Julius Ayivor, a leading term member of the Receiver, says has testified that money moved from customers’ accounts with Beige Bank into Beige Asset Capital Management (BCAM), both subsidiary of the Beige Group, were siphoned.
Testifying as the prosecution’s First Witness (PW1) in the case of the Founder of Beige Group, Michael Nyinaku, Mr. Ayivor explained to the trial court when money was transferred from a customer’s account without his or her authorisation, it was classified as siphoned.
He told the Accra High Court, presided over by Justice Afia Serwaa Asare-Botwe, while being crossed-examined by Thaddeus Sory, counsel for the accused, that funds in Beige Bank customers’ accounts, including one Emmanuel Ofori, Ideal Finance, Bawgiase Rural Bank, and Frederick Bruce Tago, were siphoned into the bank’s sister company.
However, Mr. Sory disagreed and indicated to the court that the movements of those funds were transfers of fixed deposits, and investments lodged with the bank.
The following are excerpt of the cross-examination.
Q: Take a look at Page 3 first. It is the statement of accountant for Ideal Finance. Is that correct?
A. Yes, my lady that is so.
Q: Can you identify the transactions by which these accounts were credited and debited to BCAM account?
A: So Ideal Finance account was debited on April 16, 2018, with an amount of GH¢3 million and the reference number for that transaction was FT1810648001, and that same amount was siphoned into BCAM’s account on the same date with the same reference number.
Q: But the description on that transaction is that it’s a fixed term deposit for 132 days in Exhibit H3?
A: That’s the description on the transaction on the Idea Finance account.
Q: It is the same description in Exhibit H2, which is the BCAM statement of account, is that correct?
A: That is so my lady.
Q: And you confirm that the reference numbers are the same between Exhibit H2 and Exhibit H3. Is that correct?
A: That is so. The transaction reference numbers are the same.
Q: I’m putting it to you that your use of the word siphoned is incorrect?
A: My lady, the use of the word siphoned is very correct, and that is so, because the GH¢3 million in question was taken out of Ideal Finance account on 16th April, 2018, without Ideal Finance’s knowledge and express instruction.
When a customer opens an account with a bank, it is only that customer that has the authority to move monies out of that account. However, where monies are moved out of that customers account without that customer’s express instructions that can only be referred to as siphoning.
Q: In the specific case of Ideal Finance, does your last answer mean that when it deposited funds with the bank, the bank locked the same money up in a hole so that when Ideal Finance wants part of the money, the bank will open the hole and satisfy Ideal Finance’s demand?
A: My lady, that is not what my answer means, when a customer deposits money into his/her account, the bank keeps a record of that deposit, and that record reflects on the customer’s statement of account.
Such that when a customer walks to the bank and requests for a statement of account, when that statement is printed out of the banks system, that money the customer deposited into that account must show both on the date when it was deposited, and also in the residual balance that will show on the statement.
Additionally, when a customer checks for instance on the bank’s online platform (bank app), the customer should see that he has that amount sitting in his account. My lady, as I explained earlier, money is fungible so you can’t separate customer A’s money which he brought to a bank from customer B’s money, because they all go into a pool.
However, the customer’s statement, that is testament to the bank’s obligation to the customer and must always reflect the amounts the customer brought to the bank, that amount can only go down if the customer instructed a portion or all of that amount to be transferred to another account.
Q: So in the particular case of Ideal Finance the records and the bank’s obligation, Ideal Finance stated that the bank accepted the money and Ideal Finance deposited it there for a period of 182 days, is that correct?
A: My lady, that is not so. If you look at Ideal Finance’s account statement, which is Exhibit H3, you’ll note that the GH¢3 million that was siphoned out on April 16, 2018, had a reference number that starts with FT, meaning Funds Transfer, and that same GH¢3 million went into the account of BCAM.
On Exhibit H2, if it was the case that, that GH¢3 million was invested with Beige Bank, the reference number would’ve started with MM, which is Money Market, and an example on that same Exhibit H3 is a transaction dated 5th January 2018, in an amount of GH¢7193426.15.
