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Capital Bank saga: Ato Essien ready to pay back GH¢27m to state
Lawyers of the former Chief Executive Officer (CEO) of Capital Bank, William Ato Essien, who is facing trial for the collapse of the financial institution, have indicated that their client is willing and ready to return about GH₵ 27 million to the state.
Mr Ato Essien has begun negotiations with the Attorney General to have some of the charges brought against him dropped.
His lawyers revealed that he has paid close to GH₵ 1.4 million and also given out some 19 newly cleared cars from the port to the state.
According to the lawyers, led by Thadeus Sory, engaging the AG based on section 35 of the Courts Act, which allows for an offer of compensation or restitution in respect of some of the charges brought against the accused persons is currently ongoing.
The lawyers have already indicated to the Economic and Organised Crimes Office (EOCO) that, their client was willing and ready to return about GH₵27 million to the state.
The Attorney General’s office in response confirmed the negotiations and informed the court that they will consider it.
The judge, Justice Kyei Baffour, adjourned the case to June 18, 2020, for the two parties to report back to him.
Mr Ato Essien is facing trial, with three former executives of the defunct bank; Fitzgerald Odonkor, Kate Quartey-Papafio and Tetteh Nettey for 26 charges levelled against them.
The prosecution, led by the Attorney General (AG), Ms Gloria Afua Akuffo, accused the four persons of engaging in various illegal acts that led to the dissipation of the GH¢620 million liquidity support given to Capital Bank by the Bank of Ghana between June 2015 and November 2016.
It is the case of the AG that Essien, with Odonkor’s aid, transferred the liquidity support to certain companies either controlled by him or in which he had an interest.
According to the AG, GH₵ 130 million of the liquidity support was transferred to MC Management Services, which was later presented to the BoG as the initial capital to set up Sovereign Bank, another bank in which Essien had an interest.
She further alleged that between June and October 2015, Essien, aided by Odonkor, appropriated GH¢27.5 million of the liquidity support by carrying it in jute bags.
“The money was purportedly used as payment for business promotion,” she told the court.
Ms Akuffo also accused Essien of giving some liquidity support to his cronies in the form of a loan to be used to buy shares in Capital Bank.
With regard to Quartey-Papafio, the A-G said as part of the scheme to further dissipate the GH¢620 million liquidity support, Essien transferred GH¢ 70 million of the money into Quartey-Papafio’s bank account at Cal Bank.
She further accused Quartey-Papafio of trying to withdraw the money in 2017, even though she was aware that Capital Bank had collapsed and was in receivership.
The withdrawal, the A-G submitted, was, however, prevented by the receivers of Capital Bank.
During his application for bail, counsel for Quartey-Papafio, Dr Dominic Ayine, a former Deputy A-G, rebutted the facts presented by the A-G.
He described the case as a ground-breaking one in the country’s jurisprudence.
“This is going to be the first case in the history of this country that stealing has occurred with the consent of the owner,” counsel contended.
Making his case, he argued that the GH¢620 million liquidity support was essentially a loan that was granted to Capital Bank by the BoG, which was supposed to be paid with interest.
“Essentially, this was money belonging to Capital Bank,” he said.
Counsel further submitted that per Section 60 of the Companies Act, 2019 (Act 992), there was nothing wrong with a lending institution giving out loans for people to buy in that institution.
Source: Citinewsroom.com
THE Gospel Advocates (TGA), a non-denominational evangelistic Christian organisation last Saturday donated a number of educational logistics to the Dodi Asantekrom Basic School in the Eastern region of Ghana.
The gesture was to mark the seventh anniversary of the organisation made up of professionals committed to preaching the gospel of Jesus Christ to students in senior high schools, particularly in rural communities.
TGA also seeks to inspire students towards attaining academic excellence and guiding them towards optimising the various learning opportunities and academic programmes available at the tertiary level.
Among the items donated were 100 desks, 10 cupboards, 10 desktop computers, two laptops, 10 teachers’ tables and chairs and others.
The group also held its annual outreach programme that had a significant impact in the community through initiatives such as feeding 500 children with hot meals and assorted drinks, providing free medical screening and drugs for 500 adults and youth and conducting health education and sensitisation for both children and adults.
TGA also took upon itself to restock the community clinic with essential medicines and distributed food items, plastic bowls, cups and clothing to members of the community.
The initiative, according to officials of the group, was supported by ORSAM Limited, Doctors Save Lives Foundation, Johnson Tord Foundation, El-Shaddai Mothercare, Exceed Alliance Limited, GB Foods Ghana Limited, Qualiplast Limited, Phyto-Riker (Gihoc) Pharmaceuticals Limited, Cosa Bright Ghana, Kabs Pharmacy, Tobinco Pharmaceuticals, Pill Bay Pharmacy and Bamah 3.7.7.
“We are deeply grateful for their immense support and partnership in bringing hope, relief, and practical assistance to the people of Dodi Asantekrom,” the officials said.
