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Former Beige Bank CFO denies allegations of customer fund misappropriation

April 3, 2024
Former Beige Bank CFO denies allegations of customer fund misappropriation
Former Beige Bank CFO Mr. Dawda M. Hafisdeen

Mr. Dawda M. Hafisdeen, former Chief Financial Officer (CFO) of Beige Bank, refuted allegations of customer fund misappropriation, stating that customers' money was not siphoned as claimed by the prosecution.

During his evidence-in-chief, Hafisdeen disagreed with Mr. Julius Ayivor, the main prosecution witness and leader of the investigation team, asserting that customers' accounts were not debited without their consent. He argued that if such unauthorized debits had occurred, at least one of the over 10,000 affected customers would have filed a complaint.

Hafisdeen clarified the distinction between fixed deposits and current accounts, emphasizing that fixed deposits involve funds borrowed by the bank from customers or loans given by customers to the bank. These funds are subject to specific terms, including interest rates, tenure, and conditions for early payment.

He explained that when customers enter into fixed deposit agreements, the funds are no longer available to them and do not remain in their accounts throughout the agreement's tenure. Therefore, suggesting that fixed deposits were moved without customer consent is fallacious.

Regarding banking practices, Hafisdeen stated that no one, including the CEO, could move funds from a customer's current account unless they were signatories to the account. He emphasized that banks only control the transaction platform and cannot debit or credit accounts without consent.

Furthermore, he refuted claims that customers received investment certificates related to transferred funds, asserting that they would have rejected the certificates if transfers were made without their consent.

Hafisdeen's testimony comes amid charges against Michael Nyinaku for theft and money laundering, which Nyinaku has denied.

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