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Politics

Bank crisis: Adongo jumps to Otabil’s defence

Bolgatanga Central Member of Parliament has jumped to the defence of the Board Chair of Capital Bank, Pastor Mensa Otabil in the in the wake of the banking crisis.

Isaac Adongo said the Boulders Report which formed the basis for the criticism of the founder of the International Central Gospel Church is completely discredited.

Speaking at a forum organized by the Progressive Alliance Media Communicators, the lawmaker minced no words in shredding the financial autopsy report sponsored by the Bank of Ghana.

The Boulders Report, in part made adverse findings against directors of the UT and Capital Banks, accusing them of running down their banks.

This was after the licenses of the two banks were withdrawn in August 2017 over acute liquidity challenges.

According to the report, the Founder of Capital Bank Ato Essien used 80m cedis of depositors’ money as his "personal piggy bank".

The report further stated some ¢610m bail-out from the central bank to help Capital bank was mismanaged.

The Board Chair of the UT Bank Prince Kofi Amoabeng was also not left out of the indictment.

The report claimed Mr Amoabeng took a loan of some ¢5m from the bank without informing the board, a claim he has vehemently denied.

In a statement, he said the ¢5m was proceeds from the sale of his personal property and not a loan he contracted.

The chair of the Board of Capital Bank Pastor Otabil would rather the investigative body look into the matter and come out with its independent report.

“My position was a non-executive role. I was therefore not involved in the day-to-day management and operations of the Bank.

“In the course of time, some decisions made turned out well while some did not turn out as well as had been anticipated. As far as I can tell, everything was done with the best of intentions and the interest of various stakeholders in mind,” he said in a statement.

His comment has been met with vehement criticism from the general public some of whom accuse him of trying to absolve himself of blame.

But Albert Adongo, whose party, the National Democratic Congress has been an incurable critic of Pastor Otabil said the recent criticisms against the revered pastor are unjustified.

He challenged the Bank of Ghana to state emphatically what wrong has been done by the Board Chair of Capital Bank in approving a loan for the setting up of another Bank.

Capital Bank was said to have given out an amount of money for the setting up of Sovereign Bank.

He argued the business of banks is to give loans and collect deposit and there was nothing wrong in giving a loan to Sovereign bank.

He said there is nothing wrong in borrowing to set up a bank.

“It is not illegal to borrow money to set up a bank. You vilify people because they took a loan legitimately from another bank and you put the burden on them to have asked whether the money is coming from liquidity support?” he asked

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.