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Ato Essien and 3 others granted GHC675m bail

Ato Essien
  • The Attorney General sued Ato Essien and three others for their roles played in the collapse of Capital bank.
  • The four have been granted bail in the total of GHC675million.
  • Each accused person is also to provide four sureties.

An Accra High Court has granted bail in the total sum of GHC675million to the founder of defunct Capital Bank, Willaim Ato Essien, two other officials of the bank and a businesswoman who are standing trial.

The three officials; Essien, Tettey Nettey and Fitzgerald Odonkor were each granted bail in the sum of GHC200 million. Meanwhile, the businesswoman, Kate Quartey Papafio, was admitted to bail in the sum of Gh₵75million. Each accused person is also to provide four sureties.

The court which was presided over by Justice Eric Kyei -Baffour, also ordered the passports of the accused to be deposited with the court registry.

The four pleaded not guilty to various counts of stealing, abetment to stealing, conspiracy to steal and money laundering. They were admitted to bail following a bail application by their respective lawyers.

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The Attorney General said that the three accused persons stole, conspired to steal or laundered more than GH¢220m belonging to the bank.

Prosecution’s facts

The Attorney -General (A-G), Ms Gloria Akuffo, said Mr Essien was the majority shareholder of Capital bank, Mr Odonkor was the MD of Capital Bank between 2015 and 2017, Tettey Nettey was the Managing Director of MC Management Service, a company owned by Essien while Kate Papafio is a businesswoman and CEO of Reroy Cables Company Limited.

She indicated that between June 2015 and November 2016, the Bank of Ghana gave Gh₵620million as liquidity support to Capital Bank.

She added that the accused persons are the main people who engaged in various illegal acts and dissipated the money.

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Revocation of licence

The BoG revoked the licences of Capital and UT banks on August 14, 2017after they were declared them insolvent.

GCB Bank acquired the two banks in order to protect depositors’ funds and also enable them to stay afloat.

Civil action

The receivers of the collapsed bank, Mr Vish Ashiagbor, and Mr Eric Nipah filed a suit against Essien and 13 shareholders and directors for allegedly engaging in acts that led to the collapse of the bank.

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The suit was filed at the Commercial Division of the Accra High Court.

The plaintiffs said, the defendants “have breached their fiduciary duties under the Companies Code, 1963 (Act 179) and have caused serious financial loss to the bank."

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Email: news@pulselive.co.ke

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