NIB boss deserves commendation for protecting public purse - Group

A group calling itself, the Objective Media Forum, has congratulated the Managing Director of the National Investment Bank (NIB), Dr. John Kweku Asamoah, following the decision by the Supreme Court to throw out a review application seeking to overturn its own decision that quashed a $60 million judgment debt an Accra High Court ordered the NIB to pay to Dominion Corporate Trustees Limited in 2013.

According to the panel of seven justices of the Supreme Court, the review suit filed by Dominion Corporate Trustees failed to meet the conditions of review.

The group in its statement commended the NIB MD and advised other state officers to emulate him.

They believe the diligence displayed by Dr. Asamoah has helped in protecting the public purse. The Forum also cautioned individuals plotting against the NIB boss to desist from doing so and allow him to continue with hios good works.

The statement read: ‘’the Objective Media Forum wishes to congratulate the Managing Director of the National Investment Bank (NIB) Dr John Kweku Asamoah for displaying exceptional and dedicated leadership.’’

It added: ‘’Our congratulatory message has been necessitated following a decision by the Supreme Court to dismiss a review application seeking to overturn its own decision that quashed a $60 million judgment debt an Accra High Court ordered the National Investment Bank (NIB), to pay to Dominion Corporate Trustees Limited in 2013. The decision by the apex court validates the competence and patriotism of the NIB boss and his quest to protect the public purse. We are of the opinion that, some individuals with a parochial interest schemed together to benefit from payments they were not entitled to.”

“But due to the diligence of Dr. Kweku Asamoah, the public purse has been protected. That is what we expect from every other state officer. The interest of the state should be paramount and always protected. We encourage other national officers to emulate the NIB boss to ensure accountability and value for money. We wish to also admonish individuals working against Dr. Kweku Asamoah, to desist from their plots and allow him to work in the interest of the state,’’ it concluded.

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, it was reported that, the NIB led evidence to show that its Managing Director at the time, Mr. Daniel Charles Gyimah, signed the guarantee without any authorization from the board.

The bank also led evidence to show that the US$45 million was not utilized 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.

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 authorize 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 percent interest, with effect from January 2009 until the day of final payment.