PricewaterhouseCoopers (Pwc) receiver of the defunct Capital bank on Friday, November 2, 2018 sued Mensa Otabil, his church ICGC and 14 shareholders and directors over the collapse of the Capital bank.

The Plaintiffs Messrs Vish Ashiagbor and Eric Nana Nipah from PricewaterhouseCoopers say capital bank’s collapse was a ‘direct result’ of defendants’ “‘misgovernance” and ‘willful’ breaches of banking regulations.

The writ of summons enumerated the wrongs of each of the defendants and confirmed a financial autopsy report that said its founder William Ato Essien used depositors funds as his ‘personal piggy bank’.

In one such ‘personal piggy bank’ transactions, Ato Essien requested for a ¢130m loan to be given to an investment company he owned, Capital and More Ltd.

However, the senior management of the defunct capital bank declined the disbursement of the money which was public funds from the Bank of Ghana injected to save the troubled bank in 2015.

Also, the writ advanced that Pastor Mensa Otabil who as Board chairman provided a personal guarantee that the loan to the CEO’s other company will be repaid.

The statement of claim said the money given out in 2015 has not been paid after three years.

The writ faulted the pastor for guaranteeing the disbursement, even though he was “conscious at all material times” that it was in breach of banking regulations as well as against the “expressed opposition” of the senior managers.

That 130m was not the only loan William Ato Essien took from his bank. There was another ¢29. 9m he caused to be granted companies he owned or was related to.

The CEO of the defunct Capital bank later came for another ¢78. 9m in loans.

William Ato Essien has been asked in the writ to cough up more than ¢580m in shareholder loans he took as well as loans granted to companies he owned or is related to.

Furthermore, as a result of severe and acute culture of mismanagement at the defunct bank, the directors and shareholders kept ¢482m in “non-existent investments” in their books.

Till date, a shareholder Otabil and Associates, founded by the pastor and management expert have been unable to pay ¢51. 6m which is their share of the loan converted from the imaginary investments.

Autobus church the International Central Gospel Church, which was a shareholder in the bank has also failed to pay ¢51. 6m which is also their share of the 482m loan.

A third defendant, Oheneba Osei-Akoto took a ¢2. 42m loan in December 2016 using his residential property at Regimanuel Gray Estates at East Legon as collateral.

The defendant and shareholder have failed to pay back the money.

ALSO READ:Capital bank collapse: Ato Essien, two others owed GH¢79.9m

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