Founder, former Chief Executive Officer and ultimate beneficiary of the defunct Capital Bank, William Ato Essien, says an amount of 27.5 million Ghana cedis he is alleged to have dishonestly taken from a total of 620 million Ghana cedis liquidity support given to Capital Bank by the Bank of Ghana in 2016, was a “finder’s fee” paid lawfully to him.
William Ato Essien made the claim when he answered questions under cross examination by Chief State Attorney, Evelyn Keelson, today 24 February 2022, before Justice Eric Kyei Baffour's court (Commercial High Court 7).
Finder’s fee
Chief State Attorney, Evelyn Keelson, posited to the Accused Person as follows; “I am putting it to you that you took Ghc27.5m from Capital Bank out of a total liquidity support of Ghc620m received from Bank of Ghana (BoG) under the guise of paying this amount to BoG officials who you claimed had facilitated the disbursement”.
To this, Mr. Essien answered, “No My Lord. I was rather paid my finder’s commission and in that respect, approvals were duly given by the board in recognition of the successful achievement of the Ghc620m. And My Lord, this transaction is not the first time that I had found money from a government institution for the bank.”
The Chief State Attorney pushed back saying, “I am putting it to you that the purpose of dishonestly taking the Ghc27.5m from Capital Bank was not for any BoG officials but to complete the establishment of your Ocean Spring company”.
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Ato Essien again answered, “I had not said anywhere and claimed anywhere that I gave the money to any official of the Bank of Ghana. Finder’s fee is paid to the finder and not the giver. As to where I put the money I had stated consistently and time without number that the money was invested in Ocean Spring.”
No contract
Asked if he [William Ato Essien] had any contract with Capital Bank that justified the said payment of what he called "finder’s fee", the Accused Person indicated that he did not have a written agreement but he had an oral one and "like the lawyers say, a verbal agreement is as good as a written agreement".
The Chief State Attorney Keelson pushed further, “You have no appointment from the bank (Capital Bank), no documentation from the bank to support your claim that you were a transaction advisor. Is that not so?”.
Mr. Ato Essien answered; “My Lord, as the lawyers will say, an oral agreement is as good as a written agreement.
“My Lord I had been finding money for the bank ever since I stepped down as the Chief Executive Officer and Managing Director in 2012.
“The bank never refused any money I found for it and the bank never refused paying me my finder's fee.
“So My Lord, I was duly and have been duly contracted to find the bank money since 2012 up until 14 August 2017 when the license of the bank was revoked.
“I had mobilised money and I had been duly paid for my services for finding those monies for the bank,” the Accused Person said in his answer.
Board approval
Probing further, the Chief State Attorney, Evelyn Keelson, asked William Ato Essien, whether or not the Board of Directors of Capital Bank approved the payment of the "finder’s fee" to him, stating, “It is clear that there was no Board approval for the payment of Ghc27.5 million cedis to you.”
In answer, Mr. Essien stated, “Management approval is a tacit approval for the servant of the bank.
“The clarification here is, when EOCO had demanded a documentary engagement of the role I played, in my answer and to that I had said management’s oral agreement was all that I needed to proceed to find the bank the money and not the case of the Board approving payment of finder’s fee. This was the context in which this statement was written.”
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The State Attorney pushed on, “I am putting it to you that out of liquidity support of Ghc620m that was granted to Capital Bank, approximately Ghc200m was dishonestly taken by you out of the bank.”
Mr. Essien responded, “It's not correct. I say so because I am not a management member of the bank. I am not a signatory to the bank. I am not part of the day to day operation of the bank. I therefore cannot have access to the treasury of the bank.”
The State Attorney opined, “This money was for your personal use in setting up Sovereign Bank and completing the establishment of Ocean Spring.”
Again, Mr. Ato Essienresponded, “My Lord, I never had any personal benefit and my personal bank account can prove same.”
Next sitting
Chief State Attorney, Evelyn Keelson, subsequently told the court that the state had no further questions for the Accused Person.
Justice Eric Kyei Baffour adjourned sitting to 3 March 2022 for the First Accused Person, William Ato Essien, to call his first witness.
Background
The state has called 17 prosecution witnesses in all throughout the case. Among the witnesses were Vish Ashiagbor, one of the receivers appointed to wind up Capital Bank; Michael Kwame Amoako-Atuobi, a former Relationship Manager for Capital Bank; Emmanuel Kontoh Arthur, a former General Manager in charge of Treasury at Capital Bank; Sharon Okwaa Boateng, a former Supervisor of the Cash Management Unit at Capital Bank; Benone Yaw Asihene, a former Special Assistant to the Executive Committee; Donatus Kwesi Freitas, an officer of the Bank of Ghana; Daniel Gaikpah, the former Chief Banking Officer in charge of Operations with Capital Bank; and Lawrence Otoo, a banker.
