Otabil, ICGC And 13 Others Sued Over Capital Bank’s Collapse

Pastor Mensah Otabil, general overseer of the International Central Gospel Church (ICGC), 13 shareholders and directors of the defunct Capital Bank Ghana Limited and ICGC have all been sued for allegedly engaging in acts that led to the collapse of the bank.

According to the plaintiffs, the collapse of Capital Bank was a “direct result of the defendants’ misgovernance” and “willful” breaches of banking regulations.

The writ of summons listed the actions of each of the defendants and confirmed a financial autopsy report that said Capital Bank’s founder William Ato Essien, used depositors funds as his ‘personal piggy bank.’

Mr Vish Ashiagbor and Mr Eric Nipah filed the suit at the Commercial Division of the Accra High Court.

The plaintiffs are seeking to use the legal action to recover over GH₵837 million being what they said were loans granted to the shareholders which remains unpaid.

Defendants

The other shareholders and directors joined to the suit as defendants include Mr William Ato Essien, former Chief Executive Officer of the bank, Oheneba Osei-Akoto, Stephen Enchill, Kingsley Atta Ghansah, Otabil & Associates, Kwadwo Ayisi-Ahwireng, Isaac Osah Thompson-Mensah and John Kofi Mensah.

The rest are Edwin Obeng Donkor, Fitzgerald Odonkor, Amadu Montia, Kofi Kwakwa and Francis Adu Mante.

The suit outlined the role of each defendant and confirmed a financial autopsy report that said the failed bank’s founder William Ato Essien used depositors funds as his ‘personal piggy bank’.

Background

Capital Bank, along with another indigenous bank, UT Bank, collapsed in August last year due to liquidity challenges and all their assets taken over by state-owned GCB Bank.

Capital Bank received GHS 610 million from the Bank of Ghana to cure its liquidity struggles, funds allegedly mismanaged, leading to its collapse.