Notably, the name of Board Chairman Dr. Mensa Otabil, who also heads the International Central Gospel Church (ICGC), has come under scrutiny.
ADVERTISEMENT
Mensa Otabil and ICGC remain in court over Capital Bank collapse
Following the recent sentencing of William Ato Essien, the founder of the defunct Capital Bank, by an Accra High Court, concerns have arisen about the absence of legal action against other key decision-makers in the bank.
Founder of International Central Gospel Church (ICGC), Dr Pastor Mensah Otabil
Recommended articles
While there are no criminal charges against Dr. Otabil, it is crucial to note that since 2019, he and 14 others have been subject to a civil action initiated by the Receiver of the defunct bank, according to 3news.com.
The 14 individuals include William Ato Essien, Oheneba Osei Akoto, Stephen Enchill, Kingsley Atta Ghansah, Otabil and Associates, International Central Gospel Church (ICGC), Kwadwo Ayisi Ahwireng, Isaac Osah Thompson-Mensah, and John Kofi Mensah, who are all shareholders of the defunct company, as well as Fitzgerald Odonkor, Amadu Montia, Kofi Kwakwa, and Francis Adu-Mante, who were directors of the company.
The Receiver's aim is to recover over 800 million cedis from these individuals, including outstanding shareholders' loans, facilities granted to Ato Essien and related companies, and funds owed by ICGC.
ADVERTISEMENT
The allegations revolve around fraud, with court documents revealing that the directors of the defunct bank approved loans and placed funds without proper collateral, violating internal policies, banking regulations, and Ghanaian Company law. The directors are accused of overseeing the disbursement of liquidity support from the Bank of Ghana in breach of regulations, with Dr. Mensah Otabil allegedly assuring repayment by March 31, 2016, a commitment that remains unfulfilled.
For instance, the High Court is being asked to recover 468 million cedis as a shareholders' loan and 108 million cedis in facilities granted to Ato Essien and his related companies that remain outstanding. The court has also been asked to allow the recovery of 51 million cedis from the ICGC.
Legal proceedings have faced obstacles, primarily due to legal challenges by William Ato Essien, who successfully secured the right to challenge the revocation of the bank's license by the Bank of Ghana. The High Court and Court of Appeal have been engaged in debates over the case's progression. The Court of Appeal ruled in favor of Mr. Essien, allowing him to contest the Bank of Ghana's actions.
The High Court is set to hear legal arguments on November 21, focusing on whether the Receivers have the capacity to sustain the legal action, given that the assets of the bank now belong to GCB Bank. The case continues to be a focal point in the aftermath of the Capital Bank collapse.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
Glovo and 7 other businesses that have exited the Ghanaian market
Yango implements new safety features to protect riders and partner drivers in Ghana
Ghanaians call for business-friendly environment, improved economy amid Glovo exit
Glovo to stop operating in Ghana effective May 10, cites profitability concerns
MoMo transactions reached GH¢1.9 trillion in 2023 due to Interoperability — Bawumia
7 factors to consider before investing in a money market fund
China dethrones USA as the most influential global power in Africa: Report
ByteDance prefers to shut down TikTok in US instead of selling it to American buyer
