Chief State Attorney, Evelyn Keelson, has alleged that the founder of defunct Capital Bank, William Ato Essien, and businessman, Dr Tetteh Nettey, dishonestly took ¢130 million from Capital Bank.
This money, she claims, was used to set up the defunct Sovereign Bank.
Together with former Managing Director of Capital Bank Fitzgerald Odorkor, the two have been slapped with 26 charges, including stealing various sums above ¢260 million.
The state alleges that their actions led to the collapse of the bank.
Documents filed in court state that between June 2015 and November 2016, the Bank of Ghana (BOG) provided a total sum of ¢620 million as liquidity support to Capital Bank to meet its capital adequacy ratio and service its maturing debt obligations.
In October 2015, Mr Essien is alleged to have been aided by Fitzgerald Odonkor to transfer a sum of GHS 120 million of the liquidity support amount to All Time Capital Limited (All Time), an investment management and advisory firm.
The three individuals are said to have caused the transfer of ¢100 million of the ¢120million
to MC Management Services, a company that had Mr Nettey as its managing Director.
The remaining ¢20 million of the amount is said to have been transferred to Pronto Construction and Supplies Limited (Pronto Construction).
“The total amount of ¢130 million, which was represented as initial capital of Sovereign Bank, was eventually channelled by the 1st and 2nd accused persons into Capital Africa Group, the first accused person’s company, less bank charges.
“The monies transferred into Capital Africa Group was eventually dissipated by the 1st and 2nd accused persons.”
Mrs Keelson, on Thursday, cross-examined Dr Tetteh Nettey. She accused him of being part of the plot to dishonestly take money from Capital bank to set up another bank.
“I am putting it to you that, together with the first accused person (Mr Essien), you dishonestly took a total of ¢130 million from Capital Bank and used same as stated capital for Sovereign Bank,” she stated.
Dr Nettey disagreed. He explained as follows.
“I did not, together with the first accused, take 4130 million from Capital Bank as stated capital for Sovereign Bank. The shareholders of Sovereign Bank told me and took steps to prove to me that the monies were theirs.
“And like I said, the first sets of monies that came to Mc management came in the form of cheques and bank swifts from Nordia Capital through Ecobank. And there was no way of knowing the monies were from Capital Bank. “
Mrs Keelson pressed on, insisting that Dr Nettey was well aware that the said shareholders, including himself, did not provide any money to set up Sovereign Bank. She dated that documents made available to the court clearly show that Dr Nettey was in the know about these transactions.
Dr Nettey disagreed yet again. He insisted that he did not provide any money as a shareholder in his case because he held shares on behalf of Mr Essien
He continued that he and Mr Essien signed documents confirming that he held the shares on his behalf.
He concluded that despite demanding copies of these documents from Mr Essien on many occasions, he never received his copy.
Trial Judge Eric Kyei Baffuor had some questions.
“You did say that you held the shares in Sovereign Bank as a Trustee for A1 and that you signed some agreement and you were not given the papers.
“You don’t think this was material enough that when he was in the box, you should have confronted him. Because as matters stand, don’t you think it will be your word against it?”
“I have proof that I asked for it severally. I signed it in his office. His personal assistant at the time was Prince Aggrey, and he gave them to him to run copies, and I did not see them again”.
The case has been adjourned to April 7, 2022.