And my lady, you may note that the reference number for this particular transaction is MM1800530730. You’ll also note that the description for that particular transaction is new deposit.
My lady, this is a fixed deposit that Ideal Finance placed with Beige Bank. The two examples are different. While the GH¢3 million is the funds transfer into BCAM account, without Ideal Finance’s authorisation, the GH¢7.1 million is a fixed deposit placement with Beige Bank.
Q: Now when we were talking about the 3 million transaction of 16th April 2018, you only make reference to the reference number, you failed to go to the description column of that transaction which reads FDT. You deliberately ignored that; I’m putting that to you?
A: That is not so my lady; yes it is true that the description of the GH¢3 million is FTD182 Ideal Finance, however, that does not mean that that GH¢3 million that was siphoned out of the account was invested with Beige Bank.
My lady, BCAM was registered as a Fund Management Company, and it is licensed by SEC (Security and Exchanged Commission). There are people that would walk directly to the offices of BCAM and place investments because that is what they’re licensed to do.
In discussions with the accused person, he indicated to us that anytime a customer walks to Beige Bank requesting to place an investment with the bank at a set interest rate above the bank’s normal rates, they transferred those deposits to BCAM, and this 3 million is an example of one of those; it is different if the particular customer in question is referred to BCAM to place those investments with BCAM, that way Beige Bank wouldn’t have anything to do with that customer in that particular money, but where the customer is mislead to place that money in his account with the bank, with the understanding that that money is being invested with Beige Bank, but later that money gets siphoned out of that customer’s account to the account of BCAM, then that can only be taking something that you are not authorised to take.
Q: So does the customer’s understanding with the bank include the fact that when he comes back to the bank regardless of whether the money joins a pool of funds or it is used by the bank in the course of its business, all he’s entitled to is the money he gave to the bank?
A: Yes my lady, the customer’s undertaking includes that fact.
Q: If you look at Ideal Finance’s record, which reflects the transaction recording of the debit in the sum of GH¢3 million on 16th April 2018, it is described clearly as a fixed term deposit between Ideal Finance and the bank?
A: That is not so my lady. The description there does not say that the GH¢3 million that was siphoned out of the account was a fixed term deposit arrangement, between Ideal Finance and the bank. It doesn’t state so. And it’s not possible that it could be the case, because that 3 million moved out of Ideal Finance’s account into the account of another party.
My lady, the 3 million was a fixed term deposit with the bank; the bank’s record on Ideal Finance would’ve shown that indeed Ideal Finance invested a total of 3 million with the bank. This GH¢3 million went into the account of BCAM, so it is not possible that it was a fixed term deposit with Beige Bank, it’s not possible.
Q: Exhibit H3, which is the statement of account for Ideal Finance, does it record any transaction between Ideal Finance and any other company of the bank. Does it do so?
A: Yes my lady, it does. And a typical example is that same GH¢3 million that is under discussion.
Q. So in respect of that GH¢3 million, Exhibit H3 is a document that reflects the relationship between Ideal Finance and the bank only, is that correct?
A: That is so.
Q: By looking at Exhibit H3 alone, you can’t say any money was siphoned between the bank and BCAM, which is licensed to receive funds?
A: You cannot say so by a reference to just looking at Exhibit H3, however, you can always find out from the bank’s own records where the money went to, especially, into an account that is also domiciled with Beige Bank.
In this GH¢3 million example, the reference number is the unique that can help you trace where the money went to. My lady, in a bank every transaction has two legs; you can never have a transaction that is only one leg; when money moves from one location, it goes to another location, and banking software always keep records or traces of those movements.
Q: So if you look at Exhibit H2, now it is that which reflects the records and the testimony of the BCAMS obligations to the bank. Ideal Finance does not reflect there?
A: My lady, it is not BCAM’s obligation to the bank, but rather the bank’s obligation to BCAM.
Q: What is clear, however, is that Ideal Finance has no role to play in this transaction?
A: That is so my lady.
Q: What Ideal Finance is entitled to, is to use money deposited with the bank when it goes to the bank to collect it, is that correct?
