AG Office Rejects Refund Deal by Founder of Defunct Capital Bank Ato Essien

A refund agreement deal submitted by the founder of Defunct Capital Bank William Ato Essien has been rejected by the Attorney General Office.

Chief State Attorney, Marina Appiah Opare on Thursday told the High court the agreement was “totally unacceptable” and unfavorable to the state.

Mr. Essien and three others – Fitzgerald Odonkor, Tettey Nettey, Kate Quartey-Papafio – are facing 26 charges for various roles they played that led to the collapse of the financial institution.

Ato Essien’s lawyers last month informed the Court presided over by Justice Eric Kyei Baffour that they are engaging the AG based on section 35 of the court’s act which allows for an offer of compensation or restitution in respect of some the charges brought against accused persons.

According to the lawyers of Mr. Essien they had already indicated to EOCO that their client was willing and ready to return some ¢27 million to the state.

The lawyers revealed he has paid close to ¢1.4 million and also given out some 19 newly cleared cars from the port to the state.

The Attorney General’s office in response confirmed the negotiations and informed the court that they will consider it.

The judge Justice Kyei Baffor adjourned the case to June 18, 2020, for the two parties to report back to him.

Chief State Attorney Marina Appiah Opare on Thursday informed the court the terms were not favorable to the state.

She said the state has since received another proposal and was currently studying it.

She said this deliberation should not stop the trial from proceeding since the negotiation will affect only four of the charges.

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Lawyer for Mr. Essien, Baffour Gyawu Bonsu Ashia urged the court to adjourn the case explaining that reaching an agreement will substantially affect the case.

Justice Kyei Baffour adjourned proceedings to July 9 saying should the state fail to reach an agreement the case will proceed

Background

Capital Bank was one of the first banks that collapsed after a massive clean-up of financial institutions by the Bank of Ghana (BoG) started in 2017.

On August 14, 2017, its licence and that of UT Bank were revoked by the BoG, after it had declared them insolvent.

The BoG 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 prosecution, led by the Attorney-General (A-G), Ms Gloria Afua Akuffo, accused the four people of engaging in various illegal acts that led to the dissipation of the GH¢620 million liquidity support given to Capital Bank by the BoG between June 2015 and November 2016.

It is the case of the A-G that Essien, with Odonkor’s aid, transferred the liquidity support to certain companies either controlled by him or in which he had interest.

According to the A-G, 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¢c27.5 million of the liquidity support  by carrying it in jute bags.

The prosecution also accused Essien of giving some liquidity support to his cronies in the form of a loan to be used to buy shares in Capital Bank.