The Insight has obtained damning information indicating that the First Capital Plus Bank is on the verge of collapse.<\/p>\n
A memorandum signed by the Chief Executive Officer of the Bank, Mr John Kofi Mensah claims that it may not be able to meet its obligations to its clients.<\/p>\n
The memorandum addressed to the Board of the Bank spells out numerous cases of mismanagement and corruption.<\/p>\n
The full text of the memorandum dated 11th August, 2014 is published below;<\/p>\n
BOARD MEMO<\/p>\n
FROM:<\/strong>\u00a0CHIEF EXECUTIVE OFFICER<\/p>\n TO:<\/strong>\u00a0CHAIRMAN AND MEMBERS, BOARD OF DIRECTORS<\/p>\n DATE:<\/strong>\u00a0AUGUST 11, 2014<\/p>\n URGENT ACTION TO SALVAGE THE REPUTATION AND FORTUNES OF FIRST CAPITAL PLUS BANK<\/strong><\/p>\n I write to reiterate my earlier concerns and request for the Board to act with expedition and take drastic and urgent steps to resolve the seemingly intractable problems that have bedevilled and continue to dog the growth and our efforts to stand the bank on its feet till date.<\/p>\n We have discussed these issues at length, but we do not seem to have made any significant progress as exemplified by the fact, among others, that a recent 3 man committee we set up to come up with some solutions appear to have been still born. We also appear to be perfecting the art of crafting long -winding resolutions which are not backed by any serious follow-up action.\u201d I perceive that we are very conversant with and know very well the problems that confront, but lack the critical boldness and courage to tackle the bull by the horns. With respect, we all appear to be guilty of fiddling while Rome burns.<\/p>\n As the CEO, coupled with my interests as a shareholder of the Bank, I wish to set the ball rolling by shaking myself out of the self-imposed slumber that we all find ourselves. I think that I cannot do less than be in the forefront and spearhead the efforts to grow the Bank and move it to the next level to the path of joining the ranks of the foremost financial institutions in the country. The clarion call has assumed some urgency due in part to the attempt by the Government\/Bank of Ghana to pass into law the Depositors Protection Bill and the Deposit Taking Institutions Bill which would, among others, oblige every Director of a Bank to report to the Bank of Ghana if he has reason to believe that a Bank of which he is a director cannot meet its future obligations on pain of criminal sanctions.<\/p>\n In short, transparency, candour and diligence in prosecuting a bank\u2019s object of an incorporation is no longer a matter of personal ethics, but have been raised to an obligatory statutory duty with From my perspective, the issues that require urgent action appear to be:<\/p>\n 1.0\u00a0\u00a0Our inability to establish offshore counterparty relationships due to issues with shareholder\u2019s credibility.<\/p>\n 2.0\u00a0On top of this issue is our continuing inability to establish offshore counterparty relationships with other banks and financial institutions. As we are all undoubtedly aware, this problem has arisen and persists as a direct consequence of outstanding and unresolved issues hovering around shareholders of the bank. The Deutsche Bank and others have, after conducting due diligence on the bank, rejected our request for business relationship with them. We all know and agree that this type of business relationship constitute one of the essential life lines for the Bank. Als long as this problem persists, we cannot reasonably expect to grow outside the boundaries of this country. This will undoubtedly lead to stunted growth and spell doom for the bank in the long run. Unfortunately as the issue is, I am sorry to state that we have dithered for far too long on this matter and require to act forthwith.<\/p>\n 3.0\u00a0Unresolved TPF and capitalization issues.<\/p>\n 3.1\u00a0\u00a0This is a long standing issue and needs no further clarification.<\/p>\n 4.0\u00a0Increasing interest expense and general costs of doing business<\/p>\n 4.1\u00a0\u00a0This has been the bane of the bank for some time now, that while management is embarking on a desperate and aggressive deposit mobilization to shore up liquidity to cover holes in the balance sheet, it is resulting in increased interest expense and general costs to us. This is detrimental to our profitability drive and the same is unsustainable.<\/p>\n 5.0\u00a0Potential TPF and Related Costs<\/p>\n Decisions on some emerging liabilities which are potential TPF remain outstanding<\/p>\n 6.0\u00a0For the above and other reasons, I hereby outline the following as urgent steps that the Board ought to ensure to save the Bank from any further casualties.<\/p>\n 7.0\u00a0I 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 (though I fervently hope that we act with expedition and seriousness to avoid that possibility).<\/p>\n 8.0Accordingly, I think that we are all sitting on a time bomb and cannot afford to spend too much time in drawing a road map based on the proposals outlined here. I would think that we should be able to accomplish this assignment within three weeks from now.<\/p>\n 9.0\u00a0Of course, the Board\u2019s acceptance or otherwise of my proposals would go a long way to assist my interpretation of the Board\u2019s 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.<\/p>\n Submitted for the board\u2019s action.<\/p>\n –<\/p>\n Source: The Insight Newspaper<\/p>\n","protected":false},"excerpt":{"rendered":" The Insight has obtained damning information indicating that the First Capital Plus Bank is on the verge of collapse. A memorandum signed by the Chief Executive Officer of the Bank, Mr John Kofi Mensah claims that it may not be able to meet its obligations to its clients. The memorandum addressed to the Board of […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,11],"tags":[794,10175,3,10230,10231],"yoast_head":"\n
\nsanctions to boot. We can therefore not have the luxury of going on with our duties as \u2018business-as usual\u2019. On the contrary, we are being compelled to move forward.<\/p>\n\n