The former Managing Director (MD) of defunct Capital Bank, Fitzgerald Odonkoh has disclosed that the board chairman of the bank gave approval of GH₵29 million business promotional to William Ato Essien through a phone call.

Despite financial institutions dealing strictly with written records, William Ato Essien, founder and Chief Executive Officer (CEO) of the bank, was said to have verbally requested the amount and the same was also approved orally.

The MD said the GH₵29 million business promotional money was part of GH₵620 million liquidity support from the Bank of Ghana (BoG) to the Capital Bank.

Rev Odonkoh told the Commercial Court ‘7’ presided by a Court of Appeal judge, Justice Eric Kyei Baffour on Thursday 14^th July 2022, while being cross-examined by the state prosecution that Mr. Essien was paid the amount in tranches.

The MD is being tried as the third accused (A3) together with Ato Essien (A1) and another, Tetteh Nettey (A2), for some 23 criminal charges including stealing and money laundering.       

The prosecution refuted the claim and indicated that the board chairman had denied ever giving such approval but A3 said he was not aware.  

Q. I am putting it to you that it was not the board that approved the payment? 

A. I have stated clearly in my witness statement that this payment was made with the approval of the board. 

Q. You said in your statement that the first accused made a verbal request for the payment of 19 million to him, as a business promotion for Nii Ashie Kotey of Ghana… and you said you informed the board chairman on phone? 

A. Yes. 

Q.  You said the board chair gave his approval for the GH₵29 million to be given to the first accused person?

A. Yes. 

Q. So you mean the board chairman’s approval was given to you on phone? 

A. Yes. 

Q. And you also said that based on this approval you as MD also approved the payment of business promotion to the first accused person? 

A. Yes. 

Q. You actually repeated this on your charge statement that the business promotion payment was authorised by the board chairman? 

A. Yes. 

Q. And you are aware that the board chairman alone does not constitute the board of capital bank?

A. Yes. 

Q. So he on his own could not give approval on behalf of the bank? 

A. As the managing director, I have direct reporting to the board through the board chairman. 

Q. I am putting it to you that the board chairman has denied giving approval for the payment of business promotion to the first accused person? 

A. I am not aware of any such denial. Additionally, at the various meetings at which references were made to the payment of this business promotion in the presence of the board chairman he did not deny such approval. 

Q. It was prepared for the signature of the board chairman and A1? 

A. Yes. 

Q. The board chairman not sign this memo? 

A. I have indicated that the vice chairman signed on behalf of the board chairman. 

Q. So the first accused and vice chairman signed the memo to authorize the placement of GH₵100 million with All Time capital?

A. Yes