In a statement, the President and Chairman of The Gospel Advocates, Mr. Selom Kpikpitse, said the donation to Dodi Asantekrom forms part of TGA’s broader mission to propagate the gospel of Jesus Christ among students and youth in rural communities through teachings, music and arts.
He explained that the meals provided to over 500 pupils were in line with the organization’s annual “Feed the Kidz Project,” which demonstrates Christ’s love.
Receiving the items on behalf of the school, the Headmaster, Mr. Otumfour Newton, expressed gratitude to TGA and its sponsors, saying that “the items would significantly enhance teaching and learning while improving the overall welfare and development of the pupils.”
Mr. Newton also commended the team for the free medical screenings for adults and youth in the community, and other community engagements.
Medical supplies were also donated to the Dodi Asantekrom CHPS compound and received on behalf of the facility by Mr. Amefu, a Physician Assistant.
By Spectator Reporter
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AS Ghana celebrates its 69th Independence Day, the country reflects on the vision of its first President, Kwame Nkrumah. Beyond political freedom, Nkrumah dreamed of building a modern, self-reliant nation.
He launched ambitious projects aimed at industrialisation, job creation, and to position Ghana as a leader in Africa.
Many of these projects were interrupted or abandoned after the 1966 coup that removed him from power. Today, these projects remain reminders of bold ambitions and opportunities for revival.
1. The Black Star Line
One of Nkrumah’s earliest initiatives was the Black Star Line, Ghana’s first national shipping company. Established in 1957, it aimed to boost trade and reduce dependence on foreign vessels. Nkrumah envisioned a fleet of Ghanaian ships transporting goods across Africa and beyond.
The project, however, suffered from poor management, financial challenges, and political instability. After the 1966 coup, the Black Star Line collapsed, leaving a gap in Ghana’s maritime sector. Today, the country still relies heavily on foreign shipping, showing how Nkrumah’s foresight was ahead of its time.
2. Railway expansion
Perhaps Nkrumah’s most enduring domestic dream was a nationwide railway network. He wanted lines connecting northern and southern Ghana, linking agricultural zones to factories, and connecting mines to ports. Railways were to be the backbone of industrialisation, enabling efficient transport of goods and people.
Much of this vision remains unrealised. Expansion stalled after 1966, and the network has suffered decades of neglect.
- Juapong textile factory
- Tomato and fruit processing plants: Designed to add value to agricultural produce, but operations collapsed due to inconsistent supply and lack of technical expertise.
Modernisation efforts by successive governments, including the construction of the Tema–Mpakadan line and rehabilitation of parts of the Western Line, have only partially restored his vision. A fully integrated railway system, particularly linking northern regions, remains a work in progress.
3. Accra–Tema Industrial corridor
The Accra–Tema Motorway, constructed in the early 1960s, was intended to anchor an industrial corridor connecting factories, ports, and residential areas.
The motorway itself was completed and remains a key route, but many industrial zones along the corridor were never built, limiting the economic impact of the project.
4. Defunct factories and industrial ambitions
Through the Ghana Industrial Holding Corporation (GIHOC), Nkrumah established numerous state-owned factories to reduce imports, create jobs, and industrialise the country. Many of these factories, however, became defunct due to poor management, political changes, and economic challenges.
Some notable examples include:
- Textile factories: Aimed at making Ghana self-reliant in clothing production, but most shut down after Nkrumah’s overthrow.
- Brick, tile, and cement factories: Intended to supply building materials for rapid urbanisation; many closed or underperformed.
- Sugar and meat processing plants: Built to supply local demand and reduce imports, yet most never reached full capacity.
These defunct factories are a testament to the challenges of maintaining large-scale industrial projects in a changing political and economic environment. They also illustrate the potential that existed to make Ghana self-sufficient in manufacturing.
Meridian Hotel
The Meridian Hotel in Tema. Built in 1960 by Ghana’s first President, Osagyefo Dr. Kwame Nkrumah. One of the most sought-after hotels at the time, it was a popular location for dignitaries and tourists. The iconic hotel was so popular it inspired the famous Wulomei song Meridian.
Sadly, it has been abandoned for over two decades after it was closed down in the late 1990s. Meanwhile, residents in the area have called on the government to demolish the building if there are no plans to revamp it.
Lessons and way forward
These abandoned projects and defunct factories are not just stories of failure. They highlight Nkrumah’s bold vision and the importance of continuity in national development. Independence brought freedom, but building a self-reliant, industrialised Ghana requires sustained planning, political stability, and investment in infrastructure and human capital.
As Ghana marks its 69th Independence Day, revisiting these projects is both a reflection on history and a call to action. Reviving or modernising parts of these initiatives could strengthen infrastructure, create jobs, and make the country more competitive in the regional and global economy.
Nkrumah’s projects were not merely monuments of ambitions but blueprints for economic sovereignty. As Ghanaians, it is not just enough to remember past events leading to independence but completing and reviving works that began in 1957.
It reminds us that true nation-building—connecting the country, industrialising the economy, and asserting Ghana’s role in Africa—is an ongoing journey.
By Esinam Jemima Kuatsinu
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