Beige-bank trial: Beige Bank disobeyed Bank of Ghana – Prosecution

Beige-bank trial Beige Bank disobeyed Bank of Ghana - Prosecution

In the ongoing trial of the former Chief Executive Officer (CEO) of the defunct Beige-Bank, Mrs. Evelyn Keelson, Chief State Attorney (CSA), representing the prosecution, has challenged the testimony of Mr. Hafisdeen M. Dawda, former Chief Financial Officer of the Bank, regarding alleged disobedience of directives from the (BoG).

During cross-examination, Mrs. Keelson accused Beige Bank of attempting to deceive the BoG by withholding information about the depletion of investments. She asserted that despite BoG's directive in July 2018 to write off certain investments, the bank failed to comply, which she claimed was an attempt to present a false picture of the bank's financial health.

Mr. Dawda, however, denied the accusation, stating that the issue of the investments was transparently presented to the receiver when it came for examination, leading to the recommendation for their write-off.

Mrs. Keelson further pointed out specific financial transactions, alleging that substantial sums were transferred to Beige Group from various , contributing to the bank's financial woes. Mr. Dawda disputed this, stating that the transfers did not result in additional funds for Beige Group.

The prosecution highlighted conflicting reports submitted to the BoG and the , alleging that the bank's financial condition was misrepresented. Mrs. Keelson claimed that the bank was insolvent and unable to honour depositors' withdrawals due to liabilities exceeding assets, which Mr. Dawda contested, asserting that the bank had significant assets and liabilities.

Regarding the bank's request for assistance from the BoG before its revocation, Mr. Dawda clarified that while the bank sought liquidity support, this did not necessarily indicate insolvency. He differentiated between liquidity challenges and insolvency, noting that the former pertained to short-term liquidity issues, whereas the latter implied persistent negative net worth jeopardizing long-term viability.

The former CEO, Nyinaku, faces charges of theft and money laundering, which he denies. He has been granted bail by the High Court presided over by Justice Mrs. Afia Serwaa Asare-Botwe.

Leave a Reply

Your email address will not be published.