First Atlantic Bank ordered to pay GH¢10.4m for tendering customer bonds into DDEP without consent

The Accra High Court, Commercial Division 6, presided over by Justice Sedina Agbamava, has ordered First Atlantic Bank to pay a total of Eight Million, Four Hundred and Thirty-Nine Thousand, Nine Hundred and Fifty-Nine Ghana Cedis and Sixty-Two Pesewas (GH¢8,439,959.62) to a customer for losses incurred after the bank tendered his bonds for the Government’s Domestic Debt Exchange Programme (DDEP) without his consent.

The ruling, reported by The Law Platform, also awarded exemplary damages of Two Million Ghana Cedis (GH¢2,000,000.00) against the bank, alongside litigation costs of One Hundred Thousand Ghana Cedis (GH¢100,000.00).

The plaintiffs, Vihama Energy Company Ltd and Sebastian Klenam Asem, were represented by Gratia Law Consult, led by Alfred Paapa Darkwah.

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Justice Agbamava, known for her precise handling of commercial claims, dismissed the defence and counterclaims presented by the bank. First Atlantic had argued, through their counsel Augustine Kidisil, that the Bank of Ghana pressured bondholders to participate in the DDEP and that failing to submit Asem’s bonds posed operational risks. The court, however, found no evidence to support these claims.

Her Ladyship held that the bank acted negligently and breached its fiduciary duty to safeguard the customer’s investment. The judgment stated:

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According to court records, the plaintiffs had acquired a loan facility from First Atlantic, secured with Government of Ghana Bonds (GOG-26) and ESLA Bonds (ESLA-31). At no point did they authorise the bank to tender the bonds into the DDEP. Despite this, the bank acted unilaterally, citing alleged defaults and the risk of the bonds losing value—claims the court found baseless.

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Evidence presented showed that while the bonds were wrongfully lodged in the DDEP, the plaintiffs missed coupon payments to which they were entitled. The court’s decision reflects both compensation for the financial loss and a strong disapproval of the bank’s egregious conduct.