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Ghana: Capital Bank Collapse – AG Rejects Ato Essien’s Proposal to Refund Gh¢ 27.5 Million

Trial of William Ato Essien, who is charged with three others for allegedly playing various roles leading to the collapse of Capital Bank, is set to continue on July 9, in spite of ongoing refund negotiations between counsel for the accused and the prosecution.

Three weeks ago, lawyers for Mr Essien who is the former Chief Executive Officer of Capital Bank intimated to the Commercial Division ‘7’ of the Accra High Court that their client was willing and ready to return about GH¢27.5 million to the state.

Mr Ato Essien begun negotiations with the Attorney General pursuant to section 35 of the Courts Act, which allows for an offer of compensation or restitution in respect of some of the charges brought against the accused.

At proceedings yesterday, Principal State Attorney, Mrs Marina Opare Appiah told the court that negotiations were still ongoing and that the prosecution finds the first proposal from the accused totally unacceptable.

She said subject to the convenience of the court, trial of the case should proceed even, if both parties were able to reach a consensus by the next adjourned date.

Mr Essien’s lawyers had revealed that his client had already paid close to GH₵ 1.4 million and also given out some 19 newly cleared cars from the port to the state.

Mr Essien and three former executives of the defunct bank, Fitzgerald Odonkor, Kate Quartey-Papafio and Tetteh Nettey are facing 26 charges levelled against them by the state.

The prosecution, then led by the Attorney General (AG), Ms Gloria Afua Akuffo, said the accused engaged in various illegal acts that led to the dissipation of the GH¢620 million liquidity support given to Capital Bank by the Bank of Ghana between June 2015 and November 2016.

It is the case of the prosecution that Essien was aided by Odonkor to transfer the liquidity support to certain companies either controlled by him or in which he had an interest.

According to the AG, GH¢ 130 million of the liquidity support was transferred to MC Management Services, which was later presented to the BoG as the initial capital to set up Sovereign Bank, another bank in which Essien had an interest.

She further alleged that between June and October 2015, Essien, aided by Odonkor, appropriated GH¢27.5 million of the liquidity support by carrying it in jute bags, adding that "The money was purportedly used as payment for business promotion."Ms Akuffo also accused Essien of giving some liquidity […]

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