CDH Savings and Loans, a subsidiary of CDH Financial Holdings, has stated that it does not owe the defunct Capital Bank to the tune of GH¢110million for which it has been sued: instead, the defunct bank owes it GH¢14.6million.
“CDH Savings and Loans would like to clarify to the general public and our cherished clients that we do not owe Capital Bank,” a statement from the financial institution said.
Lawyers and receivers for the defunct bank sued the financial institution and its holding company to recover over GH¢100million in debt, while asking the court to order the Bank of Ghana to withdraw the defendants’ licence because of their inability to pay back investment on maturity dates.
But the financial institution has said the suit initiated by the receiver of Capital Bank has been actuated by malice and utmost bad faith. “CDH Savings and Loans Limited will in the circumstances take the necessary legal action to correct this erroneous impression, and also claim damages for defamation,” it said.
To further clarify its position, CDH Savings and Loans Limited noted that as at August 2017 it was owed GH¢26,287,924 by the defunct Capital Bank – an amount CDH Savings and Loans Limited invested at Capital Bank.
But Capital Bank was owed GH¢11,652,055, an amount it invested at CDH Savings and Loans. When the said investment is deducted from its debts, Capital Bank owes CDH Savings and Loans a net amount of GH¢14,635,865 – which amount is still in due and owing.
“This amount owed has been admitted, by a letter from the Counsel for the Joint Receivers of Capital Bank after a reconciliation process, as an amount owed by his clients to CDH Savings and Loans Limited,” the statement added.
In the letter, which was signed by Joe Aboagye Debrah – a partner at 1stLaw, CDH Financial Holdings confirmed that its owes the defunct bank a total of GH¢69,780.630 and US$5,024,110; while the defunct bank owes CDH Financial Holdings US$3,952,640 – which brings it to a net balance of US$1,071,469 on the dollar investment.
“It was agreed that there would be a set-off, such that GH¢14,635,865 will be deducted from GH¢69,780,630 leaving an amount of GH¢55,144,761 outstanding and payable by CDH to our clients, the joint receivers of Capital Bank.
“An amount of US$1,071,469 is outstanding and payable by CDH Financial Holdings to our clients. CDH will transfer a total amount of GH¢55,144,761 and US$1,071,469 in full and final settlement of all financial obligations between the parties aforesaid as closure,” the letter noted.