The rest are Felix Koranteng-Asante, a businessman who dealt in installation of CCTV cameras; Peter Amadu Iliasu, the former Chief Executive of All Time Capital Ltd; Aseye Seyram Komla Akotia, a former Vice-President in charge of Investment with All Time Capital Bank; Kwame Acheampong Kyei, a former Chairman of Sovereign Bank; Edem Bart Williams, a former Chief Executive Officer of Nordea Capital; Ali Seidu, Chief Executive Officer of Maripoma, Volta and Impex Ltd; Teddy Friko, assistant to Ali Seidu; Chief Superintendent Ernest Frimpong of the Special Investigations Team; and Joseph Oppong, the investigator.
Facts of the case
According to the facts sheet, “The First Accused Person, William Ato Essien, was the majority shareholder of Capital Bank Limited (Capital Bank), a wholly owned Ghanaian Bank which previously operated as a microfinance company.
The Second Accused Person, Tetteh Nettey, was the Managing Director of MC Management Services, a company established by the First Accused Person purposely for the promotion of the incorporation of Sovereign Bank, another brainchild of the First Accused Person.
“The Third Accused Person, Fitzgerald Odonkor, was the Managing Director of Capital Bank from June 2015 to August 2017 and the Fourth Accused Person, Kate Quartey-Papafio, is a businesswoman and Chief Executive Officer of Reroy Cables Company Limited.”
The facts further state, “Between June 2015 and November 2016, pursuant to an application by Capital Bank, the Bank of Ghana (BOG) provided a total sum of GHC620 million as liquidity support to Capital Bank to enable it meet its capital adequacy ratio and to enable it service its maturing debt obligations.
“In October 2015, the First Accused Person, aided by the 3rd Accused Person, caused a transfer of a sum of GHC120 million of the liquidity support amount to All Time Capital Limited (All Time), an investment management and advisory firm.”
“At the instance of the First, Second and Third Accused persons, GHC100million of the GHC120 million which had been transferred to All Time, was further transferred to MC Management Services while GHC20 million of the amount of GHC120 million was transferred to Pronto Construction and Supplies Limited (Pronto Construction).
“The sum of GHC100 million which was transferred to MC Management Services was subsequently represented by the Second Accused Person to BoG as initial capital of Sovereign Bank while the GHC20 million that was transferred to Pronto Construction was used by the Managing Director of Pronto Construction, ostensibly to purchase shares in Capital Bank.
“Again, at the instance of the First and Third Accused persons, GHC65 million out of the BoG liquidity support of GHC620 million was transferred to Nordea Capital Limited described as an investment bank”.
“Of the amount of GHC65 million, the First Accused Person, aided by the Third Accused Person, caused GHC30 million to be transferred to MC Management Services which was represented to BoG as additional initial capital of Sovereign Bank by the Second Accused Person.”
The facts further state, “With the aid of the Third Accused Person, the remaining GHC35 million of the GHC65 million was paid into a Fidelity Bank account of Brietling Services, a company also established by the First Accused Person.”
“At the request of the First Accused Person, the amount of GHC35 million which was transferred into the account of Brietling Services was subsequently transferred to Capital Africa Group, a company owned by the First Accused Person.”
“The total amount of GHC130 million which was represented as initial capital of Sovereign Bank was eventually channelled by the First and Second Accused accused persons into Capital Africa Group, the First Accused Person’s company, less bank charges. The monies transferred into Capital Africa Group was eventually dissipated by the First and Second Accused persons.
“Between June 2015 and October 2016,” the facts further state, “the First Accused Person, with the support of the Third Accused Person, appropriated a total of GHC27.5 million of the liquidity support which was conveyed in jute bags to the First Accused Person and purportedly used as payment for business promotion.
“In June 2017, in furtherance of the conversion of portions of the GHC620 million liquidity support, the First Accused Person caused a sum of GHC100 million to be paid into a Capital Bank account held by the Managing Director of the following three companies: Maripoma Enterprise Limited, Hardwick Limited and Volta Impex Enterprise Limited opened purposely to receive the amount.
“The GHC100 million was to be used by the Managing Director of the three companies, ostensibly as payment for 30% shares in Capital Bank. As a cover-up of the conversion, the First Accused Person prevailed on the Managing Director of the companies to submit copies of Government Payment Certificates of the three companies valued at GHC135 million to be discounted to GHC105 million by Capital Bank, to be used as collateral for the purported loan of GHC100 million.
“The First Accused Person then caused GHC70 million out of the GHC100 million that had been previously paid into the Managing Director’s account at Capital Bank, to be transferred to the Fourth Accused Person’s account with Calbank Limited.
“The First and Fourth Accused persons subsequently caused the amount of GHC70 million in the Cal Bank account of the Fourth Accused Person to be further transferred into a personal account of the Fourth Accused Person purposely opened at Capital Bank to receive the amount.
The facts sheet sums up as follows, “Sometime in 2017 after Capital Bank had gone into receivership, the Fourth Accused Person, even though fully aware that Capital Bank had gone into liquidation, attempted to withdraw the whole amount of GHC70 million which had been lodged in her personal account with Capital Bank but was however prevented from doing so by the receiver.”