Capital Bank Sues CDH Over GH¢100m Debt

Defunct Capital Bank appears to be making strenuous efforts to recover its assets by suing defaulters.

The joint Receivers of the bank have dragged CHD Financial Holdings Limited and CDH Savings and Loans Company Limited before an Accra High Court for failing to pay mature investments in the companies which is in excess of  GH¢100 million.

The plaintiffs, in their statement of claim, averred that the defunct bank made investments in the two entities which have since matured.

They are therefore seeking an order for the two to pay an amount of GH¢109, 390,634.70, as well as interest accrued on the investments.

The Receivers are not happy with what they termed breach of contract on the part of the defendants and therefore want an order “directed at the Bank of Ghana (BoG) to withdraw the licences of the defendants for their inability to pay back investment on maturity dates.”

They averred that the investments had matured since July 20, 2017, with the latest maturing on February 2, 2018, but the defendants have failed to honour their part of the contract.

The plaintiffs averred that after several meetings with CHD Financial Holdings and CDH Savings and Loans, the parties undertook reconciliation.

They stated that the defendants agreed to pay all the outstanding amounts owed but have failed to do so despite several promises.

They are of the view that the defendants would not pay the outstanding amounts unless ordered by the court to do so.

They are therefore seeking an order directed against the defendants jointly and severally for the recovery of an amount of GH¢83,489,123.29 and $5,289,315.07, being the outstanding amount agreed as owed to the plaintiff by the defendants- CDH Financial Holding and CDH Savings and Loans on or about December 31, 2017.

They are also seeking “interest on GH¢ 83.489,123. 29 calculated at the prevailing commercial bank lending rates from December 31, 2018, till the date of final payment and interest on US$5,289,315.07 calculated at the Bank of Ghana United States dollar lending rate from December 31, 2018, till the date of final payment.”

Apart for the payment of the monies and accrued interest, the plaintiffs also want an order directed at the Bank of Ghana (BoG) to withdraw the licences of the defendants due to their inability to pay back investment on maturity dates.

They are also seeking damages for breach of contract, costs and any other relief (s) as the court may deem fit.

The Receivers recently filed another against the shareholders of the defunct bank for mismanagement and breach of banking sector regulations which led to the collapse of the bank.

In the suit, the Receivers are praying the court to order Pastor Mensa Otabil, William Ato Essien and the other shareholders to cough up GH¢748.251 million shareholder loans they granted themselves and promised to repay but have failed to do so.

‘Absolute False’

Meanwhile, officials of CDH Savings and Loans have denied allegations that the company owes defunct Capital Bank.

According to the Head of CDH Investments, Emmanuel Adu-Sarkodie, Capital Bank rather owes CDH Savings and Loans and described the claims as absolutely false.

He, however, conceded that CDH Financial Holdings owes Capital Bank some money and that an agreement had been reached for it to be paid.

“The accusation is absolutely false; it may be an example of what you call fake news. CHD Savings and Loans does not owe Capital Bank any money. It’s Capital Bank that owes CDH Savings and Loans. When we meet in court next week they would have to show the court where they came up with such a number,” Mr. Adu-Sakordie said told Citi FM.

He added that “we told them that the money was not with us. The money was actually with Premium Bank, which is to the tune of GH¢92 million. Premium Bank is going to pay the money and the money would come soon,” Mr. Adu-Sarkodie added.

Source: Daily Guide