The collapse of Capital Bank and calls for Mensa Otabil's prosecution

The collapse of Capital Bank and calls for Mensa Otabil's prosecution

- The collapse of Capital Bank has seen calls for Mensa Otabil to be prosecuted

- Mensa Otabil has stayed quiet over the matter as supporters and congregants express their solidarity

- The Bank of Ghana has revealed telling reports on how managers of and Capital Bank caused the collapse of their banks

Seven local banks have all collapsed in the past few months. Recent audit reports from the Bank of Ghana has shown that one of the major issues that collapsed these banks was poor decision making on the part of managers.

One of the defunct banks which attracted much controversy is Capital Bank of which Pastor Mensa Otabil was the board chairman.

Mensa Otabil's wrongdoing so far has been his inability to ensure due diligence on a loan he granted some key players in the collapse of Capital Bank.

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“Funds raised through the commercial paper issuance by MC Management Services Limited and Breitling Services were used as capitalization for the establishment of the Sovereign Bank Limited," parts of a BoG audit report revealed.

The Bank of Ghana in its report spotted some red flags including some GHc 27.5 million used for business promotion and handled by a board member; transfers to IFS amounting to GHc 23.9 million, transfers to Nordea Capital amounting to GHc 65 million, and transfers to Alltime Capital amounting to GHc 130 million.

The collapse of Capital Bank and calls for Mensa Otabil's prosecution

Mensa Otabil ( Third person from the left) with officials of the defunct capital bank (Photo supplied)

Concerning Alltime Capital, the report noted that “Mr. Ato Essien stated that the placement of GHc 130m with Alltime Capital was strategic and funds would be paid back by March 2016.”

In all this, the General Overseer of the ICGC, Dr. Mensa Otabil assured management that he would ensure the funds were returned by March 2016.

After these damning reports, there have been calls for heads to roll. In fact, the Economic and Organised Crime Office (EOCO) has mounted investigations into the matter.

The question that remains unanswered is if Mensa Otabil could face the full rigors of the law should he be found guilty of financial malfeasance.

Among the expression of dissatisfaction over the telling reports from the Bank of Ghana has been a general call for Mensa Otabil to be prosecuted. According to the Member of Parliament for Kumbungu Constituency, Ras Mubarak, Mensa Otabil must not be left out of any prosecution.

“Anyone, including @MensaOtabil who’s responsible for the current banking crisis must face the music. You can’t use the people’s money anyhow. Let’s see if this administration has the spine to go after the rich and powerful,” he posted on his Twitter handle.

Despite calls for his prosecution, Mensa Otabil seemed to have gained some popularity in social media from supporters and congregants of his church who have expressed their solidarity.

The "I stand with Mensa Otabil" tagline has literally swamped social media as supporters including popular journalists and media personalities.

So far, the presbytery of the International Central Gospel Church (ICGC), has also issued a press statement hailing Mensa Otabil as a man of integrity.

READ ALSO: Defunct Capital Bank manager now grills pork for a living

In the midst of this controversy, Mensa Otabil has remained silent. His decision not to comment on the issue can be seen as strategic especially when every word he utters might be used against him in a court of law.

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Source: Yen.com.gh

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