General News of Tue, 14 Aug 201813

Capital Bank collapse: I’m cooperating with EOCO’s investigation – Otabil

Head pastor of International Central Gospel Church (ICGC) and Board Chairman of defunct Capital Bank, Dr. Mensah Otabil, says he is cooperating with the Economic and Organised Crime Office (EOCO) in the investigation of the collapse of the bank.

“Since the takeover of the bank exactly a year ago today, various mandated state institutions have been investigating and working to arrive at a comprehensive understanding of what happened, why it happened and who was responsible for what. I have been invited by EOCO and I have submitted myself to their processes and answered all their questions faithfully,” he said in a statement.

“…As a believer in the rule of law, I will continue to cooperate with the mandated institutions of state as they complete their investigations. I am confident that in the process, the national interest and the rights of all parties involved will be protected,” he added.

Capital Bank collapsed a year ago together with UT bank because according to the Bank of Ghana, the two banks were “deeply insolvent.”

They were acquired by GCB bank.

But a leaked investigative report had shown that officials of Capital bank squandered some GHc610 million liquidity support given it by the central bank.

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The report also noted that instead of using the money to resuscitate Capital bank, the management, with the approval of the Board Chair, diverted the money for other uses, leading to the eventual collapse of the financial institution in August 2017.

According to the report, Dr. Otabil promised to have the officials indicted refund the monies by March 2016 but failed to do so.

Meanwhile, Otabil in a statement released on Tuesday, August 14, 2018, denied direct involvement in the woes of the financial institution.

“My position was a non-executive role. I was therefore not involved in the day-to-day management and operations of the Bank. In the course of time, some decisions made turned out well while some did not turn out as well as had been anticipated. As far as I can tell, everything was done with the best of intentions and the interest of various stakeholders in mind,” he added.

Below is the full statement from Otabil:

PRESS RELEASE FROM PASTOR MENSA OTABIL RE: CAPITAL BANK AND RELATED MATTERS

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Greetings!

1. I have observed with concern, the ongoing media discussions regarding developments in the Banking Sector and my role either directly or indirectly.

2. I accepted to be Board Chairman of Capital Bank in a bid to help strengthen a promising Ghanaian enterprise that had potential but also challenges. I was excited about the prospects of a young man from a disadvantaged background who was daring to create opportunities and employment.

3. My position was a non-executive role. I was therefore not involved in the day-to-day management and operations of the Bank.

4. In the course of time, some decisions made turned out well while some did not turn out as well as had been anticipated. As far as I can tell, everything was done with the best of intentions and the interest of various stakeholders in mind.

5. My foremost concern, as has been the case over the past year, is for the well-being of those who lost their jobs and those who may have been adversely affected in any way as a result of these developments. My heart goes out to them and to their dependents. I continue to pray for God’s guidance and sustenance as they navigate the course of their lives.

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6. Since the takeover of the bank exactly a year ago today, various mandated state institutions have been investigating and working to arrive at a comprehensive understanding of what happened, why it happened and who was responsible for what. I have been invited by EOCO and I have submitted myself to their processes and answered all their questions faithfully.

7. For some time now, many discussion platforms have made varied references to me and to my perceived role. Some have reached out to me for clarifications regarding issues that have been raised. I have preferred not to respond in the public domain, not as an admission of guilt, but out of respect for the due process and the ongoing investigations.

8. Notwithstanding some unforeseen outcomes, I remain resolute in my belief in the Ghanaian and African entrepreneurial spirit. I will therefore continue to lend my support and mentorship to inspire others who dare to dream and work towards the promise of Africa’s growth and transformation.

9. Meanwhile, as a believer in the rule of law, I will continue to cooperate with the mandated institutions of state as they complete their investigations. I am confident that in the process, the national interest and the rights of all parties involved will be protected.

Shalom, peace and life to you.

Signed,

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Pastor Mensa Otabil.

14th August, 2018.

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