William Ato Essien is the founder of the defunct Capital Bank
Reverend Fitzgerald Odonkor, former Managing Director of Capital Bank, has denied that he personally approved the payment of business promotion sum to William Ato Essien, ex-Chief Executive officer of Capital Bank, after securing liquidity support of GHS620 million from Bank of Ghana.
Answering questions under cross-examination by Chief State Attorney Marina Appiah Opare, Rev. Odonkor said the practice of payment for Business promotion sum was a norm in the banking practice.
However, he said the practice was outlawed in 2019 in the banking sector.
Rev. Odonkor was answering questions in the GHS620 Million Capital Bank scandal before an Accra High Court on Thursday.
He is standing trial with William Ato Essien, former CEO of defunct Capital Bank, and Tetteh Nettey of MC Management Service, a company owned by Essien.
Question: You knew all along that the money (Business promotion) was for the benefit of Essien
Answer: No, My Lord I deny this emphatically.
Question: You will agree with me that payments of Business Promotions were not part of the conditions for the grant of liquidity support by the Bank of Ghana?
Answer: Payment of Business Promotion was a practice in the banking sector until it was outlawed in 2019.
Question: The Board Chairman denied giving approval to payment of Business promotion to Essien (first accused person) on phone
Answer: I am not aware of any such denial. Additionally, at the various meetings at which references were made to the payments of business promotion in the presence of the Chair, he did not deny such approval.
Question: You said that Capital Bank could not secure the liquidity support from the Bank of Ghana, so Essien (first accused person) arranged for the bank?
Answer: Yes, my Lord.
Question: Capital Bank wrote three different letters to the Bank of Ghana applying for liquidity support. Is that correct?
Answer: Yes, my Lord
Question: When you applied for the liquidity support your expectation was that Bank of Ghana will favourably grant your request?
Answer: Yes, my Lord.
Question: I am putting it to you that the first accused person (Essien) did not arrange for the liquidity support?
Answer: No, My Lord. Essien was the one who arranged for the support, and he advised management to put in the request.
Question: In your evidence in chief, you said there was a sub-committee that met regularly to deliberate on the activities of the bank.
Answer: Yes, my Lord
Question: This sub-committee was not part of the Management of the bank?
Answer: The subcommittee represented the interest of the board and management.
Question: The decision to pay business promotion to Essien was approved by Capital bank at its meetings
Answer: Yes, my Lord.
Question: I am putting it to you that there were no board meetings approving the payment of Business promotion to Essien.
Answer: No, my Lord the Board approved all those payments.
Question: That is why you could not provide a single board minute on the payment of Business Promotion to Essien.
Answer: When we refer to meetings held on October 16, 2016 and April 4, 2016, these approvals were discussed.
Question: None of the minutes of meetings that you attached to your witness statement stated the approval of payments of Business promotion.
Answer: I did not by my own self approved any business promotion payments
Question: Without your approval for the payments of Business promotion, Essien could not make those payments.
Answer: No, I act on behalf of the board and everyone who has his or signature on this memo is clothed with authority for payment.
Question: You gave authority to the treasury department to raise various memos for the payment of Business promotion to Essien.
Answer: I acted on behalf of the board. The treasury department of the bank takes full responsibility for its action.
Hearing continues on July 21.
Accused persons are standing trial for allegedly conniving and stealing GHC620 millions liquidity support offered by Bank of Ghana to defunct Capital bank.
They have denied the charges and have been admitted to bail.