BOG – Page 2 – receivership

Court ‘frees’ Defunct Capital Bank founder William Ato Essien

BOG | Matilda Akakpo | December 13, 2022 | Comment off

William Ato Essien, the founder of the defunct Capital Bank, who was standing trial for stealing GH¢192.5 million of depositors’ funds, has avoided a custodial sentence. Essien avoided prison today (December 13, 2022) after the court, presided over by Justice Eric Kyei Baffour, accepted an agreement between him (Essien) and the prosecution for Essien to pay GH¢90 million as restitution to the the state. As part of the agreement, Essien pleaded guilty to 16 counts of stealing and money laundering and was accordingly convicted. Reports indicate that the other accused persons – Fitzgerald Odonkor – a former MD of Capital Bank and Tettey Nettey, the CEO of a company said to be controlled by Essien, were acquitted and discharged after they were found not guilty. As part of the agreement, Essien who pleaded guilty to stealing GH¢192.5million of depositors’ funds, has already paid GH¢30m to the state and will pay the remaining GH¢60m in GH¢20m in three instalments by the close of 2023. The presiding judge accepted the agreement pursuant to Section 35 of the Courts Act, 1993 (Act 459), which allows accused persons standing trial for causing financial loss to the state to pay the money and possibly avoid a custodial sentence. Consequences Per the orders of the court, in the event, Essien defaults in paying the money by the exact timelines (first on April 28, 2023, second on August 31 and last on December 15, 2023) he will be sentenced to prison. Justice Kyei Baffour also ordered that by virtue of pleading guilty, Essien cannot be appointed as a director of any bank or any financial institution pursuant to the Banking and Specialised Deposit-Taking Institutions Act , 2016 (Act 930). The judge also ordered the Registrar of the court to seize the passport of Essien until the convict finished paying the money. Justice Kyei Baffour who initially rejected the agreement, accepted it today after it was explained to him that the state had already recovered GH¢101.2m of the GH¢192.5m with the remaining amount being GH¢92.5m Also, it came out that an amount of GH¢35m was repeated twice on the charge sheet, meaning Essien actually has GH¢57.5m to pay , meaning the GH¢90m being paid by him was in excess of GH¢32m, which will be interest on the amount to the state. Justice Kyei Baffour accepted the agreement after listening to submissions from a Deputy Attorney -General , Alfred Tuah Yeboah and lawyer for Essien , Thaddeus Sory.

Banking sector clean-up: Former BoG staff, UT Bank executives facing several charges

