Accra High Court Orders First Atlantic Bank to Compensate Vihama Energy GH¢10 Million for Unauthorized Bond Tendering

The Accra High Court has ordered First Atlantic Bank to pay over GH¢10 million to Vihama Energy Company Ltd for unlawfully tendering the company's bonds in the Domestic Debt Exchange Programme (DDEP) without proper authorization. The court's ruling, delivered by Justice Sedina Agbamava, includes a compensation of GH¢28.4 million for losses incurred, GH¢2 million in exemplary damages, and GH¢100,000 to cover litigation costs. The court found that First Atlantic Bank acted negligently, breaching its fiduciary duty to the client. The bank's defense, which claimed regulatory coercion, was dismissed, as the court affirmed that Vihama Energy had not defaulted on its obligations and that the bonds retained their value during the period of wrongful tendering. This ruling underscores the importance of banks adhering to fiduciary responsibilities and obtaining client consent in financial transactions.