The receivers of the defunct Capital Bank, Vish Ahsiagbor and Eric Nana Nipah, working with PricewaterhouseCoopers (PwC) have sued sixteen former directors of the bank.
The sixteen persons include former board chair, Pastor Mensah Otabil, founder William Ato Essien and the Chief Executive Rev. FitzGerald Odonkor.
In the suit, the receivers stated that the collapse of Capital Bank was due to the direct result of the ‘misgovernance’ by the sixteen defendants.
It added that the defendants wilfully breached the banking regulations of the bank of Ghana and approved funds without proper procedure.
The suit outlined the role of each of the defendants and confirmed a financial autopsy report that said its founder, William Ato Essien used depositors’ funds as his ‘personal piggy bank’.
According to the writ, Pastor Otabil at a board meeting assured management that he will see to it that an amount of 130 million cedis approved for the founder, William Ato Essien is returned by March 2016 but till now the money has not being paid back
“Even though the senior management present at the said meeting stated categorically that if the board and shareholders wanted the amount of GHS130 million transferred they would only note it but would not approve it, the 2nd defendant (Mensah Otabil) assured the management that he would personally ensure that the funds were paid back by March 31, 2016 as promised by the 1st Defendant (William Ato Essien). Till date, the amount of GHS130 million remains outstanding and unpaid,” the writ narrated.
According to the writ, the GHS130 million was rather used to set up Sovereign Bank, another bank in which Mr. Essien had a vested and material interest.
In addition, the writ stated that the defendants approved a further amount of 27,500,000 was to Mr. Ato Essien as ‘protocol payments’ or business promotion’ for the receipts of the liquidity support from then Bank of Ghana.
Background
The Bank of Ghana in 2017 revoked the license of Capital Bank after the bank was said to facing liquidity challenges and was insolvent.
The receivers of the defunct Capital Bank, Vish Ahsiagbor and Eric Nana Nipah, working with PricewaterhouseCoopers (PwC) have sued sixteen former directors of the bank.
The sixteen persons include former board chair, Pastor Mensah Otabil, founder William Ato Essien and the Chief Executive Rev. FitzGerald Odonkor.
In the suit, the receivers stated that the collapse of Capital Bank was due to the direct result of the ‘misgovernance’ by the sixteen defendants.
It added that the defendants wilfully breached the banking regulations of the bank of Ghana and approved funds without proper procedure.
The suit outlined the role of each of the defendants and confirmed a financial autopsy report that said its founder, William Ato Essien used depositors’ funds as his ‘personal piggy bank’.
According to the writ, Pastor Otabil at a board meeting assured management that he will see to it that an amount of 130 million cedis approved for the founder, William Ato Essien is returned by March 2016 but till now the money has not being paid back
“Even though the senior management present at the said meeting stated categorically that if the board and shareholders wanted the amount of GHS130 million transferred they would only note it but would not approve it, the 2nd defendant (Mensah Otabil) assured the management that he would personally ensure that the funds were paid back by March 31, 2016 as promised by the 1st Defendant (William Ato Essien). Till date, the amount of GHS130 million remains outstanding and unpaid,” the writ narrated.
According to the writ, the GHS130 million was rather used to set up Sovereign Bank, another bank in which Mr. Essien had a vested and material interest.
In addition, the writ stated that the defendants approved a further amount of 27,500,000 was to Mr. Ato Essien as ‘protocol payments’ or business promotion’ for the receipts of the liquidity support from then Bank of Ghana.
Background
The Bank of Ghana in 2017 revoked the license of Capital Bank after the bank was said to facing liquidity challenges and was insolvent.
Citinewsroom