NIB BOSS on $60 m CHARGE • For wilfully causing financial loss

Saturday, February 14, 2009 (Lead Story)

THE Managing Director of the National Investment Bank (NIB), Mr Daniel Charles Gyimah, was yesterday arraigned before an Accra circuit court, charged with wilfully causing financial loss of US$60 million to the state.
Mr Gyimah allegedly committed the offence in May, 2007 when he unilaterally used the bank as a guarantor for Eland International (Ghana) Limited, a private company, by signing 30 promissory notes, all valued at US$60 million.
A promissory note is a signed document containing a promise to pay a stated amount of money before a particular date.
Mr Gyimah pleaded not guilty to one count of wilfully causing financial loss to the state and was granted bail in the sum of GH¢500,000 with four sureties, one to be justified.
The accused person, who was accompanied by a host of lawyers, is expected to reappear on February 27, 2009.
Prosecuting, Deputy Superintendent of Police, Mr P. K. Frimpong, told the court that after the accused person had signed the promissory notes, Eland, for its part, contracted US$45 million from Iroko Security Company Limited.
Iroko Security was expected to deduct the US$45 million from the US$60 million on January 1, 2009 but that did not materialise because Eland’s accounts had not been credited with the US$60 million.
The company, therefore, enquired from the NIB to confirm whether or not Eland’s accounts had been credited.
According to the prosecution, Mr Gyimah allegedly ordered the International Banking Section of the NIB to confirm payment, which was done.
The prosecution further stated that most of the major documents covering the transaction between the NIB and Eland could not be traced.
According to Mr Frimpong, the accused person admitted in his statement that he had embarked on the transaction without contacting the board of directors of the bank.
Mr Frimpong prayed the court to remand the accused person on the grounds that investigations were ongoing.
His submission received a sharp disagreement from Mr Ken Brookman-Amissah, the lead counsel for the accused person, who claimed that the bank had not paid the said amount to any company and for that matter his client could not be held liable.
Counsel informed the court that his client had a health problem and had even been denied his medications while he was in custody.
Mr Brookman-Amissah further stated that his client’s service passport had been confiscated by officials of the Bureau of National Investigations (BNI) and, therefore, prayed the court to grant Mr Gyimah bail, since he would co-operate with the police and the court during the trial.
The court took into account the fact that no money had been paid by the bank with regard to the case and accordingly granted the accused person bail.