15 year jail term for Ato Essien not a justification for bank collapse – Prof Gatsi
Reacting to the 15 year jail sentence handed to Ato Essien, the embattled CEO of defunct Capital Bank, Finance Lecturer at the University of Cape Coast Business School, Professor John Gatsi has stated that, the punishment meted out to Mr Essien for the crime is not a justification for the collapse of the bank.
According to him, the 15 year jail term maybe justice for the bank as officers must show fidelity to the bank within the framework of their fiduciary duties.
Taking to his official Facebook page, Prof Gatsi argued that the regulator (Bank of Ghana) has a special duty to protect a bank which suffered from a crime against it by an officer to experience perpetual life.
Further stating that, the bank (Capital Bank) deserves to live, as the bank has separate legal entity distinct from the officer (Ato Essien).
“The punishment for the crime is not justification for the collapse of the bank. It maybe Justice to the bank as officers must show fidelity to the bank within the framework of their fiduciary duties. The regulator has a special duty to protect a bank which suffered from a crime against it by an officer to experience perpetual life. Simply , the bank deserves to live, the bank has separate legal entity distinct from the officer,” he wrote.
William Ato Essien, the founder of the now-defunct Capital Bank, has been handed a 15-year prison sentence by an Accra High Court.
His conviction is related to the embezzlement of over GH¢90 million in liquidity support provided by the Bank of Ghana to Capital Bank.
Despite an opportunity to repay the state, Mr. Essien failed to fully settle the amount.
Previously, in December 2022, he made an initial payment of ¢30 million and was supposed to pay ¢20 million as the first installment of the remaining ¢60 million by April 28, 2023.
However, he only managed to pay ¢5 million. Despite being given until July 4 to liquidate his assets and pay the state ¢55 million, he failed to meet this deadline.
The state subsequently requested a custodial sentence in accordance with the agreement terms.
Justice Eric Kyei Baffour deferred the hearing of this application at the request of the convict’s lawyer.
This legal action follows the collapse of Capital Bank.
