- The former CEO, John Kofi Mensah cited a number of factors that were mitigating against the bank's progress
- He went ahead to suggest solutions to the board for immediate action
It has emerged that the former Chief Executive Officer (CEO) of Capital Bank, John Kofi Mensah informed the board of directors of the looming financial danger the bank was racing towards.
A memo that has found its way into the public domain indicated that the bank was having difficulty in meeting its executing its responsibilities of behalf of clients.
The memo, which was addressed to the board, listed a number of reasons for the situation in which the bank found itself in the year 2014.
It appeared to be a reminder of the constant words of caution from the CEO to the board.
Amongst the factors accounting for the ruin of the bank are mismanagement of funds, suggested policies that remained on paper, issues of shareholder credibility, amongst other factors.
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The then CEO went ahead to suggest a few solutions, key amongst them being shares of shareholders to be held in trust for them and a well – planned capitalization of the bank, in the light of the fact that deposits with sister banks were not backed by actual liquidity.
He again suggested an immediate implementation of decisions reached at the board level as well as a full disclosure of liability, whether actual or potentially created by a shareholder.
He did not end there; he warned of a potential case of the central bank stepping in; a time at which excuses may do the bank little good.
He concluded by informing the board of the dire nature of the circumstances the bank found itself in, as well as his next line of action if the board failed to take the recommendations serious.
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