A: That is so my lady, and also at any point in time that Ideal Finance walks to the bank for a statement of their account, that money should reflect on the bank of that account. So it is clear from Exhibit H3, that if Ideal Finance applies for its account statement at any point in time, it would reflect FTD, which you explained to the court earlier, meaning, Fixed Term Deposit for 182 days.
A: That is not so my lady. You’ll note from Exhibit H3 that the transaction immediately preceding that GH¢3 million transaction is a transaction with reference number MM180,9430543 in an amount of GH¢378,958.90.
And the outstanding balance on the account on that day is GH¢5,383,715.08, which means that if Ideal Finance had walked to the bank on that day, the amount that will be available to Ideal Finance would be the GH¢5.3 million, however, immediately the GH¢3 million was siphoned out of the account that same day, which reflects as a debit on the account, the closing balance went down from GH¢5.3 million to GH¢2.383715.08.
My lady, so at that moment, even though you can see on the statement that there is a 3 million transaction, it doesn’t mean that GH¢3 million still remains in the account of Ideal Finance, and it can never be so my lady.
Because it moved into the account of BCAM and it is BCAM that controls their account with the bank. They can move money from their account or decided to leave the money in that account.
Q: I’m not disagreeing with you; all I’m putting to you is that the figures you just read to the court are from the record of Ideal Finance with the bank?
A: That’s so my lady.
Q: And so if Ideal Finance takes a look at this statement…they’ll know that 3 million of its money is no longer available to it?
A: That is so my lady.
Q. Take a look at Exhibit H3; it is the statement of accounts for Ideal Finance?
A. Yes.
Q. Can you identify the transactions for which this account was debited and credited to BCAM’s account?
A. Yes I can. So Ideal Finance’s account was debited on April 16, 2018 with an amount of GH¢3 million, and the reference number for that transaction was ft1010…in that same amount was siphoned into BCAM’s accounts on the same date, with the same reference number.
Q. But the description of that transaction is that it was a fixed term deposit for 182 days of Exhibit H3?
A. That’s the description of the transaction on Ideal Finance’s account.
Q. It is the same description on Exhibit H2, which BCAM’s statement of account?
A. That’s so.
Q. And you confirmed that the reference numbers are the same between H2 and H3?
A. That’s so; the transaction reference numbers are the same.
Q. I’m, therefore, putting to you that the use of siphon is not correct?
A. My lady, the use of the word siphon is very correct, and that is so, because the GH¢3 million…
Q. The bank lodged the same money up in a pool, so in case Ideal Finance is coming for its money the bank will open into the log in to satisfy Ideal Finance’s demand?
A. My lady, that is not what my answer means. When a customer deposits money into his or her account, the bank keeps the record of that deposit, and that record reflects on the customer’s statement of account, such that when the customer walks to the bank and requests for a statement of account, when that statement of account is printed out of the bank’s system, that money the customer deposited into that account must show both on the date when it was deposited and also in the residual balance that will show in the statement.
Additionally, when a customer checks, for instance, on the bank’s online platform on the bank’s app, the customer should see that he has that amount sitting in his account.
My lady, as I explained earlier, money is tangible so you cannot separate customer A as money which he brought to a bank for a customer B’s money, because they all go into a pool.
However, the customer’s statement, that is testament to the bank’s obligation to the customer and must always reflect the amount the customer brought to the bank. That amount can only go down if the customer instructed a portion or all of that amount to be transferred into another account.
Q. So in the particular case of Ideal Finance, the records stated that the bank accepted the money and Ideal Finance deposited it there for a period of 182 days. That’s what the record says?
A. That’s not so. If you look at Ideal Finance’s account statement, which is Exhibit H3, you will note that the GH¢3 million that was siphoned on April 16, 2018, has a different number that starts with FT, meaning Funds Transfer, and that same GH¢3 million went into the account of BCAM on Exhibit H2.
If it was the case that that GH¢3 million was invested with Beige Bank the reference number would have started with MM, which is Money Market, and an example of that same Exhibit H3 is a transaction dated January 5, 2018, GH¢7,193,426.15.
