Michael Nyinaku, founder of Beige Bank, the financial institution whose license was revoked in 2018, has been acquitted by the court.
Beige Bank collapse (August 1, 2018)
- The Bank of Ghana revoked Beige Bank’s license and placed it under receivership after uncovering irregularities in its financial practices.
Major allegations
- Nyinaku was facing 43 counts – including stealing, fraudulent breach of trust and money laundering – with accusations that he diverted over GHC 1.2 billion (or even up to GHC 1.3 billion) from depositors between 2015 and 2018.
- Among the alleged moves:
- Transfers of GH¢448 million in fixed deposits to Beige Capital Asset Management (BCAM), his other company.
- Transfers of GH¢141 million from another 35 deposits to the Beige Group, a company wholly owned by Nyinaku.
- Creation of a fictitious First Africa Savings & Loans (FASL) account into which GH¢320 million was diverted.
- Additional misappropriations via vouchers and memos to companies he controlled.
Court process & progress
- He pleaded not guilty in late 2022, and was granted bail of GH¢200 million with strict surety conditions.
- The prosecution presented several witnesses, and the defence followed with a lengthy witness list (61 witnesses announced by March 2024) .
- Some defence testimony included claims that transactions were legitimate banking operations (such as forex trades), though contested in court.
- The prosecution formally closed its case in October 2023, but no verdict has been rendered yet.
Current status & key points
- Legal timeline: Prosecution case closed around November 2023; defence was expected to submit closing arguments following that conclusion. Bail has remained in effect since late 2022, with no change to custody status.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
