I expressed reservations about GH¢ 27.5M paid to Ato Essien – Capital Bank former MD

The former Managing Director (MD) of defunct Capital Bank, Rev Fitzgerald Odonkor has told an Accra High Court that he was not in support of the decision by the Bank’s Board to pay its founder William Ato Essien an amount of GH¢ 27.5 million. 

Taking the witness stand today, April 7, 2022, Mr. Odonkor insisted that he did not approve the said payment of his own will. 

“All I did was only to execute the decision of the Board, which decision I expressed reservations about because I thought it was not in the interest of the bank. Although it was an industry practice, it was outlawed by the Bank of Ghana,” he said.

The GH¢27.5 million cedis allegedly received by Mr. Essien has become a contentious issue in the trial. The prosecution has held that Mr. Essien appropriated the money, aided by former MD Odonkor.   

Essien on the other hand insists it was money he legitimately earned as a transaction advisor in securing the liquidity support from the BoG. When he took his stand in February, he testified that the GH ¢ 27.5 million paid him was finder’s fees.

Fitzgerald Odonkor and Ato Essien are also alleged to have transferred an amount of GH¢120 million of the GH¢620 million liquidity support given to the bank by the Bank of Ghana (BoG) to All-Time Capital Limited, arrangers for Capital bank and MC management services. 

The said amount according to prosecutors was used to set up Sovereign Bank.

The former MD however told the court he was unable to speak to the matter on the transfer of the said funds, but at the same time indicated that the Board’s approval of the transfers was to have the funds serve as investments of 90-day maturity.

Background

Capital Bank was one of the first banks to fold up during the start of the financial sector clean-up by the Bank of Ghana in 2017. 

State Prosecutors have accused the founder of the bank, William Ato Essien, of causing the insolvency of the bank by stealing about GH¢200 million of a GH¢620 million liquidity support given to the bank by the Bank of Ghana (BoG).

Rev. Odonkor is standing trial alongside the bank’s founder Ato Essien and businessman, Dr Tetteh Nettey for various offences - stealing, abetment to steal, conspiracy to steal, and money laundering.