Business News of Monday, 25 February 2013

Source: Daily Guide

NIB comforts customers

Management of the National Investment Bank (NIB) has noted that the recent court ruling against the company has not affected its business with customers.

The bank assured customers that their monies are safe and that any information alluding to a collapse of the bank and loss of customers’ monies are totally untrue.

“Management of National Investment Bank Limited wishes to inform the general public, especially its cherished customers, that on Thursday, 21st February, 2013, judgment was given against the Bank at the Commercial Court in a case brought against it by Dominion Corporate Trustees Limited, a UK-based offshore company.”

The Court ruled that NIB was to pay the said foreign entity an approximated amount of US$90 million for the Bank’s failure to pay up for promissory notes worth an amount of US$60 million in 2007.

“In as much as the bank regrets the unfortunate and unjustifiable judgment given by the court, it wishes to assure its numerous customers that the bank will immediately exercise its right to file an appeal and order a stay of execution against the ruling.

The bank is totally convinced that the verdict of the judge did not reflect the facts that were presented before the Court and therefore believes that the Court of Appeal will uphold its appeal and reverse the orders made by the Commercial Court.”

Even though lawyers for the bank are filing an appeal following the ruling, a Senior Lecturer in banking law and practice, Moses Foh-Amoaning, noted that the bank stands to lose a great deal if the order is executed.

“If you consider that the minimum capital requirement for any bank in Ghana is GHC60 million, then to have a debt of 90 million dollars on your books – which is one and half time more than the minimum capital required, then that’s pretty dire for the bank itself and the shareholders alike,” he added.