Otabil, others dragged to court

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Popular pastor, Mensa Otabil, and his church International Central Gospel Church are among 15 shareholders and directors of defunct Capital Bank sued over the collapse of the bank in 2017.

The Plaintiffs, Messrs Vish Ashiagbor and Eric Nana Nipah from PricewaterhouseCoopers, say the bank’s collapse was a “direct result of defendants’ “misgovernance” and “willful” breaches of banking regulations.

The writ of summons named the ‘sins’ of each of the defendants and confirmed a financial autopsy report that said the failed bank’s founder, William Ato Essien, used depositors’ funds as his ‘personal piggy bank.’

In one such ‘personal piggy bank’ transactions, Ato Essien was said to have requested for ¢130m loan to be given to an investment company he is related to – Capital and More Ltd.

But the senior management of the bank declined the disbursement which was public funds from the Bank of Ghana injected to save the troubled bank in 2015.

Pastor Mensa Otabil, as Board chairman, reportedly provided a personal guarantee that the loan to the founding CEO’s other company would be repaid.

The statement of claim said the money given out in 2015 has not been paid after three years.

The writ faulted the pastor for guaranteeing the disbursement explaining, he was “conscious at all material times” that it was in breach of banking regulations as well as against the “expressed opposition” of the senior managers.

That ¢130m was not the only loan William Ato Essien took from his bank. There was another ¢29.9m he caused to be granted companies he owned or was related to.

He later came for another ¢78.9m in loans.

The failed CEO, who is under criminal investigations, has been asked in the writ to cough up more than ¢580m in shareholder loans he took as well as loans granted to companies he owned or is related to.

In another episode of severe and acute culture of mismanagement at the defunct bank, the directors and shareholders kept ¢482m in “non-existent investments” on their books.

The central bank would later grant their request for this imaginary investment to be converted into actual loans to be paid by the shareholders.

To date, a shareholder – Otabil and Associates – founded by the pastor and management expert, has been unable to pay ¢51.6m which is their share of the loan converted from the imaginary investments.

Otabil’s church – the International Central Gospel Church – which was a shareholder in the bank, has also failed to pay ¢51.6m which is also its share of the ¢482m loan.

A third defendant, Oheneba Osei-Akoto, took a ¢2.42m loan in December 2016 using his residential property at Regimanuel Gray Estates at East Legon as collateral.

The defendant and shareholder has failed to pay back the money.

 

ABOUT: Ellsamwise King

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A Civil/Structural Engineer & Freelance Blogger, Journalist, Social Media Mogul, Digital Marketer, Entrepreneur, and Philanthropist. CEO of Skyline Consortium & 9189 Media Consult and Co-Founder of Team Sarkodie. An alumnus of Prempeh College where he read General Science. He holds a first degree in Bachelor of Science from the Kwame Nkrumah University of Science and Technology. His mentors are Alvar Alto, Rupert Murdoch, Piers Mogan, Mensa Otabil, Bernard ElBernard Nelson-Eshun. Blogs for; http://www.233times.com | www.paemuka.com | http://www.playmusicgh.com | http://www.muzikiq.com | http://www.brandsaid.biz . Social Media Manager for Eon3 Group | BrandsAid | Kings Crown Media | Carabao Africa Ghana & Africa | Calvary Temple - ICGC | Team Sarkodie | Muzik IQ | Kwaw Kese Please inquire more via Email: [email protected] | [email protected] Instagram & Twitter: @wise_tskd Facebook: Ell Samwise LinkedIn: EllSamwise King Dogbe

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