want to serve the public, serve us well and report detailed news to enable readers make an informed decision and appreciate your work
MR. KWAME PIANIM MUST SEEK FURTHER DIRECTIONS FROM THE COURT TO GET THE MONEY BACK FROM THOSE WHO SQUANDER THE MONEY. THE NAMES ARE THERE AND I DONT SEE WHY THE MONEY CANNOT BE RETRIEVED. THIS GUYS ARE THERE SAYING THE WOYOME JUDGEMENT DEBT IS CRATE LOOT AND SHARE. THIS ONE IS A 419 SCAM.