BOG | Matilda Akakpo | December 13, 2022 | Comment off

Two former officials of the Bank of Ghana, alongside three other executives of defunct UT Bank are facing different types of charges in an Accra High Court (Commercial Division) over their purported roles leading up to the collapse of the bank. According to the charge sheet filed at the High Court, former second Deputy Governor, Dr. Johnson Asiama and former Head, Banking Supervision Department, Raymond Amanfu, have been charged with willfully causing financial loss to the state. Also, Head of Treasury of the UT Bank, Catherine Johnson; former Chief Executive Officer of UT Bank, Prince Kofi Amoabeng; and Robert Kwesi Armah, General Manager of Corporate Banking of UT Bank and UT Holdings – the parent company of UT Bank, have been charged with various offenses such as dishonest appropriation of US$7million and other deposits of customers and fraudulent breach of trust, among other charges. The trial judge is His Lordship Justice Bright Mensah, a Justice of the Court of Appeal, sitting as an additional High Court judge. So far, the prosecution has called Eric Nana Nipah, the Receiver of UT Bank (in receivership), Stephen Afotey, Registrar of the High Court (Commercial Division) and Stephen Antwi-Assimeng, a former Chief Executive Officer (CEO) of the defunct UT Bank to testify on its behalf. In his testimony, the first Prosecution Witness, Eric Nana Nipah, informed the Court that several investments placed by various companies such as, SSNIT SOS Fund, Forestry Commission, ECG Staff Fund, WAICA-Re and the National Communications Authority with UT Bank were moved out to UT Holdings without proper authorization. He testified that UT Holdings is not licensed to engage in such investment activities. The total amounts invested with UT Bank but transferred to UT Holdings without proper authorization is GH¢51.3million and US$8.7million. The second Prosecution Witness, Mr. Afotey, testified that an amount of US$7 million was deposited with UT Bank on the instructions of the Court. However, this amount could not be traced when UT Bank was taken over by GCB Bank. In November, the Court heard the testimony of the third Prosecution Witness, Stephen Antwi-Assimeng, the Chief Executive Officer of UT Bank at the time of the revocation of its license. He testified that UT Bank was already on liquidity support from BoG at the time he joined the bank. Mr. Antwi-Assimeng intimated that UT Bank relied heavily on borrowing from BoG to deal with its liquidity challenges. In his testimony, Mr. Antwi-Assimeng indicated that UT Bank established letters of credit in the total sum of GH¢141million for some customers of the bank and these letters of credit were maturing in May and July of 2016. He further informed the Court that the customers did not provide funds for the Letters of Credit and neither did UT Bank have liquidity on maturity. Testifying further, Mr. Antwi-Assimeng stated that the bank had situations where a number of international lenders were calling in their loans because UT Bank had defaulted and some of the loans had reached maturity. He testified further that UT Bank was experiencing an average of GH¢40million loss of customer deposits, one of the bank’s key sources of liquidity. This, according to him, resulted in acute liquidity shortage, with UT Bank forced to pay higher interest rates to attract new depositors. Proceeding further, Mr. Antwi-Assimeng informed the Court that UT Bank, on application to BoG, received liquidity support of GH¢460million with the instruction not to use any part of the additional liquidity support for unapproved purposes. He also informed the Court that the bank also applied to BOG for an unsecured liquidity support of GH¢30million. He explained that UT Bank applied for the unsecured liquidity support because it did not have adequate securities to provide collateral for this facility. The matter has been adjourned for further hearing in mid-December this year.

Capital Bank Trial: Court Rejects Ato Essien’s GHS90M Repayment Deal with State Prosecutors

BOG | Matilda Akakpo | December 6, 2022 | Comment off

The High Court presided over by Justice Eric Kyei Baffour has rejected a settlement deal between state prosecutors and embattled founder of now-defunct Capital Bank, Ato Essien. According to the settlement arrangement submitted on Wednesday to the court, a day before the advertised judgement day, Ato Essien had agreed to change his plea to guilty and will refund GH¢90 million to the state in place of a custodial sentence if found guilty. The court could not deliver its judgement in the case on Thursday due to the new development. Justice Eric Kyei Baffour, a Justice of Appeal, sitting as an additional High Court Judge, rejected the agreement, indicating that the amount agreed to be paid was not good enough, and adjourned the case to December 13 for the parties to address the court on the legal basis of the terms of the agreement. Ato Essien and two others have been on trial for the past three years for their involvement in the collapse of Capital Bank. The prosecution had also accused Mr. Essien of misappropriating GH¢620 million liquidity support extended by the Bank of Ghana to help keep the bank afloat. The prosecution and the accused in arriving at the agreement told the court they came under section 35 of the Courts Act, 1993, Act 459 (as amended). The provision states as follows: “(1) Where a person is charged with an offence before the High Court or a Regional Tribunal, the commission of which has caused economic loss, harm or damage to the State or any State agency, the accused may inform the prosecutor whether the accused admits the offence and is willing to offer compensation or make restitution and reparation for the loss, harm or damage caused.” Justice Kyei Baffour was sceptical about the application of section 35 of the Courts Act to the present case, as he noted that monies involved belonged to depositors and shareholders of the defunct bank and not the state per se. By the proposed agreement, Mr. Essien agreed to pay GH₵90 million in total: GH₵30 million today and GH₵60 million by instalment to the state. But the court was unhappy with the arrangement. The judge also thought that the timing for the announcement of the deal was not the best, as he was ready to deliver his judgement. Background Mr. Essien is standing trial together with the former Managing Director of the Bank, Rev. Fitzgerald Odonkor, and a former Managing Director of MC Management Service, Tetteh Nettey, also owned by Mr. Ato Essien. Together, they were tried on 23 counts of criminality, including conspiracy to steal and stealing in connection with the collapse of Capital Bank in 2017. They however pleaded not guilty to the charges and maintained their innocence all throughout the trial, with Mr. Ato Essien maintaining at all material moments that he had Board approval for all actions he took. Section 35 of the Courts Act, 1993 (Act 459) (1) Where a person is charged with an offence before the High Court or a Regional Tribunal, the commission of which has caused economic loss, harm or damage to the State or any State agency, the accused may inform the prosecutor whether the accused admits the offence and is willing to offer compensation or make restitution and reparation for the loss, harm or damage caused. (2) Where an accused makes an offer of compensation or restitution and reparation, the prosecutor shall consider if the offer is acceptable to the prosecution. (3) If the offer is not acceptable to the prosecution the case before the Court shall proceed. (4) If the offer is acceptable to the prosecution, the prosecutor shall in the presence of the accused, inform the Court which shall consider if the offer of compensation or restitution and reparation is satisfactory. (5) Where the Court considers the offer to be satisfactory, the Court shall accept a plea of guilty from the accused and convict the accused on his own plea, and in lieu of passing sentence on the accused, make an order for the accused to pay compensation or make restitution and reparation. (6) An order of the Court under subsection (5) shall be subject to such conditions as the Court may direct. (7) Where a person convicted under this section defaults in the payment of any money required of the person under this section or fails to fulfil any condition imposed by the Court under subsection (6), any amount outstanding shall become due and payable and upon failure to make the payment, the Court shall proceed to pass a custodial sentence on the accused. [As substituted by the Courts (Amendment) Act, 2002 (Act 620), s.4]

