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Receivers sue to recover GH₵837m from Otabil, 13 others

Pastor Mensa Otabil, General Overseer, International Central Gospel Church (ICGC)

The General Overseer of the International Central Gospel Church (ICGC), Pastor Mensa Otabil, the ICGC, and 13 shareholders and directors of the defunct Capital Bank Ghana Limited have been sued for allegedly engaging in acts that led to the collapse of the bank.

Pastor Otabil was the Board Chairman of the defunct bank, while the ICGC was named as a shareholder of the bank in the suit.

The suit was filed at the Commercial Division of the Accra High Court by the receivers of the defunct bank, Mr Vish Ashiagbor and Mr Eric Nipah.

The plaintiffs are seeking to use the legal action to recover over GH₵837 million being what they said were loans granted to the shareholders which remains unpaid.

Defendants

The other shareholders and directors joined to the suit as defendants include Mr William Ato Essien, former Chief Executive Officer of the bank, Oheneba Osei-Akoto, Stephen Enchill, Kingsley Atta Ghansah, Otabil & Associates, Kwadwo Ayisi-Ahwireng, Isaac Osah Thompson-Mensah and John Kofi Mensah.

The rest are Edwin Obeng Donkor, Fitzgerald Odonkor, Amadu Montia, Kofi Kwakwa and Francis Adu Mante.

The suit outlined the role of each defendant and confirmed a financial autopsy report that said the failed bank’s founder William Ato Essien used depositors funds as his ‘personal piggy bank’.

Background

Capital Bank, along with another indigenous bank, UT Bank, collapsed in August last year due to liquidity challenges and all their assets taken over by state-owned GCB Bank.

Capital Bank received GHS 610 million from the Bank of Ghana to cure its liquidity struggles, funds allegedly mismanaged, leading to its collapse.

Source: Graphic.com.gh

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