And, my lady, will note that that transfer number is MM1800530730, this is a fixed deposit and you note that the description for that particular transaction is new deposit. This is a fixed deposit that Ideal Finance placed with Beige Bank. The two examples are different.
While the 3 million is a funds transfer into BCAM’s account without Ideal Finance’s authorisation, the GH¢7.1 million is a fixed deposit placement with Beige Bank.
Q. So does the customer’s understanding with the banking, including the fact that regardless of where the bank puts money, whether it joins a pool of funds, or it is used by the bank in the course of its business, all he is entitled to is the money he gave or deposited with the bank?
A. Yes, that is the customer’s understanding.
Q. If you look at the bank’s Ideal Finance records in Exhibit H3, which reflects its transaction with the bank recording the debit in the sum of GH¢3 million on April 16, 2018, it is described clearly as a fixed term deposit between Ideal Finance and the bank that’s the record name?
A. That’s not so. The description there does not say that the GH¢3 million that was siphoned out of the account was a fixed term deposit arrangement between Ideal Finance and that bank. It doesn’t state so.
And it’s not possible that it could be the case, because that 3 million moved out of Ideal Finance’s account into the accounts of another party. If the GH¢3 million was a fixed term deposit with the bank, the bank’s records on Ideal Finance would have showed that indeed Ideal Finance invested a sum of GH¢3 million with the bank.
This GH¢3 million went into the account of BCAM, so it was not possible it was a fix term deposit.
Q. So Exhibit H3, which is the statement of account for Ideal Finance, does it record any transaction between Ideal Finance and any bank?
A. Yes it does, and a typical example is that same GH¢3 million under discussion.
Q. In respect of that GH¢3 million, Exhibit H3 is a document that reflects the relationship between Ideal Finance and the bank only?
A. That’s so.
Q. By looking up Exhibit H3 alone, you cannot say any money was siphoned between Ideal to BCAM?
A. Yes you cannot say so by reference to just looking at Exhibit H3. However, you can always find out from the bank’s own records where the money went to, especially if the money went into an account that is also domiciled with Beige Bank.
In this GH¢3 million example the reference number is the unique identifier that can help you trance where the money went to. In a bank every transaction has two legs; you can never have a transaction that is only one leg.
When money moves from one location it goes to another location, and banking softwares always keep records or traces of those movements.
Q. Now, so if you look at Exhibit H2; now in that the records and the testimonies… BCAM’s obligation to the bank and Ideal Finance is not written there?
A. Not BCAM’s obligation, but rather the bank’s obligation to BCAM.
Q. What is clear, however, is that Ideal Finance has no role to play in this transaction?
A. That’s so.
Q. What Ideal Finance is entitled to is to use its money deposited with the bank when it goes to the bank to collect it?
A. That’s so, and also at any point in time that Ideal Finance walks to the bank for a statement of their account that money should reflects on the bank of that account.
Q. So it is clear on Exhibit H3 that if it applies for its account statement at any point in time, it will reflect FTD which you explained to the court to mean Fixed Term Deposit for 182 days?
A. That’s not so. My lady, you will note see from Exhibit H3 that the transaction immediately preceding that the 3 million transaction is a transaction which redeems number MM1809430543 in an amount of GH¢2,378,958.90, and the outstanding balance on the account on that GH¢5,383,715.08, which means that if Ideal Finance had walked to the bank on that day, the amount that would be available is that GH¢5.3 million, however, immediately the GH¢3 million was siphoned out of the account that same day, when it represents as a debit in the account the closing balance went down from GH¢5.3 million to GH¢2,383,715.08. So at that moment, even though you can see from the statement that there is a GH¢3 million transaction, it doesn’t meant that GH¢3 million still remains in the accounts of Ideal Finance, and it can never be so, because it moved into the account of BCAM and it is BCAM that controls their account with the bank. It’s BCAM that can move money from the account if they decide to move money.
Q. All I’m putting to you is that the records you have read to the court are records of Ideal Finance?
A. That’s correct.
Q. When Ideal Finance looks at this statement it will be that the GH¢3 million is no longer available to it?
A. That’s so.
Banks record
Q. On July 27, 2018, a sum of GH¢8,465, 597.23 was credited to Ideal Finance?
A. That is so.
Q. And if you look at the description that accompanies it is FTD, which you have explained means Fixed Term Deposit redemption to Ideal Finance?
