Breaking: Otabil speaks on Capital Bank collapse
Founder and General Overseer of the International Central Gospel Church (ICGC), Dr Mensa Otabil, has broken his silence on the controversies in the banking sector, specifically, his role in the collapse of the Capital Bank as Board Chairman of the defunct bank. He has explained in a statement issued Tuesday that during his non-executive role as a Board Chairman of the bank, some decisions that were made turned out well while some did not turn out as well as had been anticipated. "As far as I can tell, everything was done with the best of intentions and the interest of various stakeholders in mind. "My foremost concern, as has been the case over the past year, is for the well-being of those who lost their jobs and those who may have been adversely affected in any way as a result of these developments. My heart goes out to them and to their dependents. I continue to pray for God’s guidance and sustenance as they navigate the course of their lives," he stated in the nine-point statement. He concludes in the statement, published in full below, that he will continue to cooperate with the state institutions probing the collapse of the bank. Capital Bank, along with another indigenous bank, UT Bank, collapsed in August last year due to liquidity challenges and all their assets taken over by state-owned GCB Bank. Capital Bank received GHS 610 million from the Bank of Ghana to cure its liquidity struggles, funds allegedly mismanaged, leading to its collapse. The full statement is published below. Re: Capital Bank And Related Matters Greetings! 1. I have observed with concern, the ongoing media discussions regarding developments in the Banking Sector and my role either directly or indirectly. 2. I accepted to be Board Chairman of Capital Bank in a bid to help strengthen a promising Ghanaian enterprise that had potential but also challenges. I was excited about the prospects of a young man from a disadvantaged background who was daring to create opportunities and employment. 3. My position was a non-executive role. I was therefore not involved in the day-to-day management and operations of the Bank. 4. In the course of time, some decisions made turned out well while some did not turn out as well as had been anticipated. As far as I can tell, everything was done with the best of intentions and the interest of various stakeholders in mind. 5. My foremost concern, as has been the case over the past year, is for the well-being of those who lost their jobs and those who may have been adversely affected in any way as a result of these developments. My heart goes out to them and to their dependents. I continue to pray for God’s guidance and sustenance as they navigate the course of their lives. 6. Since the takeover of the bank exactly a year ago today, various mandated state institutions have been investigating and working to arrive at a comprehensive understanding of what happened, why it happened and who was responsible for what. I have been invited by EOCO and I have submitted myself to their processes and answered all their questions faithfully. 7. For some time now, many discussion platforms have made varied references to me and to my perceived role. Some have reached out to me for clariﬁcations regarding issues that have been raised. I have preferred not to respond in the public domain, not as an admission of guilt, but out of respect for the due process and the ongoing investigations. 8. Notwithstanding some unforeseen outcomes, I remain resolute in my belief in the Ghanaian and African entrepreneurial spirit. I will therefore continue to lend my support and mentorship to inspire others who dare to dream and work towards the promise of Africa’s growth and transformation. 9. Meanwhile, as a believer in the rule of law, I will continue to cooperate with the mandated institutions of state as they complete their investigations. I am conﬁdent that in the process, the national interest and the rights of all parties involved will be protected. Shalom, peace and life to you. Signed, Pastor Mensa Otabil. 14th August, 2018. BoG statement on GCB take over of UT, Capital Bank [released last year] The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd. The Bank of Ghana has revoked the licences of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC). The main offices and branches of UT Bank and Capital Bank will be under the control of GCB bank and will be opened at 1 pm today (Monday, August 14) for normal business transactions. Customers of UT Bank and Capital Bank are now customers of GCB bank. All deposit customers will continue to have access to their funds. UT Bank and Capital Bank branches and ATMs will continue to operate as normal as GCB bank branches and ATMs. All staff in the interim will become staff of GCB bank and GCB Bank will negotiate the terms of their contract. GCB was selected amongst 3 others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio. The Bank of Ghana assures the public that all customers can continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB bank. The approval by the Bank of Ghana of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds. The Bank of Ghana reassures customers of UT Bank and Capital Bank that their money is safe and they can continue to do business at their respective branches which are now the branches of GCB Bank.