How Capital Bank Blew GH¢620m; The Inside Story
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It has emerged that Capital Bank collapsed because the bank’s major shareholder and promoter, William Ato Essien, flouted all banking and risk management rules by treating depositors’ funds and public funds as his personal cash.
According to a report by Bank of Ghana (BoG) investigative team, Ato Essien, who allegedly floated two universal banks but all have gone under due to insolvency, used depositors’ funds totaling GH¢80 million to invest in business ventures he has controlling shares such as Ghana-Ocean Spring Mineral Water, Brietling Services, Gye Nyame Realty Limited, Capital and More Co. Ltd, Accent Financial Services Ltd., ESICH Life Assurance Ltd., and Capital Africa Group.
Most of the companies have gone under due to the collapse of Capital Bank.
He also invested in other companies affiliated to him in Zimbabwe, namely First Capital Plus LLC, Gye Nyame Resources LLC and Bill Minerals LLC, while in South Africa, he invested in the Essien Swiss International Capital Holdings (ESICH).
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Additionally, the Capital Bank boss was said to have invested in other connected entities, namely Nordea Capital, Commerz Savings and Loans and Sovereign Bank Limited, which licence was revoked recently.
It’s believed that he has interest in those companies except that his name was missing in directors’ list.
Those entities have denied any connection with him.