A. That’s so.
Q. On the same day, July 26, 2018, the sum of GH¢8,341,221.05 was credited to the account of Ideal?
A. That is so.
Q. This last transaction was labelled as a new deposit?
A. That’s so.
Q. On August 3, 2018, there is a repayment of the principal GH¢3,568,438.36?
A. That’s so, and that GH¢3.5 million relates a repayment to an earlier fixed deposit that Ideal Finance deposited at the bank on March 1, 2018…so the bank was repaying Ideal Finance’s Fixed Term Deposit, and this amount is different from the GH¢3 million siphoned out of the account of April 16. 2018.
Q. With regard to the GH¢8 million after the GH¢3.5 million, there are two new deposits on August 6, in the sums of over GH¢3 million and over GH¢8 million?
A. That’s so.
Q. On the same day, August 6, 2018, Ideal Finance had a credit balance in excess of GH¢12 million?
A. That’s so, and that was before the two new fixed deposit were placed with the bank by Ideal Finance.
Q. Now, you have explained to this court that new deposit means fixed deposit?
A. That’s so.
Q. When you look at this your new deposit, they don’t tell us for how long this your fixed term is created?
A. No we don’t have that information on the statement.
Q. At this point in time, it is the receivers who were in charge of the bank when these new terms deposit were created?
A. That’s so.
Q. And since then there have been several new deposits with the receiver, for example, August 7, 2018, two deposits, and August 22, 2018, correct?
A. That’s so.
Q. And the bank statement continues until December 6, 2018, when its balance recorded over GH¢22 million?
A. That’s so, but that is not the last transaction on that statement.
Q. So on the same statement of December 2018, there is a transfer of GH¢20,600,000 to Bank of Africa?
A. That’s so.
Q. I believed Ideal Finance was the one that instructed this transfer?
A. That’s so.
Q. And after this transfer Ideal Finance’s balance, as of September 2018, came down to over a million Ghana cedis?
A. That’s so.
Q. All these transactions took place under your receivership?
A. That’s so. All the transactions, from August 3, 2018 to December 6, 2018, occurred after Beige Bank’s license was revoked.
Q. So after December 6, 2018, all the money in Ideal Finance’s account about seven reflected in a new transaction with the bank under your receivership as a new transaction?
A. That’s so. All the debits on Ideal Finances accounts that were described as new deposits about six of them happened after August 1, 2018 when the bank’s license was revoked.
Q. I’m putting to you the meaning of Exhibit H3… January 2018 and August 2018 were properly accounted for?
A. That’s not so. On Exhibit H3 all the payments that were made to Ideal from August 3 2018 to December 6 2018 was made out of the Government of Ghana bailout packages. At no point did BCAM provide any funds to pay these moneys, including the 3 million siphoned on April 16, 2018.
Q. From your last answer, which talks only about payment, the question I want to ask you is about the various new deposits that were deposited to the Ideal Finances account, from August 6 2018 onwards?
A. My lady, those credits were paid back to Ideal Finance after the bank’s license was revoked from the Government of Ghana bailout package, and you will note that from December 6, Ideal Finance instructed 20.6 million out of all those payments to be moved to Bank of African, and then Weber further to invest this time around with Consolidated Bank Ghana the balance on the account 1.9 million on December 10 2018.
Beige Bank at the time its license was revoked did not have the funds to pay all its depositors, including all those 10 plus deposits that were siphoned out of customers’ accounts to BCAM
Q. Revoked on August 1 2018?
A. Yes.
Q. From Exhibit H3 the first deposit was created on August 6, 2018?
A. Correct.
Q. On March 6, 2018, was the bailout package already in place such that all these moneys paid to Ideal Finance come from this package?
A. Yes.
Q. Was it paid from Beige Bank or Consolidated?
A. Paid through Consolidated Bank.
Q. Does Consolidated Bank keeps a different statement of accounts between itself and Ideal Finance such that we can verify these payments from the bailout package?
