Former Bank Directors Face 26 Charges Including Stealing, Money Laundering

The much awaited prosecution of some directors and share holders of some of Ghana’s failed banks, will soon start after charges were published against some of the directors of the defunct Capital Bank, now part of GCB Ghana ltd.

The charges which are 26 in all, include stealing, abetment of crime, and money laundering, were slapped on 4 persons namely Ato Essien, Fitzgerald Odonkor, Tetteh Nettey and Kate Quartey-Papafio at an Accra High Court on Wednesday.

In a suit filed at the Accra High Court on Tuesday, the state accused Ato Essien and Tetteh Nettey of “conspiracy to steal contrary to sections 23 (1) and 124 (1) of the Criminal Offences Act, 1960 (Act 29).”

The Bank of Ghana in August 2017 revoked the license of Capital bank and UT Bank due to their insolvency, leading to a seamless takeover of the two banks by GCB Bank.

While the shareholders of the defunct Capital Bank have been sued by the receiver, Eric Nana Nipa to retrieve an amount in excess of GHc 750 million, UT Bank is being sued for monies in excess of GHc100 million.

The closure of the two banks initiated a cleansing of the local financial system.
This eventually led to the closure and consolidation of seven Ghanaian banks, and over a 100 savings and loans institutions in the country.

It is expected that more former directors, ex CEOs and former senior managers of the distressed banks and saving and loans companies will face charges in court to account for their actions.

Recommended for you