Sale of Landed Properties, Vehicles, Generators and Chattels

BOG | 2019@@2019 | September 30, 2022 | Comment off

Pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act
930) (“the Act”), Bank of Ghana (“BoG”) on 31 May 2019 and 16 August 2019

Sale of Landed Properties

BOG | 2019@@2019 | July 26, 2022 | Comment off

Pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) (“the Act”), Bank of Ghana (“BoG”) on 31 May 2019 and 16 August 2019 revoked

REVOCATION OF GN BANK LICENSE: COURT OF APPEAL UPHOLDS BOG APPLICATION

BOG | Matilda Akakpo | June 2, 2022 | Comment off

The Court of Appeal has by a unanimous decision upheld the Bank of Ghana’s application that the suit by Dr. Papa Kwesi Nduom and others against the Bank of Ghana’s revocation of the licence of GN Bank be referred to Arbitration. The Court today June 2nd, 2022, held that per section 141 of the Banks and Specialised Deposit-Taking Institutions Act, 2016, Act 930, the forum for such a challenge is arbitration and not the court. The Court held further that Dr Nduom and the other applicants had masqueraded their challenge to the decision of Bank of Ghana as a human rights application. The Court therefore stayed the proceedings at the High Court and referred the matter to the Ghana Arbitration Centre. The Court of Appeal panel of three Judges led by Justice Henry Coffie, and comprising Justice Eric Baah and Justice Novisi Ayine as members of the panel looked at the case.

