There may be an instance of fraud in the suspected misuse of liquidity support given Capital Bank by the Bank of Ghana (BoG), according to an investigative report sighted by Citi News.
The report noted that the then-Capital Bank CEO, Rev. Fitzgerald Odonkor may have had his signature forged in the authorization of certain deals related to the GHc 610 million liquidity support to the doomed bank.
The management of the Bank, with the approval of the Board Chair, diverted some of the BoG support or other uses.
Some of that money was presented as capital to set up another collapsed bank, Sovereign Bank.
Among the flagged transactions were GHc 27.5 million used for business promotion and handled by a board member; transfers to IFS amounting to GHc 23.9 million, transfers to Nordea Capital amounting to GHc 65 million, and transfers to Alltime Capital, amounting to GHc 130 million.
Nordea Capital was also reported to have received GHc 65 million from Capital Bank, but it denied receiving the money.
“[Nordea Capital] indicated in two letters to the transaction advisors dated 13th and 28th December 2017 that it had acted as arranger for the issuance of commercial paper to the bank from MC Management services (GHs30m) and Breitling Services (GHs35m) on the instructions of the CEO, Rev. Fitzgerald Odonkor.”
But Rev. Odonkor denied having signed or authorized any of the commercial paper transaction arranged by either Alltime Capital or Nordea Capital, according to the report.
“He subsequently sent a copy to the transaction advisors of an email dated December 14, 2017, to the Board Chairman, Dr. Mensah Otabil and majority shareholder, Mr. Ato Essien,” the report said.
A section of the email from Rev Odonkor stated:
“Please, my attention has been drawn to document purported to have been signed by me in respect of commercial paper for GH¢100 million issued to MC Management Services through Alltime Capital. Please, I haven’t signed for any such commercial paper issue and do not know the said company so will be grateful if you could help resolve this issue.”
The report added that “the situation requires further investigations if the signature on the commercial paper proves not to belong to Rev. Fitzgerald Odonkor.”