Citi Business News has gathered that the Danish Embassy in Ghana has written to the ARB Apex Bank through its lawyers Kimathi and Partners demanding some 430,000 Ghana Cedis to be refunded and paid into the DANIDA Training Seed Fund Bank Account with Apex bank.
[contextly_sidebar id=”coAg1driTS6zZkCTky5f7Rl8TpIYDbH8″]This comes after the ARB Apex Bank according to the Denmark Embassy failed, neglected and refused to carry out its obligations under the Training Seed Fund Charter.
The aim of the DANIDA Training Seed Fund is to subsidize the cost of training of Rural and Community Banks (RCB) classified as “fair”, “marginal” and “unsatisfactory” by Apex Bank in performance.
According to a letter from Kimathi and Partners and signed by Lawyer Kimathi Kuenyehia ‘our client the Embassy of Denmark has informed us that on the 1st of November, 2013 it entered into an agreement (“Training Seed Fund Charter”) with ARB Apex Bank Limited (“Apex Bank”) to establish a training seed fund known as the DANIDA Rural and Community Banks Training Seed Fund (“DANIDA Training Seed Fund”).
The letter continues to state that “our clients have informed us that it has provided adequate funds to establish the DANIDA training seed fund in accordance with the Training Seed Fund charter and has carried out all its obligations but Apex Bank has failed, neglected and/or refused to carry out its obligations.
‘Specifically, Apex bank has not invested the DANIDA Training Seed Fund that is in excess of the budgeted subsidy for the year 2014 in government securities in accordance to the training Seed Fund Charter’.
Our clients informs us that the Training Seed Fund has lost an amount of 430,000 Ghana Cedis because of Apex Bank’s failure, negligence and/or refusal to invest the excess funds for 2014 in the DANIDA Training Seed fund in government securities.
Naturally our clients the Embassy of Denmark is disappointed that a reputable institution like Apex Bank will refuse to perform its obligations under the Training Seed Fund Charter.’ The letter stated.
It further indicated that ‘please be advised that your refusal to invest the funds in government securities is a clear breach of the Training Seed Fund Charter you signed with our clients and your conduct is likely to mar a mutually beneficial business relationship and unquestionably result in civil liabilities for the Apex Bank’.
The letter continued that ‘now that we have brought this to your attention, you have the legal responsibility to take prompt action and invest the funds in the DANIDA Training Seed Fund Bank Account before Friday, February 27, 2015.
Our client’s the Danmark Embassy has further instructed that Apex Bank pay into DANIDA Training Seed Fund Bank Account with Apex bank an amount of 430,000 being the loss resulting from Apex bank’s failure, negligence and/or refusal to invest the excess funds for the year 2014 in government securities.
Our clients would like to resolve this matter amicably and preserve the business relationship but in the absence of a favorable timely response, we are prepared to take all steps necessary to vigorously enforce our client’s rights to the fullest extent of the law’. The letter concluded.
By: Norvan Acquah-Hayford/citifmonline.com/Ghana