- In August 2017, the Bank of Ghana revoked the licence of Capital and UT banks
- After two years, the government has now sued the founder of Capital bank and three others for their roles leading to the collapse.
- The other three are Fitzgerald Odonkor, Kate Quartey-Papafio and Tetteh Nettey
The State has filed a suit against the founder of defunct Capital Bank, William Ato Essien, Managing Director of defunct Capital Bank, Fitzgerald Odonkor and two others over the collapse of the bank.
In its lawsuit, the state levelled 26 different offences for their roles leading to the collapse of the bank in 2017.
The state accused William Ato Essien and Tetteh Nettey of “conspiracy to steal contrary to sections 23 (1) and 124 (1) of the Criminal Offences Act, 1960 (Act 29).”
“William Ato Essien and Tetteh Nettey between October and November 2015 in Accra in the Greater Accra Region agreed to act together with a common purpose to steal the sum of GHc100,000,000,” the writ said.
It added that “Fritzgerald Odonkor in September 2015 in Accra in the Greater Accra Region abetted William Ato Essien to dishonestly appropriate the sum of GHc5,000,000 the property of Capital Bank Limited. William Ato Essien in September 2015 in Accra in the Greater Accra Region dishonestly appropriated the sum of GHc12,000,000 the property of Capital Bank Limited.”
On the charge of money laundering, the writ stated that: “William Ato Essien and Kate Quartey-Papafio between June and August 2017 in Accra in the Greater Accra Region disguised the sum of GHc70,000,000 knowing it to be proceeds of crime.”
This suit is coming after the Attorney General recently announced that 50 directors and owners of collapsed banks will soon be prosecuted.
Meanwhile, receivers for the banks have also started legal proceedings against them for their roles in the collapse of the banks.
The other bank was UT bank. The two banks were taken over by the state-owned GCB Bank.
Meanwhile, Beige Bank, Sovereign Bank, Construction Bank, uniBank, and Royal Bank, were consolidated into the Consolidated Bank of Ghana in 2018.