2021
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The Supreme Court of Ghana, per DORDZIE (MRS.) JSC, reviewed the wrongful dismissal of David Agbeli, acting Head of Merchant Bank Ghana’s Credit Risk Management Department. Agbeli was accused of approving credits beyond his limit, but he argued he operated under the Group Credit Policy’s exception clause (2.3), reported and obtained ratification from his next higher authority, the Managing Director, and the Credit Committee, supported by minutes and reports (Exhibits B, K, M). The Court found that the lower courts overlooked key documentary evidence and misapplied findings, noting that the VRA facility was syndicated and Bank of Ghana reports showed longstanding liquidity management weaknesses not attributable to Agbeli. The Court held the dismissal wrongful, affirmed the Board’s authority to delegate signing in the absence of the MD, set aside the Court of Appeal judgment, and awarded fifteen months’ salaries and allowances plus retirement benefits and three months’ salary as general damages.
DORDZIE (MRS.) JSC:-
Facts:
Until 6th February 2008, the Appellant herein was in the employment of Merchant Bank Ghana Ltd, the respondent, (the bank) as the acting head of the Credit Risk Management Department. He was employed in August 2005 and worked as next in command in the said department until his elevation to the acting position of the head of the said department.
In or about October 2007, the respondent found cause to complain about the manner the appellant was performing his role as head of the Credit Risk Management Department of the Bank. Therefore on 6/10/2007 it wrote to the appellant, (a query) to explain his actions which was found to have breached the rules of the bank’s credit policy; details of the breach were particularized in the said letter, (exhibit C). On 9/10/2007, the bank wrote the appellant to proceed on leave while it investigated matters.
The appellant wrote a response to the query dated 13/10/2007. The bank found appellant’s explanations unsatisfactory, it therefore wrote, summarily dismissing him on 6/02/2008. Following the bank’s required proceedings in such matters, the appellant petitioned the Board of Directors of the bank. He did not find favour with the board and the petition was turned down.
The appellant turned to the court for remedy and on 24/07/2008, he instituted an action against the bank in the High Court Accra.
The averments in the amended statement of claim give the facts upon which the appellant instituted this action and they are reproduced as follows:
1. Plaintiff was until the 6th of February 2008, an employee of the Defendant Bank occupying the position of acting Head, Credit Risk Management Department.
2. Defendant is a commercial bank registered in Ghana and doing business in the country
3. Plaintiff was employed by the Defendant bank sometime on 15th August 2005 and worked diligently and efficiently till 6th February 2008, when the Defendant wrote a letter dismissing Plaintiff from its employment.
4. Prior to the letter of dismissal dated 6th February, 2008, the Defendant wrote a letter dated 6th December 2007, to the Plaintiff leveling charges of non-compliance of the Plaintiff with approval limits of the Defendant’s bank.
5. Plaintiff will show that he provided explanation to show that the facilities which were granted to the named customers were all done by the Plaintiff after proper and reasoned memos have been prepared by the Corporate Department of the Bank with approval of the M