Standard Bank chases gov't for $60m

Credible reports gathered by The Chronicle indicate that officials of the Standard Bank Offshore Trust Company Jersey Limited, the current holders of the US$60m promissory notes issued by Eland International Ghana Limited, and guaranteed by the National Investment Bank (NIB) are expected in the country today to demand their money. The officials have vowed to meet the government to argue out their case for the payment of their money.

According to our information, the Standard Bank, having read the official report by the NIB, which chronicled all the activities leading to the transaction, and concluded that there were no documents to prove the deal, are mad over the development, hence the move to have a discussion with officials of the state, even though they have threatened legal action.

The Chronicle can report that the NIB, in its official report, in respect of the US$60million promissory notes to the Governor of Bank of Ghana, copied to the Minister of Finance and Economic Planning, hinted that the Standard Bank might have been defrauded in the transaction.

The NIB management position, which was signed by Mr. Micheal Amafu-Dey, head of the legal department of the bank, and K. Owusu-Tweneboa, the deputy Managing Director, blamed Iroko Security companies for not doing due diligence, as far as the matter was concerned.

The report, dated March 3rd 2009, state “After considering all the facts, the NIB has come to the firm conclusion that the entire transaction was a fraudulent enterprise that was undertaken.

It continued, “This fraud should have been easily detected by Iroko Company and the investors who purchased the promissory notes,” adding “In view of the NIB, Iroko as a company, unlike EIGL and EITL may not have sanctioned the fraud.”

The NIB, now being superintended by Dr. P.A Kuranchie, stated further that “the NIB believes that certain individuals within Iroko were part of the entire criminal enterprise.

In this circumstance, NIB again wishes to state with all emphasis that the Bank does not consider itself culpable or liable for any losses that any investor may incur under the promissory notes.”

Meanwhile the lawyers of Standard Bank, who are due in the country today, have written to the NIB management, demanding for payment of US$60million, in the aggregate principal amount of promissory notes issued by the EIGL, and guaranteed by the NIB.