An Accra High Court has determined that Michael Nyinaku, the founder of the defunct Beige Bank, must answer charges of money laundering, stealing, and fraudulent breach of trust.
Justice Afia Serwaa Asare Botwe, presiding over the case, emphasized that since Mr. Nyinaku was accused of being unable to account for funds within his knowledge, he must provide explanations.
State Prosecutors had alleged that after the revocation of Beige Bank’s license, a review of its operations revealed suspicious transactions.
Mr. Nyinaku was accused of transferring substantial sums of money to companies related to him for personal benefit, using various means.
The funds, totaling GHC448 million from over 10,000 fixed deposit accounts, were reportedly moved to Beige Capital Asset Management Company Limited (BCAM) without customer knowledge or consent.
Another GHC141 million from 35 fixed deposit investment accounts was also transferred to the Beige Group.
“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.
Prosecutors asserted that Mr. Nyinaku used payment vouchers, emails, and memos to transfer GHC20.5 million of depositors’ funds to various entities for personal benefit, recorded in a bank ledger account labeled “Shareholders Account.”
Justice Afia Asare Botwe, considering witness testimonies and submitted documents, emphasized that bankers hold funds in trust for depositors.
“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.
In the presence of evidence suggesting mishandling of funds, the accused must provide an explanation.
The court ordered Mr. Nyinaku to open his defense regarding multiple counts of Fraudulent Breach of trust, stealing, and money laundering.
The court emphasized that evidence indicating the transfer of depositor’s funds in such a concerning manner requires Mr. Nyinaku to provide explanations.