CAL Bank And Its MD Sued

Mr Samir Said El-Masri, a customer of CAL Bank, has sued the bank and its MD for unlawful arrest and false imprisonment following an incident on June 12 in the office of the bank’s managing director (MD), Mr Frank Adu Jnr.

Narrating his ordeal, Mr El-Masri described the whole affair as “bizarre and seriously in contravention of what an institution like CAL Bank stands for”.

“I am amazed that in his attempt to prove to me that he has the power to deal with me any way he liked, Mr Frank Adu Jnr, in the presence of one of his staff described himself as a gangster.

That was shocking. It was at that point that I realised that since I am not used to dealing with gangsters, there was no point arguing with him further”, Mr El-Masri said following his legal action at the High Court.

According to him, it was just strange that a bank that he had had several years’ business dealings with could turn round one day and treat him like a criminal.

The facts of the case, as narrated by him are as follows: Mr El-Masri, a businessman has been a customer of the bank for well over 10 years and has had various financial dealings with the bank.

It has been the practice between the parties that when exports are to be done (which is the business he is engaged in through his registered entity Shadco Ventures Limited) letters of credit are opened and upon this pre-financing is done for the shipment of his goods to be effected.

“In actual fact, the bank charges commission and various fees on the transaction and until full payment for the advance is made, the bank charges interest as well as other exchange charges since the deal is contracted originally in foreign currency, but payment to me by the bank is always made in cedis”, he said.

Thus, the bank has to date benefited from his company’s export business turnover of over US$10 million, huge sums of commissions, exchange gains and interests.

According to Mr El-Masri, it has been the practice that even where letters of credit has expired, the bank continues to pre-finance and received its commission and fees as usual.

The businessman contends that this has been the practice for well over the entire period that he has been a customer of the bank and started serious financial dealings with them, owing to his export business.

He said between May 18 and 22, the bank pre-financed his export to the tune of US$500,000 after deducting the necessary commission and charges.

But, when the manager of the Takoradi branch, where he has his account held and has been doing his business, resigned, the managing director raised hue and cry over the transaction, more so when the other bank officials appeared not privy to documentation covering the transaction.

And since the plaintiff had then also travelled to Lebanon on business, it all looked shady to the MD.

Mr El-Masri arrived in the country on June 11 and had a meeting arranged for him with the MD on June 12 to establish what the problem was, since to his knowledge all was well.

But to his utter surprise, a business meeting turned extremely personal, with the MD of the bank, Mr Adu Jnr, launching into a tirade of insults, calling him a crook, and accusing him of stealing the US$500,000 that he had legitimately contracted from the bank and paid all fees due on it.

He added that it was during the process of him trying to explain his side of the deal that the MD ordered his general manager out to get a police officer, who was then waiting outside the MD’s office, to arrest him.

He was then sent to the CID headquarters for further questioning. In fact, Mr El-Masri, according to him, had to wait from 10am to 7.00pm at the police headquarters.

Worryingly, following the incident, Mr El-Masri claims that all cheques issued by him have been dishonoured by the bank even though he has a credit balance.

“I don’t know whether this is what banking has turned out to be in Ghana now. I have evidence of a cheque that I issued which the payee was initially paid at the counter but while he was at the car park about to leave, a security officer ushered him back in to the banking hall and the money was forcefully seized from him and the cheque given back to him.

This is a serious breach of relationship between the bank and me as a customer. I am talking about my personal account and not my company’s bank account”, he said.

“I must say here that I have a lot of respect for the bank from the way I have dealt with some of the workers in the past but the behaviour of the overall bank boss leaves much to be desired. This is not expected of a bank that is indeed listed on a stock exchange”, El-Masri said.

The suit, which was filed at the High Court has Samir Said El-Masri and Shadco Ventures Limited as the plaintiffs, with Frank Adu Jnr and CAL Bank Limited as defendants. CAL Bank and Frank Adu Jnr are expected to respond to the allegations.