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General News of Tuesday, 14 August 2018


Bank Crisis: Otabil can’t absolve himself – Financial Analyst

Financial analyst Jerry Larbi has said Dr. Mensa Otabil cannot absolve himself of blame in the financial mismanagement that led to the collapse of Capital Bank.

In his view, claims by Dr. Otabil that he was not an executive chairman of the defunct bank hence not involved in the day to day administration of the bank, is not enough to exonerate him.

The ICGC founder who has been fingered in the collapse of the bank, in a statement, claimed he was not directly responsible for the administration of the bank.

“I accepted to be Board Chairman of Capital Bank in a bid to help strengthen a promising Ghanaian enterprise that had potential but also challenges. I was excited about the prospects of a young man from a disadvantaged background who was daring to create opportunities and employment.

“ My position was a non-executive role. I was therefore not involved in the day-to-day management and operations of the Bank.

“In the course of time, some decisions made turned out well while some did not turn out as well as had been anticipated. As far as I can tell, everything was done with the best of intentions and the interest of various stakeholders in mind,” Dr. Otabil said among other things on Tuesday.

Reacting to the development, Mr. Larbi said boards and Chief executives do not take major decisions without the knowledge and approval of the board chair.

“Board members take executive decisions that will and must be in the best interest of the bank. As a Chairman of the Board, there will never be a time that decisions will be taken without you knowing about it. Whatever happens, the blame goes to the Chairman and the Board Members.

“As the Chairman, he should accept and take all the blame even if management was taking all decisions behind his back. The Managing Director and Management alone cannot take decisions without making the board aware. It can never happen. There is no way high executive decisions will be taken and it will not be brought to the attention of the Board,” he told host Francis Abban Tuesday.