A. That’s so my lord; a record of all the payments that were made to the 10,000 customers, including Beige Bank, after its license was revoked.
Q. By payment, you mean recorded credit transactions on payment?
A. All credit transactions after 2018.
We request for the records between August 10 to December 1 between them and Ideal Finance.
Court: CBG records of payment made from August 1, 2018, to December 10, 2018, to Ideal Finance to the defence by close of business of Monday.
Exhibit H5
Q. Take a look at Exhibit H5; is it the statement of account of a certain Frederick Bruce Tagoe with the bank?
A. That’s so.
Q. Can you confirm from that statement the debit transaction on that account that got credited to the account of BCAM?
A. It is a transaction dated May 24, 2108, in an amount of GH¢8.8 million with reference number FT181445351; these descriptions FTD91Frederick Bruce Tagoe.
Q. Can you identify from Exhibit H4 the transaction that reflects crediting this amount of money to the account of BCAM?
A. On the account of BCAM that same transaction report on May 24 2018 with a credit of 8.8m in the same transaction number (above).
Q. It also has the same description?
A. That’s so.
Q. So you will note that as happens in Exhibit H2 and H3 are the same reference numbers are released between the bank and BCAM?
A. That’s so.
Q. And so the bank and BCAM were keeping accurate records and testaments of their obligations to one another on terms of the relationship as banks?
A. Yes, banks kept accurate records of the transactions involving the accounts of Frederick Bruce Tagoe on Exhibit H5, and the account of BCAM on Exhibit H4.
Q. The accounts were also accurate in respect of Exhibits H and H1 between the bank and BCAM?
A. That’s so. The banks kept accurate records of the transactions involving the accounts of Exhibits H and H1.
Q. The bank and BCAM also kept accurate records of Exhibit H2 and H3?
A. The bank kept accurate records of transactions between Exhibits H2 and H3.
Q. Let’s go to Exhibit H5. The transactions that you say resulted in the debiting of Mr. Bruce Tagoe’s accounts and the subsequent crediting of BCAM accounts, is the last transaction of Exhibit H5?
A. Correct. That is so, it is the last transaction on Exhibit H5.
Q. The description of that account is FTD91-Frederick Bruce Tagoe?
A. That’s so.
Q. My understanding of this description is a Fixed Term Deposit for 91 days?
A. That’s what it would mean.
Q. Now, Exhibit H5 has been truncate. It’s incomplete?
A. There would be other transactions after this date, May 24, 2018, on Frederick Bruce Tagoe’s account.
Q. As happens in the case of Exhibit H3, these transactions are either credit transactions or debit transactions?
A. That’s so.
Q. And, these transactions, as happens in Exhibit H3, will record redemptions of Mr. Tagoe’s deposit?
A. Those transactions, if any, could relate to redemption of the GH¢8.8 million siphoned out of the account on that day.
Q. If you look at Exhibit H5, you will see that as happens in the case of Ideal, each time Mr. Tagoe wants his money?
A. That’s so. The only difference is that source of that money. In the case of Ideal, all the repayments that happened from August 3, 2018 to the last date on Ideal’s statement, all the repayments to the last date of Ideal Finance’s account came from the Government of Ghana’s bailout package. Any repayments that happened before August 1, 2018 will be outside this bailouts package, because at the time the banks license had not been revoked.
Q. At the time the bank took over the bank on August 1, 2018, are you telling the court had no money at all, such that you only have to fall on bailout?
A. The bank had some funds, but it was significantly below how much the bank owes its customers, and we are taking able liabilities in excess of GH¢2.1 billion.
Q. Did this liability of GH¢2.1 billion, as at August 1, 2018, ever reduced to any sum below that GH¢2.1 billion?
A. That’s so. As at when the customers got paid out of the Government of Ghana bailout package the liability reduced.
Q. Now, did the liability of 2.1 billion ever reduced from assets of the banks?
A. The liability of GH¢2.1 billion, which we term the funding gap, has already taken into accounts the good assets of the banks.
