Former founder of the defunct Capital Bank, William Ato Essien is being considered for a presidential pardon following his conviction in October 2023 for causing the insolvency of his bank.
Ato Essien of Capital Bank and 11 others are being considered for a prerogative of mercy, a constitutional provision that allows a president to pardon a person convicted of an offense.
“The president of the Republic wishes to exercise his prerogative of mercy in accordance with Article 72 (1) of the Constitution to pardon certain convicted persons,” a letter dated December 31, 2024, signed by the president’s lawyer, Kow Essuman and transmitted to the Council of State stated.
As the Chief Executive of Capital Bank, Essien was found guilty of causing the insolvency of the bank by misappropriating approximately GH¢200 million of a GH¢620 million liquidity support provided to the bank by the Bank of Ghana (BoG). The mismanagement of funds led to the collapse of Capital Bank, one of many institutions affected during the 2017-2019 financial sector clean-up.
Despite attempting a plea deal with the state to pay GH¢90 million in restitution, Essien failed to fulfill the conditions of the agreement. This failure resulted in his conviction and a 15-year prison sentence.
However, he is being considered for pardon due to severe health complications, according to the letter from the presidency. “He is suffering from severe life-threatening medical conditions and has undergone multiple surgeries as a result,” the letter explained, urging the Council of State to “expeditiously” consider the matter.
Essien’s consideration for pardon has sparked mixed reactions. Some see the pardon as a compassionate decision within the president’s constitutional powers, while others worry about its impact on the financial sector’s credibility. Given that the financial system is still recovering from the 2017-2019 crisis, there are concerns about what message this decision sends to the public and future business leaders.
In reaction, the presidency has denied granting pardon to any of the convicted persons although it appears a process has started.
