The State today [Thursday] opened its case against Senior-level Executives of the defunct Capital Bank.
Chief State Attorney, Marie Appiah Opare, through a Receiver for the Defunct Bank, Vish Ashiagbo, presented the State’s case against the accused persons.
According to the State, the Bank of Ghana revoked Capital Bank’s license in August 2017 because the accused persons had misapplied the Central Bank’s liquidity support to the struggling entity at the time.
It is alleged that Ato Essien, Fitzgerald Odonkor, Tetteh Nettey and Kate Quartey Papafio, used GHS 27.5 million for business promotion, GHS 120 million transferred to All-Time Company Limited and eventually used to set up Sovereign Bank.
There are allegations that GHS 70 million was transferred to Kate Quartey Papafio which she, in turn, used to buy shares in Capital Bank.
Thaddeus Sory, a lawyer for the Defence, in cross-examining the evidence of the State, however, argued that the Receivers, Vish Ashaigbor and Nana Nipah, were in conflict of interest when they engaged Price Waterhouse Coopers Ghana Limited, a company at which they’re both Directors to compile a report against the defendants.
He argued further that the Central bank contracted the two individuals, not their company, to undertake the exercise.
The case has been adjourned to July 16 for cross-examination to continue
Meanwhile, the State says it is still in negotiations with Mr. Ato Essien on his proposal to refund the GHS 27.5 million he is alleged to have used for business promotion.
Mr. Ato Essien and three other former top executives of the collapsed entity; Fitzgerald Odonkor, Tetteh Nettey and Kate Quartey-Papafio have been charged with 26 counts of criminal offenses including stealing and defrauding by false pretenses, for their respective roles in the collapse of the bank.