Accra March 14, - The Supreme
Court has thrown out a review application seeking to overturn its earlier
decision that quashed a $60- million judgment debt a High Court in Accra
ordered the National Investment Bank (NIB) to pay to Dominion Corporate
Trustees Limited five years ago.
According to the Supreme Court
Dominion Corporate Trustees Limited (DCTL) review application had no merit and
it did not meet the condition of a review as stated in the court’s rules.
The apex court of the land
further noted that DCTL did not make sufficient case to entertain the review
and there was no exceptional circumstance to accommodate the review.
The seven member panel presided over
by Justice Sophia A. Akuffo did not award any cost against DCTL.
After the court’s ruling, Mr John
Kweku Asamoah, Managing Director, NIB told journalists that he was elated that
the Supreme Court had affirmed its earlier decision adding that “the nine year
legal battle has ended today.’’
Mr Asamoah appealed to the bank’s
stakeholders to have faith in them as they continue to do business adding the
bank was going to move to its next phase of growth in the coming years.
The High Court 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 $20,000.00, 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.
The Supreme Court on June 21,
last year, overturned a $60 million judgment debt entered against NIB by the
High Court in February 2013.
In its ruling the five member
panel of the Supreme Court presided over by Justice Sophia Akuffo in a
unanimous decision ruled that the appeal succeeds and that the writ of summons
void.
The apex court said a writ which
is void, cannot be perfected by a waiver or an amendment, saying in this
instance the title of the writ did not disclose certain investors in the
promissory notes.
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 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 and 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.
GNA
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