The founder of the defunct Capital Bank, William Ato Essien, is reportedly nearing default on his first payment of GH₵20million to the state by 28th April 2023 as part of his repayment agreement following the bank’s collapse.
According to sources, Ato Essien is on the brink of failing to meet the terms of his agreement and is at risk of defaulting on the first payment, which is due April 28.
However, the situation has been complicated by the alleged involvement of a Deputy Attorney General, Alfred Tuah-Yeboah, who is said to be shielding Ato Essien from prosecution.
The matter has caused outrage among Ghanaians, with many calling for a thorough investigation into the allegations of corruption and abuse of power.
Payment
Ato Essien is required to pay an amount of GH₵90 million as restitution and reparation to the state within one year. This would see him pay an initial ₵30 million (which has been paid) and refund the remaining 60 million in three instalments. The first is due latest by April 28, 2023 while the second is on August 31, 2023.
Justice Eric Kyei Baffour, the trial judge presiding over the case of the Republic versus William Ato Essien and two others (popularly known as the Capital Bank case) had warned that if there was any default in the payment or it even fell short of the required amount, Mr. Essien was to be arrested and produced in court for custodial sentence to be imposed.
But Mr. Essien in fresh court documents, however pointed out that current economic challenges make it imperative for him to be given the opportunity to explain a default before any such move is undertaken.
Background
William Ato Essien, Rev. Fitzgerald Odonkor, and Tetteh Nettey, a former managing director of MC Management Service, owned by Mr. Essien, were accused of participating in a 23-count conspiracy to steal GH₵620 million in liquidity support that the Bank of Ghana (BoG) provided to the bank to help it pay off its maturing debt.
The accused opened a number of bank accounts with Capital Bank, according to the prosecution, through which the GH₵620 million BoG liquidity support was transferred, while others were transported in jute bags to Ato Essien.
Meanwhile, the two individuals standing trial together with the founder of Capital Bank, William Ato Essien, have been acquitted and discharged.
