Ex-Beige Bank CEO, Michael Nyinaku sued to refund GH₵1.3bn 

The Receiver of the defunct Beige Bank, Nii Amanor Dodoo, has gone to court to retrieve about GH₵1billion from the Chief Executive Officer (CEO) of the bank, Micheal Nyinaku and 12 of his subsidiary companies. The writ which was filed at the Accra High Court is also seeking an order to take over several landed properties and cars belonging to Nyinaku and his subsidiary companies. The receiver is seeking to take possession of about 10 landed properties and about 165 cars and equipment. According to the writ, the properties were acquired with funds from the defunct bank, whose license was revoked the Bank of Ghana last year. The receiver is, therefore, also seeking an order from the court to prevent Nyinaku or any or his privies from selling the properties or any asset of the defunct bank. The writ was filed by counsel for the Receiver, Mr Ace Ankomah. According to the writ, Nyinaku supervised and unlawfully instructed payments of hundreds of millions of Ghana Cedis to his  cronies and subsidiary companies without due diligence. It said Nyinaku allegedly hid behind “corporate veil to siphon BEIGE’s funds for his personal benefit and other uses”. Other particulars of breach include “failure to exercise due diligence in authorising and/or approving loans and other advancements to and for the benefit of 2nd to 13th Defendants, which are companies he beneficially owns or otherwise controls”. “Failure to exercise utmost good faith towards 2nd Plaintiff by not reporting to Bank of Ghana and/or obtaining approval for the loans and other advancements made to his related interests, namely 2nd to 13th Defendants”.

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Why Beige Bank lost license Beige Bank was said to have obtained a banking licence falsely. An inventory asset and property report filed by the Receiver to the Bank of Ghana revealed that Beige Bank had total assets of GH₵494 million. Out of the figure, GH₵282 million, representing 57% were loans and securities. According to the report, the bank gave an amount of GH₵274 million, constituting 31% of the loans to related parties. The Receiver said Beige bank did not adhere to credit administration policies and had inadequacies in recovery efforts. Source:graphic.com]]>