Q. All these assets were taken over by the Receivers when it took over the bank?
A. that’s so.
Exhibit H9
Q. Can you identify the debit transactions from which the BCAM account was pending into…?
A. Yes my lady. It is a transaction dated March 12, 2018,… with transaction reference number FTD19807109023.
Q. Can you identify the corresponding transactions?
A. Yes. That 3 million was siphoned out of Bawgiase Area Rural Bank business account into BCAM’s account on the same March12, 2018, and the reference No. is the 1807109.
Q. And the description on the two exhibits between the bank and BCAM are the same?
A. Yes.
Q. Once again, in so as the customer’s transaction with the banks is concerned, the bank and BCAM kept accurate records?
A. The bank kept accurate records of both transactions initiated by the customer, and those that were not initiated by the customer And one that was not initiated by the customer is this 3 million that was siphoned from their accounts to the account of BCAM on March12, 2018.
Q. Take a look at Exhibit H9, the transaction that resulted in the crediting of BCAM’s account from the Bawgiase Rural Bank account is on March 12, 2018?
A. That’s so.
Q. Can you tell from the nature of the transaction recorded, in terms of description and reference number, what the term and relationship were between Bawgiase Rural Bank?
A. Bawgiase Rural Bank never had any arrangement with the bank in connection with this specific 3 million that was siphoned from their account, so by a mere reading of that transaction in a statement.
Q. All I asked was as between the banks and Bawgiase Rural Bank, what is the nature of the arrangement that Bawgiase Rural Bank deposited the money?
A. If you look carefully at Exhibit H9, you will note that before the 3 million was siphoned from Bawgiase Rural Bank into Nhana, there was an existing arrangement between Bawgiase Rural Bank and the bank in connection with the placement of a 2 million Fixed Term Deposit.
On March 8, 2018, an amount of 2 million was credited to the account of Bawgiase Rural Bank, which was a repayment of a Fixed Term Deposit they had with the bank legitimately, and you will look, the reference number starts with MM, which is Money Market, as earlier explained.
This credit of GH¢2 million, together with additional funds of GH¢660,931.51 on March12, 2018, resulting on that same March 12, 2018 in a balance on Bawgiase Rural Bank’s account of GH¢300,186.02, was what, on the instructions of the accused person, siphoned on the same March 12, 2018 into the account of BCAM.
So, yes, there was an existing relationship between Bawgiase Rural Bank and the bank, in connection with that GH¢2 million Fixed Term Deposit.
Q. Now, from your Exhibit H9, you cannot say whether that relationship between the bank and the Bawgiase Rural Bank involved an instruction from the Bawgiase Rural Bank to the bank to reinvest that money with BCAM. You can’t tell?
A. That’s so. And that would be the expectation if Bawgiase Rural Bank really wanted to invest in a Fixed Term Deposit of BCAM, they would have engaged BCAM directly.
My lady, if you looked at the certificate of investments that was always presented to these affected customers, you will note some peculiarities, and my lady, if I may call Exhibit 2, this is a certificate of investment that was issued to Emmanuel Richard Ofori, and the certificate was signed by two unnamed individuals who were not officials of Beige Bank.
The certificate just has on it the embodiment Beige and two reference numbers, one being No.001316 and the other being X002315.
My lady, and attached to the certificate is a print out of an email from an official of BCAM, Daniel Darko, to an official of Beige, Naomi Konotey.
My lady, in this illustration when Emmanuel Richard Ofori’s investment with the Beige Bank matured and was credited to his account by Beige Bank, which was a legitimate transaction, that investment ordinarily would be reinvested with the Beige Bank with a peculiar reference number which will start with MM, however, this certificate number was siphoned from Emma Richard of peri account sent to the account of BCAM, and an official of BCAM send this certificate to Beige Bank to be send to Emma as his investment with the banks.
There is no way a customer who walks to Beige Bank wanting to do business with the bank will know that this is not Beige Bank. This was an attempt to mislead the customer, and the customer walks away with the certificate thinking he has investment with Beige Bank, but his funds have been siphoned to BCAM.
So my lady, this transfer to BCAM was not done, one with the instructions of the customer in question, and two it was done without his knowledge.
