The Receiver of Capital Bank, Vish Ashiagbor, has told an Accra Commercial Divisional High Court that he had suspicions over some certificates in a total sum of GH¢105 million used as collateral by three companies to secure loans from the defunct bank.
Mr Ashiagbor, who is the Director of Price Waterhouse Coppers (PWC), was in court as first prosecution witness (PW1) for the trial of the former management of the defunct Capital Bank.
His doubt over those certificates was that until they took over the receivership of the company, those certificates were not to be found.
The PWC Director told this to the court, presided over by a Court of Appeal Justice sitting as an additional judge of the High Court, Justice Eric Kyei Baffour.
Meanwhile, Baffour Gyawu Bonsu, lawyer for the first accused person, William Ato Essien, Founder of the defunct Capital Bank, in disagreement, said the companies had transactions with the bank in an amount of GH¢70 million, and that resulted from rediscounting invoices.
According to the defence counsel, the said companies had executed work for the Department of Urban Roads and were issued certificates for payment.
He, therefore, asked Mr Ashiagbor whether he can confirm the value of those certificates held by the three companies from the Department of Urban Roads, but PW1 answered that “our report was based on documentation available at Capital Bank.”
The lawyer further added that in the report prepared by the Receiver, it established that Capital Bank wrote to the Department of Urban Roads and it was confirmed that those certificates existed.
He pointed out to Mr Ashiagbor that it contained in his report that it was established that it was normal practice for Capital Bank to discount facilities or invoices by giving them lesser amounts in this case.
And, in this particular case, Capital Bank was expected to make a profit of GH¢30 million from discounting the certificates held by the three companies.
He noted that these certificates were assigned to Capital Bank as collateral for the sum of GH¢105 million for the three companies, but the Receiver responded that it was one of the reasons they found the transactions suspicious.
The Receiver was then asked whether they wrote to the Department of Urban Roads to confirm whether those certificates existed or not, but Mr Ashiagbor answered in the negative, saying, “No we did not. We reviewed the documentation that […]
Receiver of Capital Bank doubts certificates issued by 3 coys
