Ato Essien to pay GH₵32.5m as reparation, restitution and interest

Reports indicate that former Chief Executive Officer (CEO) of defunct Capital Bank William Ato Essien has agreed to pay GH₵32.5 million as reparation, interest and restitution on GH₵57.5 million.

GH₵90m is principal plus reparation, restitution and interest

This will bring the total payment of principal as well as reparation, restitution and interest to GH₵90 million.

Details of the GH₵90m

The GH₵90 million consists of GH₵27.5 million allocated to business promotion, GH₵30 million which prosecution said could not be accounted for and GH₵32.5 million as reparation, restitution and interest.

The 3 people on trial

Essien is standing trial with Rev. Fitzgerald Odonkor, a former Managing Director (MD) of Capital bank and Tettey Nettey, MD of MC Management Services, a company allegedly owned by Essien.

GH₵620m BoG liquidity support

The accused persons were said to have misappropriated GH₵620 million liquidity support offered by the Bank of Ghana (BoG) to Capital Bank.

BoG and the Receiver are said to have recovered a large chunk of the money with GH₵57.5 million being the outstanding amount yet to be recovered.

GH₵32.5m for reparation, restitution and interest

After three years of trial the Attorney General’s Department agreed settlement in which Essien who took advantage of Section 35 of Act 459 of the Courts Act, which relates to restitution and reparation is to pay GH₵32.5 million as reparation, restitution and interest to bring the total amount to be paid to GH₵90 million.

Essien proposed to pay GH₵21m

Essien proposed to pay GH₵21 million before November 12, 2022.

GH₵69m to be paid in three equal instalments half yearly.

The remaining GH₵69 million is to be paid in three equal instalments half yearly from the date of first payment.

Essien has paid GH₵30m

As of today, the former CEO of Capital Bank is said to have paid GH₵30 million with a balance of GH₵60 million to be paid in three equal instalments half yearly from the date of first payment.

AG rejects proposal from Essien’s lawyers

Per court documents dated November 4, 2021, Lawyers for Essien informed the court that they have submitted proposals to the Attorney General’s Department which was rejected.

Essien’s lawyers accept proposal from AG

However, the Attorney General’s Department presented a counter proposal which Essien and his lawyers received in June 2020.

According to the Attorney General’s Department, Essien and his lawyers accepted the proposal 100% which paved way for negotiations.

Judge aware of proposal

Details of court documents dated November 4, 2021, Justice Eric Kyei Baffour, a Court of Appeal Judge sitting with additional responsibility as a High Court Judge noted an attempt by Essien to take advantage of Section 35 of Act 459 of the Courts Act, which relates to restitution and reparation.

Judge grants request for negotiations

Per the documents, the judge added that the Court has no hesitation at all in granting the prayer for more time for the parties to continue their negotiations.

Judge adjourns judgement

In spite of this approval, Justice Baffour who was expected to deliver its judgement on Thursday December 1, 2022 adjourned judgement to December 13, saying Registrar of the Court had drawn his attention to the terms of settlement between Essien and the Republic.

Judgement fixed for December 13

The trial Judge, therefore asked the state and Essien’s lawyers to address him properly on the terms of the settlement before December 13.

Source: norvanreport