Saturday, 11 July

Bank collapse: Kofi Amoabeng arrested; Beige Bank CEO Nyinaku remanded

Prince Amoabeng

The founder of the now-defunct UT Bank and Chairman of UT Group of Companies, Mr Prince Kofi Amoabeng, has been arrested.

His arrest is believed to be in connection with the collapse of UT Bank on 7 August 2017, after the Bank of Ghana declared it insolvent.

Mr Amoabeng, according to sources, was picked up in his office in Accra this morning and sent to the Circuit Court Four.

He, together with many other CEOs, are being prosecuted by the state in connection with the collapse of some nine local banks.

Already, the former CEO and founder of Capital Bank, Mr William Ato Essien, is being prosecuted for 26 charges including stealing of various sums in excess of GHS260 million.

Meanwhile, the founder and former CEO of The Beige Bank, Mr Michael Nyinaku, has been remanded in police custody by the court for one week.

His bail application was thrown out by the court.

Also, Mr William Ato Essien, the founder and former CEO of another defunct bank, Capital Bank, as well as his former MD, Rev. Fitzgerald Odonkor, and two other persons; Dr Tettey Nettey, the Managing Director of MC Management Services, a company said to be owned by Mr Essien, and Kate Quartey-Papafio, a businesswoman and Managing Director of Reroy Cables Company Limited, are also being prosecuted.

They have been charged by the state with 26 offences for their role in the collapse of the bank in 2017.

The charges include conspiracy to steal. Mr Essien and Tettey Nettey allegedly acted together between October and November 2015 in Accra to steal GHS100 million belonging to Capital Bank. 

Judgement is expected to be delivered by the High Court in respect of the Capital Bank case in February 2020.