COURT DISMISSES ATO ESSIEN’S APPLICATION FOR STAY OF PROCEEDINGS

BOG | Matilda Akakpo | April 28, 2022 | Comment off

The High court has dismissed William Ato Essien’s application for a stay of proceedings pending the determination of an appeal against one of its rulings. Justice Eric Kyei Baffour of the Court of Appeal, who sits as an additional High Court Judge, held that “the prospect of the success of the interlocutory appeal is very bleak” as such he had “no hesitation in dismissing this application”. Mr. Ato Essien’s lawyers told the Court that they had appealed against its admission of unsigned documents (exhibits 24, 24A, 24B, and 27) into evidence against their objections. After that, they asked the Court to temporarily halt the trial to enable them to pursue the appeal at the Court of Appeal. Arguing for Mr. Ato Essien in court on Thursday, 28 April 2022 Baffour Gyawu Bonsu Ashia, said their appeal hinged on three grounds “in relation to the unsigned documents which were admitted into evidence”. He told the Court that “our appeal has a real chance of success on the basis that exhibits 24, 24A 24B, and 27 were admitted in breach of section 138 of the Evidence Act.” The lawyer also assured the Court that a temporary halt of proceedings would in no way delay the trial. More concerning for William Ato Essien’s lawyers were attempts by the 3rd Accused (Fitzgerald Odonkor) to compel the author of the unsigned documents to appear and testify in Court. “To allow the said witness to enter the box and to corroborate the evidence of the 3rd accused person” the lawyers argued, “will be injurious to the defense of the 1st accused” (William Ato Essien). Though the other parties were not on the record opposed to the application, the Court went on to consider it on its merits. In the reasoning of the Court, the fact of non-opposition of an application by way of an affidavit in opposition is not an indication that an adverse party was not opposed to the application. “All that it means is that the adverse party was not in the position to assist the Court in coming to a conclusion one way or the other.” Quoting a plethora of decisions, Justice Eric Kyei Baffour concluded that “recent authorities from the Supreme Court demonstrate that the admissibility of an unsigned document per se is not erroneous, but depends on the circumstances of the case.” He held that “in this instance, the latest authority on the admissibility of evidence has completely appended the rule in Amidu (no. 3) v. Waterville and Woyome (no. 2), and Provencal v. Zwennes The case has been adjourned to May 5, 2022, for continuation

PRESS RELEASE BY THE RECEIVER, ERIC NANA NIPAH (PUBLIC ANNOUNCEMENT – SCAM DISCLAIMER)

BOG | Matilda Akakpo | March 24, 2022 | Comment off

IN THE MATTER OF THE BANKS AND SPECIALISED DEPOSIT-TAKING INSTITUTIONS ACT, 2016 (ACT 930) AND IN THE MATTER OF THE RECEIVERSHIPS OF THE 347 MICROFINANCE COMPANIES (“MFCs”) AND THE 23 SAVINGS & LOANS AND FINANCE HOUSE COMPANIES (“S&LS”) PRESS RELEASE BY THE RECEIVER, ERIC NANA NIPAH Accra 24 March 2022 My attention has been drawn to information circulating on social media and other public platforms by individuals and companies claiming that indebtedness to any of the defunct Microfinance Institutions and Savings and Loans Companies (MFCs/S&Ls) will be written off, if bribes and kickbacks are paid to me or to any of my associates and debt recovery agents/lawyers. I would like to inform the general public that this is not true and that the persons or companies involved are fraudsters and must be reported to the Ghana Police or to my office on 0550000966/ 0242439441 I have also noticed that a fake loans company by name FCMB Fast Ghana Loans has emerged and is using my picture as its profile picture, assuring innocent and unsuspecting customers of its Loans Service. I am by this release categorically disassociating myself from that social media page and informing the public that I have formally referred the matter to the Ghana Police Service. I am also by this press release cautioning the general public to desist from entertaining or doing business with any unscrupulous persons or companies who want to use the receivership process to undertake any fraudulent activity. Please note that all customers can settle their outstanding obligations to the defunct companies through the respective MTN MoMo numbers and/or receivership bank accounts listed on the receivership website (www.ghreceiverships.com). Borrowers may also make payments to the Receiver’s authorised representatives/agents. If unsure of these authorised persons/ agents, please call the Receivership Call Centre on 0242439441 for confirmation or visit the Receiver’s website to access the list of the Loan Recovery Agents, authorised by the Receiver to recover loans from borrowers of the defunct companies. Borrowers are to note that, the Receiver will pursue all recalcitrant defaulters through all available means as permitted by the Act including, but not limited to, legal actions and publishing names of recalcitrant defaulters in the national dailies. For further information on Loan Repayments, please call 0242439441/0302960208 or send a mail to: · projectdomino.loans@gmail.com for (Microfinance Companies). · projectbluemoonloans@gmail.com for (Savings and Loans Institutions). You may also write to the following address: The Receiver 54 Olusegun Obasanjo High Way Opposite Accra Girls Senior High School PMB CT42, Cantonments Accra, Ghana www.ghreceiverships.com SGD ERIC NANA NIPAH RECEIVER