Julius Ayivor, lead team member of the Receiver of Beige Bank says it is far from the truth that customers of the bank consented to the transfer of their funds deposited with the bank to the Beige Group.
According to him, the Beige Group was not licensed as fund manager or to take deposits, hence there was no way that any of these customers sanctioned the transfer of their funds.
He was testifying as prosecution first witness (PW1) in the trial of Michael Nyimaku, who has been charged with some 43 counts of fraudulent breach of trust, money laundering and stealing of depositors funds to the tune of GH¢1.3 billion.
Mr Ayivor told the Accra High Court, presided over by Justice Afia Serwaa Asare-Botwe, on Monday, April 3, 2023 during cross-examination by counsel for Mr Nyimaku that the movement of funds from Beige Bank to the Bank cannot be described as transfers but siphoning of customers deposits.
However, the counsel for the accused, Thaddeus Sory, disagreed and stated to the court that the only reason customers’ funds were transferred to the Beige Group was as investment.
The following are excerpts of cross-examination
Q. You told the court that the accused wrote proposed terms of repayment?
A. Yes
Q. You have provided correspondence of this to the Receiver?
A. That’s so
Q. Take a look at this and tell the court what document you have?
A. It’s a letter from Beige, dated April 12, 2019 addressed to the receiver of beige bank and the subject reads: disclosures to defunct beige bank.
Q. There is another letter that I have given to you. Can you tell the court, which letter is it?
A. It’s a letter from the Receiver of Beige, dated May 22, 2019, which was in response to the letter from Beige, date April 12, 2019.
(Counsel prayed to tender in the documents and prosecution raises no objection.)
Court: Document tendered in evidence without objection from the prosecution and marked as exhibit 10 and 10a.
Q. Can you tell what it is?
A. A letter from Beige Business Solution dated, May 10, 2019, and addressed to the Receiver and subject matter is “Exposure to Beige Bank.” And the second is a letter from Beige Bank, dated May 23, which was in response to April 15,Beige business Solutions request for exposure.
Q. Tell the court what those documents are?
A. The first is a letter dated April 15, 2019 from BBS Truck addressed do the Receiver of Beige Bank with the subject the exposure and the second is a response from the receiver of beige bank dates 23, May 2019.
Q. You further testified in this court in relation to payment made by BCAM to a certain Charlotte Awuah and those payments could not relate to the monies transferred from Charlottes Awuah’s account to BCAM because it would mean that BCAM was paying interest of about 50 per cent where BCAM could not sustained?
A. That’s so
Q. Look at paragraph 30b of your witness statements page 14 at the very top of your testimony is that Ernest and Barbs Real Estate Developer has placed investment at the bank at the rate of 49.5 per cent?
A. That’s so
Q. Exhibit AC is a list of customers’ deposit you alleged were transferred from the bank to the Beige group?
A. That’s so
Q. I want you to pay attention to the follow customers whose name appeared in exhibit AC.
Kojo Ohene Kyei without an account number … in the bank
Customer number 2 is GIHOC, Customers number 10 and 20 is a certain Addo Duffuor Appiah Janet, Customer number 18 is Nordia Capital, Customer number 29 ComesSavings, 31- All Time.
Each of these customers has a start date of their deposit and a particular sum of money deposited.Can you check from exhibit AD2,which is the bank statement of the Beige Group and identify them with their transactions.
Break them down. Take each of them and answer them.
A. First of all, customer number 1 there is no starting date so I can’t identified. Customer number 2, the start date is February 11, 2016…Exhibit AD 2 starts from February 14 and the start date of his investment was Feb 11, 2016.My lady, transaction number 10 18, 29 and 31 are not on exhibit AD2.
That is because in explaining deposit that have been transferred from the accounts of the 23 customers to the Beige Groups 2 examples involving Tobinco’s GH¢20million that was siphoned from their accounts and then 3deposits of Ernest and Barbs which were also siphoned from their accounts to the Beige Group were issued and those were the specific exhibits provided to support those specific examples.
