COURT CLARIFIES MODE OF INTEREST CALCULATION IN NDK v GLICO GENERAL RULING
On the 21st February 2018, the High Court delivered its ruling in respect of GLICO GENERAL on the payment of interest on the NDK Financial Services v Kosefeld v GLICO GENERAL case; details of which are in the public domain as it remains one of the classic cases on credit guarantees in Ghana.
The court ruled that interest on principal payments should be paid on a simple interest basis contrary to NDK Financial Services belief that payments be made with interest at a compounded rate.
Per the law (Court of Appeal Rules C.I.19), GLICO GENERAL has twenty-one (21) days to act on the ruling, whether to pay up based on the court’s ruling or appeal further. Lawyers representing GLICO GENERAL are in the process of appealing based on the technicalities of the case.
Without an amended entry of judgement following the ruling, representatives of NDK Financial Services accompanied by court bailiffs, policemen and media men in a mischievous and bizarre attempt, invaded the GLICO House premises around 12midday yesterday 8th March 2018, without notice or warning nor due process, to see the leadership of the Company with a writ of FiFa to seize all parked vehicles on GLICO’s yard as well as office equipment.
In this irregular process, they drove off with five (5) vehicles, a photocopier/printer and three (3) personal computers belonging to GLICO GENERAL and other private individuals.
GLICO GENERAL has since reported the incidence to the Police Criminal Investigation Department (CID) for investigations, as they follow legal procedures to correct the illegality.
Speaking to the media on this rather mischievous action by NDK, the Managing Director of GLICO GENERAL, Mr. Andrew Achampong-Kyei indicated that, GLICO GENERAL is a formidable company and pays legitimate claims promptly and would continue to cushion its clients for life. However, where claims border on illegalities and fraud, the rule of law must always be applied.
It important to state that GLICO GENERAL has been rated “B-” for credit worthiness by Standard &Poors (S&P) Rating Agency and to date, is the only non-life insurance company to be rated in Ghana by S&P. It is also rated “A-” by the Global Credit Rating Agency of South Africa for claim payment abilities, an attribute GLICO GENERAL lives by with the tagline “we cushion you for life.”
GLICO GENERAL assures its clients and stakeholders that its promise to cushion clients for life is still resolute as it has the financial muscles to pay all legitimate claims promptly.
Instructively, GLICO GENERAL is a member of GLICO GROUP, a group of companies specialising in providing financial solutions to Ghanaians for the past thirty years and counting.
Nana Efua Rockson
GROUP Head, corporate Affairs & Marketing
GLICO Group Ltd