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Business News of Tuesday, 14 August 2018

Source: citinewsroom.com

Capital Bank Collapse: Ato Essien, two others owed GHC79.9m

An internal report on the erstwhile Capital bank has shown that the bank’s founder, William Ato Essien and two others, were indebted to the bank to the tune of 79.9 million cedis (GH¢79,937,812) as at the time the bank collapsed.

This represented about 60 percent of the total Third Party Funds.

The report mentioned William Ato Essien, owed the highest.

The report showed that total third Party Funds which refers to a financier of one or more transactions but has a lesser interest, amounted to 136.7 million cedis.

Of the amount, 56.7 million cedis was to be debited to shareholders while the remaining 79.9 million cedis was debited to William Ato Essien and the two other shareholders; Dr Stephen Enchill and Mr. Isaac Osah Thompson-Mensah.

William Ato Essien, the founder of the bank, is indebted to the tune of 77 million cedis while Dr. Enchill and Mr. Osah are indebted to the tune of 1.2 and 1.5 million cedis respectively.

Also, it emerged that a property belonging to the bank at Labone, cost 3 million dollars of which an amount of 2 million cedis was taken from the bank’s resources as part payment.

Though an account was opened for purposes of payment for the property, only 2 million cedis out of the 5.8 million cedis could be accounted for as there were no confirmations for the other transactions.

The committee recommended that Mr. William Ato Essien be allowed to keep the Labone Property upon the payment to the Bank of an amount of 5.19 million cedis being the sum total of the 2 million cedis and the interests.

Failure to do so within seven days like other infractions should warrant attaching the individual’s shares and or personal properties.