Q. It is true that you have used Tobinco, and Ernest and Barbs as example but your Exhibit AC deals with the period of transactions as you will want the court to believes covered by Exhibit AD2, and to the extent that all the customers I have referenced you to cannot be found on Exhibit AD2.Your exhibit AC cannot be correct?
A. Exhibit AC is very credible and matter of fact, the Beige Group does not have one account with Beige Bank. Any transaction on Exhibit AC that is not contained on Exhibit AD2 is contained in those other bank account of the Beige Group, which is available.And if counsel wants it we will provide.The transactions specific to the examples provided are the ones extracted from Beige Group account.
Q. I’m finally putting it to you that in respect of these customers, which I have just referred you to, as far as your evidence is concerned their deposits were never a concerned toBeige Group?
A.They were siphoned.Those specific funds were siphoned from the accounts of those customers to Beige Group and the evidence of these customers beings paid with BoG bailout package is contained on Exhibit 5 in records of the court?
Q. If you take a look at Exhibit AC you realize that the names of some customers appeared more than once?
A. That’s so.
Q. And your suggestion for Exhibit AC appears that those customers’ funds were transferred to the Beige Group more than once?
A. That’s so
Q. Did you find out as the Receiver that these customers were specifically targeted to transfer their depositsany special reason why their deposits were the subject of transfer to the Beige Group?
A. I don’t know for a fact that those customers were specifically targeted or there was a special reason that necessitated the siphoning of their funds but what is apparent from the grand scheme that was perpetuated is that once the customers had a lot of funds that appeared to be an opportunity for the accused to oversee the siphoning of those funds to his companies.
Q. Did the investigation from the receiver revealed what could be a lot of sums in terms of amount?
A. From GH¢1,000 to in excess of GH¢20million, as seen in the case of Tobinco.
Q. I’m putting it to you that the only reason why these customers have their funds transfer to the Beige Group is because they sanctioned the transfer of their funds from the bank to the Beige Group as investment?
A. That’s a blatant untruth. First of all the Beige Group, which is a company limited by liability is not licensed to take deposit neither it is licensed to operate business of banking or fund management so there is no way that any of these customers sanctioned the siphoning of their funds to the Beige Group.
My lady, the Beige Group is just supposed to be a holding company with the responsibility of supervising from what I understand companies that fall under it, which are all owed by the accused. So the Beige Group has no power or authority to take deposit.
Q. Are you aware that the Beige Group source funds from various sources including the bank and from its businesses.It was able to support the banks payment of interest to its customers?
A. I’m not aware of that allow know is that the beige group under the accused turned the bank into a cash cow where funds of customers were siphoned by the accused into beige group.
Q. If you take a look at Exhibit AC, once more customers’ number 11 and 23, are related to one customer Ernest and Barbs?
A. That is correct
Q. The transactions in respect of this customer that I have just referred you to are date January 15,and March 27, 2018?
A.That is correct.
Q. Let’s go to the first transaction of January 15, 2018 on exhibit AD2, let’s go to this particular transaction. Can you find it on exhibit ad2?
A. Yes.
Q. It is in a sum of GH¢12.3million
A. Yes.
Q.The narration there clearly started that it was a fund transfer from Ernest and Barbs?
A. No. The narration is finds transfer – Ernest and Barbs to the beige group.
It did not say funds transfer by Ernest and Barbs?
Q. Take a look at the next transaction march27, 2018. Can you find it on exhibit AD2?
A. That’s so.
Q. Can you tell the court what the narration is?
A. Funds transfer from Ernest and Barbs Real estate developers to the Beige Group?
Q.How much was transferred?
A. GH¢2755, 332.92
Q. And this is the subject of your testimony in your witness statement?
A. That’s so
Q. Take a look at customers numbers 6 and 8. They relate to the same customer, Progress Savings and Loans?
A. That so
Q. The information on your Exhibit AC reflects transaction of December 4, 2017 and October 5 2017?
A. That’s so
Q. Please look at the transaction of AD2 transactions of 2017?
A. It is a transaction with reference number FT1727813607 in an amount of GH¢3million.
Q. And the narration?
A. Fund transfer to the Beige Group Limited.
Q. Let go to customer 12 on Exhibit AC his name is Joseph Amankwah?
A. That’s so.
Q. Date of transaction is January 17, 2017?
A. That’s so
Q…?
