The Founder and Chief Executive Officer (CEO) of Capital Bank, which is in receivership, William Ato Essien, has narrowly escaped custodial sentence by the Commercial Division of the Accra High Court.
The custodial sentence was suspended by the High Court, presided over by Court of Appeal Justice, sitting as additional Judge of the High Court, Eric Kyei Baffour yesterday.
This was after the embattled Ato Essien had gone into agreement with the state to settle GH¢90 million it owed to the Republic of Ghana.
However, the court has ordered Mr Essien to refund GH¢60 million by the end of year 2023 to the state, in three tranches, in default the case would be recalled for him to be sentenced.
The court made the order because it was informed that Mr Essien had already paid GH¢30 million, leaving an outstanding debt of GH¢60 million.
The dates given to the former Capital Bank CEO to pay the amount were April 28, August 31 and December 15, 2023 and anything short of it would spell doom for him.
The judgement follows Ato Essien changing his plea from not guilty to guilty, amidst shedding of tears.
A plea of guilt was re-entered for him on 16 out of 23 counts of conspiracy to steal, stealing and money laundering by the court.
The court was persuaded to accept Ato Essien’s terms of settlement, due to a spirited argument mounted by the Deputy Attorney-General and Minister of Justice, Alfred Tuah Yeboah and Counsel for the accused, Thaddeus Sory, on Section 35 of the Court Act, which allows noncustodial sentence.
Meanwhile, His Lordship had previously held a position that Mr. Essien must pay the money at the prevailing value, taking into consideration the current exchange rate and also interest.
Ato Essien’s guilt covers misappropriation of GH¢192.5 million, which was part of GH¢620 million liquidity support from the Bank of Ghana to Capital Bank.
GH¢100 million out of GH¢192.5 was transferred from Capital Bank to Capital African Group for the purchase of shares in Capital Bank, in two tranches – GH¢65 million and GH¢35 million.
Out of the amount in contention, GH¢20 million was transferred through Sovereign Bank through Promoto Construction Company to purchase shares in Capital Bank.
Although the GH¢100 million shares had been retained by the state, as the capital Bank had been turned into CBG, Ato Essien had in his possession GH¢92.5 million.
However, the defunct bank CEO paid GH¢1.3 million to the Economic and Organised Crime Office (EOCO), with GH¢90.7 million remaining.
Mr Sory informed the court that GH¢35 million of the amount was double accounting, therefore, the actual debt owed by his client was GH¢52million, but for the sake of the restitution, they would pay GH¢90 million.
The court has also barred him from holding any key position in any financial institution in the country.
Acquitted and dischargedÂ
Nevertheless, the court acquitted and discharged two persons –Tettey Nettey and Reverend Fitzgerald Odonkoh – who were charged alongside Ato Essien for conspiracy and abetment to steal.
Reverend Fitzgerald Odonkoh was the Managing Director of Capital Bank while Tettey Nettey was the Managing Director of M&C Management, which was also owned by Ato Essien.
The court was convinced that the two acquitted gentleman did not author letter for the purchase of commercial paper by the institutions that they headed.
There were instances where the court found out that the signatures on the exhibition before it were fabricated as well as letterhead of M&C Management.
