Capital Bank Board squandered BoG cash – Report

Findings on the collapse of Capital Bank has revealed that the founder, Ato Essien, used GHS80m of depositors and public funds for scores of his personal businesses.

The report further indicates, the businessman personally invested these monies into businesses in breach of all banking and risk management rules.
The money was pushed into ten businesses in Ghana including:

Ocean Spring Mineral Water, Brietling Services, Gye Nyame Realty Ltd, Capital and More Co. Ltd, Accent Financial Services Ltd, Life Assurance Ltd, Capital Africa Group, Nordea Capital, Commerz Savings and Loans and the now-defunct Sovereign Bank.

Not done, some 130m was transferred to Alltime Capital, a transfer that needed some explanation from the CEO Ato Essien who said the transfers were “strategic,” and “highly classified information.”

The transfers were expected back into the bank by March 2016 – in five months, he said with additional assurance from the chairman, Dr. Mensa Otabil.

Alltime Capital, all this time, was however acting as an arranger for the transfer of the ¢130m to two other companies.

MC Management Services Ltd owned by one Dr. Tetteh Nettey and Abdul Rahman Abukari got ¢100m cedis and Pronto Construction and Supplies Ltd owned by one Paanii Tackie who got ¢20m.

Capital Bank also invested in Zimbabwe with First Capital Plus LLC, Gye Nyame Resources LLC, Bill Minerals LLC.

Some funds were also pumped into Essien Swiss International Capital Holdings (ESICH). The Bank of Ghana collapsed Capital bank in August 2017.