Business General

We didn’t cause GHc482m debt – Otabil

Pastor Mensa Otabil has insisted that he did not benefit from any loans or acted fraudulently as former board chairman of the defunct Capital Bank.

The head pastor of the International General Gospel Church also insists that Capital Bank’s GHc482 million debt “did not result from the negligence of directors.”

“Neither did the Board make a misrepresentation to the Bank of Ghana as regards [to the] payment of minimum capital,” his statement of defence said.

Pastor Otabil, along with 14 other shareholders were sued over the collapse of Capital Bank.

The suit was brought against the shareholders by Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers, who are receivers of the bank.

In their writ of summons, the plaintiffs said the directors of the defunct bank unlawfully approved loans and the placement of funds to themselves and related parties.

Outlining the failure of each of the 15 persons sued, the plaintiffs prayed the court to order the defunct bank’s directors to pay compensatory damages to the receivers.

They also want the bank’s former founder, William Ato Essien to pay back over GHS 468 million in shareholder loans and some GHS 108 million that was granted to him and his other companies.

But Pastor Otabil maintains that he and the other directors were diligent and acted in the best interests of the bank.

In addition, he said the shareholder loans were “sanctioned and approved by the Bank of Ghana for the special treatment of some non-performing assets of the plaintiff by apportioning them to name four shareholders of the plaintiff who were to use their future dividends over a five year period to defray the said debt.

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