The Ecobank Transnational Incorporated (ETI) has rejected the order of a Togolese labour court that awarded its dismissed former chief executive officer, Thierry Tanoh, $11.6 million as alleged damages for supposed ‘wrongful dismissal.’ Therefore, the pan-African bank, which described the ruling as “disappointing,” said it would file an appeal.
“ETI does not accept the legitimacy of the Togolese court’s ruling because the court does not have legal jurisdiction over Tanoh’s employment contract. Tanoh signed this contract before assumption of his post as Ecobank Group CEO in July 2012 in the full knowledge that it was governed by English law.
“The contract expressly provides that all disputes shall be settled by international arbitration in London by an arbitrator appointed by the President of the International Chamber of Commerce in Paris. The contract grants exclusive jurisdiction to the English courts in relevant matters. Tanoh, an Ivorian national with permanent residence in the United States during his tenure as ETI Group CEO, rejected these express provisions of his contract, preferring instead to pursue litigation in a Togolese court for reasons best known to him.
“This is the second time in as many months that Tanoh has sought to extract substantial sums of money from Ecobank on claims which he knows would not stand up in most courts of law. Last month, an Ivorian commercial court, before which he filed a civil suit against ETI, Public Investment Corporation (PIC) and Dr. Daniel Matjila for ‘defamation,’ ruled in his favour in the amount of $15 million. This decision is equally being appealed,” the bank argued in a statement on Wednesday.
Furthermore, it pointed out that jurisdiction technicalities aside, and on substantive matters alone, the bank stands firm on the decision to relieve Tanoh of his responsibilities, maintaining that it rejects the sum of money the for chief executive is demanding in local courts in Togo and Cote d’Ivoire.
“His removal from office was fully justifiable. Many of ETI’s founders, shareholders, directors and a number of Ecobank’s regulatory authorities were resolute in their calls for Tanoh to step down. This was after due consideration of an overwhelming amount of compelling material, which showed that his dismissal was clearly warranted.
“ETI has lodged a criminal complaint against Tanoh for taking away all official files that he handled as Group CEO of Ecobank, and for deleting all electronic files from the official computers that he used.
“These unbelievable decisions by the local courts in Cote d’Ivoire and Togo amount to self-inflicting damage, for they send unambiguously negative signals to the business community. They are a deterrent to local and potential foreign direct investment in both countries. They raise serious questions for any business entity about how independent or objective a ruling they could obtain in potential litigation. The ETI Board will hold a special meeting next week to consider its options in the wake of these decisions,” it added.
Thisday
