A 2014 memo written by then-CEO of Capital Bank, John Kofi Mensah, in August of that year, indicates that the financial institution’s imminent collapse was long foreseen.
Mr Mensah warned in the memo which was first published by the Insight newspaper that unless the bank acted fast, things could get out of hand since they were sitting on a “time bomb”.
The memo read in part: “I regret to mention that unless we act ourselves, and so with all the promptitude that it deserves, things may go out of hand, including the possibility that the Bank of Ghana may step in, by which time it will be too late for us to make excuses, with all of us risking sanctions.”
The current Managing Director of the Agricultural Development Bank added in the memo that he would interpret the failure of the bank to act on his warning as a vote of no confidence in him.
“The Board’s acceptance or otherwise of my proposals would go a long way to assist my interpretation of the Board’s willingness to share in my vision for the bank and its customers at large.
“I will certainly interpret that as a vote of no confidence in my ability to steer the bank to its destination with your respective backing and cooperation.”
The memo resurfaced following GCB Bank’s takeover of transfers of all deposits and selected assets of Capital Bank and UT Bank after a purchase agreement as the two banks were struggling to operate financially.
Source:Ghana/AccraFM.com
