The Chief Executive Officer (CEO) of defunct Beige Bank, Mike Nyinaku, has been remanded in police custody. He is to be held there for one week. This follows the dismissal of a bail application by his lawyers who assured the court that he will cooperate with the ongoing trial.
Although the application was not opposed by the prosecution, the judge said his decision was because the prosecution said investigations were still ongoing. Mr. Nyinaku is facing trial over his alleged role in the collapse of his bank. In June 2019, the receiver for Beige Bank, Nii Amanor Dodoo sued him together with 12 of his subsidiary companies to a tune of over GHc1.3 billion.
Why Beige Bank lost license
The Bank of Ghana of Ghana revoked the license of Beige Bank in 2018. 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 GHc 494 million.
Out of the figure, GHc 282 million, representing 57% were loans and securities. According to the report, the bank gave an amount of GHc 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.
Receiver sues ex-Beige Bank CEO, subsidiaries; demands GHc1.3bn refund
Michael Nyinaku together with 12 of his subsidiary companies were subsequently sued by the Receiver of the defunct company, Nii Amanor Dodoo. He is expected to cough up over GHc1.3 billion.
Amanor Dodoo who dragged Nyinaku and 12 of his subsidiaries, including Legacy Pension Trust Ltd, The Beige Group Ltd, BBS Logistics and Beige Village to court, in his writ, insists that the defunct bank transferred several millions of Ghana cedis to the said companies ranging between GHc1 million and over GHc100 million.