Former Chief Executive Officer of defunct the Capital Bank, Ato Essien, has been handed a 15-year prison sentence with hard labour.
This comes after his failure to fully pay an amount of GH¢90 million that he had agreed to pay back to the state after plea bargain.
Despite being given several opportunities since December 2022, Essien was unable to meet the payment obligations.
Essien had pleaded guilty to 16 counts of stealing, money laundering, and conspiracy to steal in relation to the collapse of Capital Bank.
In an attempt to mitigate his sentence, he entered a plea bargain under section 35(7) of the courts ACT 459.
As part of this agreement, Essien was expected to pay GH¢90 million, of which he initially paid GH¢30 million on December 13.
The remaining GH¢60 million was to be paid in three equal installments throughout 2023: GH¢20 million by April 28, another GH¢20 million by August 31, and the final GH¢20 million by December 15.
However, Essien failed to meet the payment deadline on April 28, resulting in the state filing an application on May 2, 2023, to impose a custodial sentence on him.
Initially, the presiding judge, Justice Eric Kyei Baffour, granted Essien an additional six months to make the outstanding payments.
Despite the extension, Essien only managed to pay GH¢7 million between January and October 12, leaving GH¢53 million still owed. This led the judge to allow the state’s application for a custodial sentence.
After hearing the application, the judge sentenced Ato Essien to 15years in prison. This news has sent shockwaves through the financial sector, as Essien’s role in the collapse of Capital Bank has been a significant concern for regulators and investors alike.
With this verdict, it remains to be seen what further actions will be taken to address the fallout from this case.
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