GHANA COMMERCIAL BANK LTD. HIGH STREET, ACCRA vs. THE COMMISSIONER, CHRAJ OLD PARLIAMENT HOUSE, ACCRA.

The appellant bank terminated the employment of a long-serving manager in 1984 for granting a loan facility of ¢6.7 million without prior head office approval and withheld his entitlements pending recovery of the loan. The employee complained to CHRAJ, contending that he acted in the ordinary course of business, that the loan was secured by assets worth about ¢25 million, and that other managers who granted much larger unauthorized facilities were not similarly sanctioned. CHRAJ investigated and recommended payment of sums due to the complainant. The bank refused to comply, leading CHRAJ to seek enforcement in the High Court. Portion of judgment pointing to this: “the appellant, the Ghana Commercial Bank, employed the complainant for some twenty-one years… In 1984, his appointment was terminated… [for] granting a loan facility of six million and seven hundred thousand Cedis… without prior approval… the appellant withheld the entitlements… According to the complainant… the loan was also secured with assets… worth twenty five million Cedis… other managers had granted similar facilities far in excess… Nothing was done to the managers…”

BROBBEY, J.S.C.: The facts that gave rise to this appeal are as follows; the appellant, the Ghana Commercial Bank, employed the complainant for some twenty-one years. In 1984, his appointment was terminated at a time when he was a manager of the bank. The reason for the termination was that he had contravened the regulations of the bank by granting a loan facility of six million and seven hundred thousand Cedis to a customer of the bank without prior approval from its head office. In addition to terminating the appointment, the appellant withheld the entitlements of the complainant until such time that the customer would pay the loan. According to the complainant, he granted the facility in the normal course of business and after he had satisfied himself of the customer’s assets, the purpose for the loan and the viability of the customer’s business; the loan was also secured with assets of the customer worth twenty -five million Cedis. Dissatisfied with the action taken agains...