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Business News of Wednesday, 14 July 2021


FLASHBACK: I was not involved in the daily management of Capital Bank – Dr. Mensa Otabil

Dr. Mensa Otabil, founder of International Central Gospel Church Dr. Mensa Otabil, founder of International Central Gospel Church

Three years ago, the Founder of the International Central Gospel Church Dr Mensa Otabil said he was never involved in the day-to-day activities of defunct bank Capital Bank.

Dr Otabil was alleged to have played role in the mismanagement of the funds of the bank.

Read the full story below

Dr. Mensa Otabil, founder of International Central Gospel Church
The Founder and General Overseer of the International Central Gospel Church (ICGC), Dr Mensa Otabil, has finally broken his long silence on the collapse of Capital Bank.

Dr. Mensa Otabil has come under serious scrutiny on his role in the misuse of over 610 million Ghana cedis given to the Capital Bank as liquidity support.

Dr. Mensah Otabil was the board chairman of the collapsed Capital Bank. According to a statement issued my the chancellor of Central University, he played a non-executive role in the management of the bank and therefore not informed in the day to day management of the collapsed bank.

He went on to state that he accepted to be the board chairman of the said bank only so they can work towards helping the ordinary Ghanaian and to improve the prospect business sector of the country.

He however stated that some mandated state institutions have been involved in investigating him and other executives of the bank and since he is a believer in the rule of law, he will always make himself available to these state institutions when called upon.

Below is the full statement published below.

Re: Capital Bank And Related Matters


1. I have observed with concern, the ongoing media discussions regarding developments in the Banking Sector and my role either directly or indirectly.

2. 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.

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

4. 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.

5. My foremost concern, as has been the case over the past year, is for the well-being of those who lost their jobs and those who may have been adversely affected in any way as a result of these developments. My heart goes out to them and to their dependents. I continue to pray for God’s guidance and sustenance as they navigate the course of their lives.

6. Since the takeover of the bank exactly a year ago today, various mandated state institutions have been investigating and working to arrive at a comprehensive understanding of what happened, why it happened and who was responsible for what. I have been invited by EOCO and I have submitted myself to their processes and answered all their questions faithfully.

7. For some time now, many discussion platforms have made varied references to me and to my perceived role. Some have reached out to me for clari?cations regarding issues that have been raised. I have preferred not to respond in the public domain, not as an admission of guilt, but out of respect for the due process and the ongoing investigations.

8. Notwithstanding some unforeseen outcomes, I remain resolute in my belief in the Ghanaian and African entrepreneurial spirit. I will therefore continue to lend my support and mentorship to inspire others who dare to dream and work towards the promise of Africa’s growth and transformation.

9. Meanwhile, as a believer in the rule of law, I will continue to cooperate with the mandated institutions of state as they complete their investigations. I am con?dent that in the process, the national interest and the rights of all parties involved will be protected.

Shalom, peace and life to you.

Signed, Pastor Mensa Otabil. 14th August, 2018.

BoG statement on GCB take over of UT, Capital Bank [released last year]

The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

The Bank of Ghana has revoked the licences of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital.

The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).

The main offices and branches of UT Bank and Capital Bank will be under the control of GCB bank and will be opened at 1 pm today (Monday, August 14) for normal business transactions. Customers of UT Bank and Capital Bank are now customers of GCB bank.

All deposit customers will continue to have access to their funds. UT Bank and Capital Bank branches and ATMs will continue to operate as normal as GCB bank branches and ATMs.

All staff in the interim will become staff of GCB bank and GCB Bank will negotiate the terms of their contract.

GCB was selected amongst 3 others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio.

The Bank of Ghana assures the public that all customers can continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB bank.

The approval by the Bank of Ghana of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds.

The Bank of Ghana reassures customers of UT Bank and Capital Bank that their money is safe and they can continue to do business at their respective branches which are now the branches of GCB Bank.