NIB thanks stakeholders for showing solidarity during judgement debt
National Investment Bank Limited (NIB) has expressed its appreciation to its legal team, customers, suppliers, business partners and all other service providers for the confidence reposed in it during the hearing of the case between the bank and Dominion Trustees Limited.
Advertisement
A statement issued by the Corporate Affairs Department of the bank said: “Indeed, the bank's very survival depended on the outcome of this case. In the thick of events, you did not desert us. We also wish to thank all our shareholders for the encouragement and support to pursue the case to its logical conclusion.”
“NIB would continue to remain resolute in its decisions and strategy to move the bank forward and wish to state that we are committed to taking specific interventions that will enhance our business, as well as enhance our customers' experience with us,” it said.
The statement pledged that the bank and its staff would continue to act professionally and consistently adhere to the highest ethical and professional standards in all its dealings with its customers and the general public.
Case
The case was instituted against NIB by Standard Bank Offshore Trust Company Limited, and Dominion Corporate Trustees Limited was later substituted on behalf of some investors who had purchased promissory notes issued by Eland International Ghana Limited and purportedly 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, they were to be paid US$60 million, attracting an interest at the rate of 11 per cent per annum on default.
At the time the writ was filed in 2010, the bank had no knowledge nor any documentation in respect of the transaction.
The Managing Director at the time, entered into the transaction to guarantee the promissory notes on the blind side of the Board of Directors of the bank.
The discounted sum of $45m, paid by the said investors, was also disbursed on the blind side of the Board of Directors of the bank.
Process
The Commercial Division of the High Court, in February 2013, gave judgement against NIB in favour of Dominion Corporate Trustees Limited 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 bank appealed against the judgment of the High Court to the Court of Appeal and on October 15, 2015, the Court of Appeal dismissed the appeal and affirmed the decision of the High Court.
The bank was, therefore, to pay almost an amount of $90m, plus interest to the date of final payment.
Dissatisfied with the decision, the bank appealed to the Supreme Court.
Judgement
In its judgment on June 21, 2017, the Supreme Court said Dominion Trustees Limited had no capacity to have initiated the action and that the writ Dominion Corporate Trustees Limited filed at the High Court did not indicate they were the real investors.
The Supreme Court was unanimous in its decision (5:0). and consequently dismissed the writ filed at the High Court in 2010 and declared both the high court and the Court of Appeal judgements void.
It also awarded costs of GH¢500,000 against Dominion Corporate Trustees Limited in favour of NIB.
By the said judgement, the albatross of a judgement debt running into well over $120 million hanging over the neck of the bank has been lifted.