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Capital Bank collapse: Ato Essien, others plead not guilty in court

Tue, 15 Oct 2019 Source: www.ghanaweb.com

Founder of defunct Capital Bank, William Ato Essien and three others, have pleaded not guilty to 26 charges levelled against them by the state.

Ato Essien was charged with 26 offences by the state, leading to the collapse of bank in 2017.

The charges include conspiracy to steal an amount of GH¢100,000 between October and November 2015 and money laundering.

Charged along with three others including Fitzgerald Odonkor, Tetteh Nettey and Kate Quartey-Papafio who were all executives of the bank, Mr. Essien appeared before the court Tuesday October 15 to respond to the charges.

Background

The Bank of Ghana on Monday, August 14, 2017, revoked the licenses of UT and Capital banks due to their insolvency, leading to a seamless takeover of the two banks by GCB Bank.

This was due to their inability to perform within the banking industry.

The BoG therefore allowed the state-owned bank, GCB Bank, to acquire the two banks in order to protect depositors’ funds and also enable them to stay afloat.

The hurricane that swept through the banking industry due to the collapse of the two banks further heightened in August 2018 when the central bank collapsed five other indigenous banks and merged them into one entity known as the Consolidated Bank.

Over a year the state The founder of defunct Capital Bank, William Ato Essien, and three other persons have been charged by the state with 26 offences for their roles leading to the collapse of the bank.

The three other are Fitzgerald Odonkor, former CEO of the Bank; Dr Tetteh Nettey, owner of MC Management Services Ltd and Kate Quartey-Papafio, CEO of Reroy Cables Lt.

The accused persons have so far been granted a GH¢200 million bail each by an Accra High court.

This was when the accused persons appeared in the court on Tuesday.

To secure bail, Ato Essien, Tettey Nettey and Fitzgerald Odonkor have been asked to deposit their passports at the court and provide four sureties each.

A fourth accused person, Kate Quartey Papafio, was also granted bail to a tune of GH¢75 million with four sureties. She is also required to deposit her passport at the court.

Source: www.ghanaweb.com

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