An Accra High Court has ruled that founder of defunct Beige Bank, Michael Nyinaku, has a case to answer for allegedly engaging in money laundering, stealing and fraudulent breach of trust.
The court presided over by Justice Afia Serwaa Asare Botwe, noted that once it was alleged that Mr. Nyinaku had been unable to account for funds said to have been kept at a location in his knowledge, it meant that he had to provide answers.
State Prosecutors had earlier told the court that a review of the operations of the defunct bank, following a revocation of its license, identified a number of suspicious and unusual transactions. Mr. Nyinaku was accused of using various means to transfer huge sums of money to companies related to him for his personal benefit.
These were deposited funds lodged with Beige Bank. A total of GHC448 million being funds in more than 10,000 fixed deposit bank accounts are said to have been moved to Beige Capital Asset Management Company Limited (BCAM) without the knowledge and consent of these customers. Prosecutors explain that BCAM is a limited liability company wholly owned by The Beige Group Limited (Beige Group) which is wholly owned by the businessman.
Another amount of GHC141 million being funds held in 35 fixed deposit investment accounts were also transferred to the Beige Group. He is further accused of using payment vouchers, emails and memos to cause a total amount of GHC20.5 million of depositors’ funds to be transferred to a number of companies and individuals for his benefit. These transactions are said to have been recorded in a general ledger account of the bank described as “Shareholders Account”.
Prosecutors explain that all these sums and other monies moved from the accounts remain unpaid as at 1st August, 2018 when the Bank of Ghana revoked Beige Bank’s license. Five witnesses were called in support of the state’s case against the businessman.
Justice Afia Asare Botwe who reviewed the testimonies and a litany of documents submitted to the court, took the view that Bankers hold funds in trust for depositors. If therefore, there is any evidence which suggests the dealing with funds in a manner as has been alleged, there needs to be an explanation as to how these situations came to pass and how regular they were.
“In my considered view, and same is supported by the law, an accused person ought to be given every opportunity where prima facie evidence meriting the opening of his defence is found, to give an explanation to the court, especially where the accused person may have had misgivings about how an exercise such as an audit was undertaken” she stated.
Justice Botwe thus, ordered that Mr. Nyinaku opens his defence in respect of multiple counts of Fraudulent Breach of trust, stealing and money laundering.
The court added that evidence suggesting the transfer of depositor’s fund in such a disturbing manner means Mr. Nyinaku ought to offer some explanation