Court orders NIB to pay $90 million to UK firm

A Commercial Court has ordered the National Investment Bank (NIB) to pay a judgement debt of over $90 million to Dominion Corporate Trustees Ltd, formerly Standard Trust Plc, offshore company in UK.

The ruling follows promissory notes worth $60 million issued by the then manager Daniel Charles Gyima as a collateral management agreement in 2007.

The former NIB boss came under heavy criticism for issuing the promissory notes when the matter first came up but he was adjudged to have acted with due authority as MD.

Gyima entered into a transaction with Eland International Limited in 2007 and used the Bank as guarantee. The notes were said to have been discounted with Iroko Security Company Limited for $45 million which will mature in January 2009.

The Bank has since failed to honour the promissory notes and the court has ordered that it must pay with an 11 percent interest from 30th January 2009 till date of final payment.

State Attorney Dominic Ayine told Joy News the judge erred in his ruling and they will appeal.

He found it “mind boggling” that the court ruled in favour of the plaintiff, especially when the plaintiff is known to have a history of transaction with the NIB.

He said the transaction did not have the blessing of the Board of the NIB and cannot therefore be deemed to be proper.

They will appeal the case, he emphasised.