Court Condemns First Atlantic Bank’s ‘Egregious Conduct,’ Awards GH¢100,000 Legal Costs Against Bank

First Atlantic Bank has suffered a major legal setback after the Accra High Court condemned its actions as “egregious” and ordered it to pay GH¢100,000 in litigation costs, alongside millions of cedis in damages, for unlawfully interfering with a customer’s investment.

The ruling stems from the bank’s decision to tender Government of Ghana Bonds and ESLA Bonds belonging to Vihama Energy Company Ltd and Sebastian Asem into the Domestic Debt Exchange Programme without their approval.

The court found that the plaintiffs had fully met their repayment obligations under the loan facility secured by the bonds and had never authorised their inclusion in the DDEP. Despite this, the bank proceeded to tender the bonds, claiming the plaintiffs had defaulted and that the bonds were at risk—claims the court found to be entirely unsupported by evidence.

Justice Sedina Agbamava dismissed the bank’s over 100-paragraph defence, describing its conduct as negligent and a clear violation of fiduciary trust. The court further noted that the plaintiffs lost legitimate coupon payments while the bonds were wrongfully lodged under the DDEP.

As part of the judgment, the court ordered First Atlantic Bank to pay over GH¢8.43 million to the second plaintiff, GH¢2 million in exemplary damages, and GH¢100,000 as litigation cost, sending what the court described as a strong message of disapproval of the bank’s actions.

The ruling has raised serious concerns about customer asset protection and fiduciary responsibility within Ghana’s banking sector.