A. It is a transaction with transaction number ft1 …in an amount of GH¢1462500.
Q. What’s the narration?
A. Transaction from JosephAmankwah to the Beige Group and that narration simple means the funds were transferred from Joseph’s Amankwah to the Beige Group account and this was not from the instructions of Joseph.
Q Take a look at customer number 3 in Exhibit AC is Anthony and Linda?
A. That’s so
The transaction there was to start on January 19, 2017?
A. That’s so
Q. Can you find it on Exhibit AD2?
A.The extract Exhibit AS2, which is an extract of Beige Group account starts from February 4.
Q. Will you find the transaction on January 19, 2018, you can find the transaction under reference. See if that’s the same transaction?
A. Yes, I can find the January 2018 you are referring to but because of the differentials of the date, I want to be very sure of it is the same transaction being talked about here.
Q. But the amount of GH¢700k is what was referred in your Exhibit AC?
A. I will need to check to confirm.
Q. AD2 and AC are in from of you?
A. The transfer, exhibit AC starting date is January 19, 2017, and the amount is GH¢700, 000.00.
On Exhibit AD2 is the same amount GH¢700, 000 and the date is January 2018, and I am quite confidence that it would be the same transaction but I will just need to check and be very sure.
Q. What’s the narration with regard to this particular transaction?
A.Transfer of BO Antony and Linda…
Q I’m putting it to you that the BO means by order?
A. That’s so. But Antoine and Linda…did not sanction this transfer.
Q. Is that written in Exhibit AD2 or this is your own explanation?
A. Based on the validation work we have, I can confirm that description is just a façade.
Q. Take a look at Exhibit AD at page 6, you will see a transaction of GH¢12million credit to the account of the Beige Group?
A. Yes
Q. I would you look at customer number 5 that customer is progress savings and loans
A. That’s so.
Q. And his transaction is a principal of GH¢12million?
A. That’s so.
Q. I’m putting to you that the transaction of GH¢12million on Exhibit AC of progress saving and loans is that on Exhibit AD2?
A.That’s so.
Q. Can you tell the court the narration on it?
A. I believe it is investment placement the investment is not written in full but I believed it is placement and my lady beige group is not a deposit taking institution and so there is no reason why progress savings a loans will place a fixed deposit with the beige group.
Q. Take a look at page 33 ofExhibit AD2. You will see a transaction of May 2018 in a transaction of GH¢947,397.16?
A. That’s so
Q.Can you please tell the court the narration it?
A. Transfer to Tobinco funds transfer from the Beige Group to Tobinco Pharmaceuticals Limited.
Q. Let’s go to page 35, there is a transaction dated June 19, 2018 in the sum of GH¢473, 698.68?
A. That’s so
Q. Look at page 37. There is a transaction dated July 20, 2018, also in the sum of GH¢473,778.63?
A.That’s so.
Q. Funds transfer from the Beige Group to the Tobinco Pharmaceutical Limited?
Q. Page 23 of exhibit AC there is a transaction dated February 6, 2018, in the sum of GH¢507, 375?
A.That’s so.
Q. Now he was paid by Cheque number 00096?
A. That’s so
Q. I’m putting it to you that payment was made to Ernest and Barbs?
A. I don’t know that for a fact.
Q. Look at page 26 of AD2 you will see a transaction dated March 7, 2018
A. There are five transactions with same date
Q. There is one with GH¢507, 375?
A. That’s so.
Q. It was paid by a Cheque number 00097?
A. That’s so
Q. I’m putting it to you that payment was made to Ernest and Barbs?
A. I don’t know that for a fact.
Q.Take a look at this document and tell the court, which documents you are holding
A. A photocopy of a cheque in favour or Ernest and Barbs Real Estatein the sum of GH¢507,375 and dates March 5, 2018?
Q. The cheque number of the documents correspondence with the cheque number on Exhibit AD2?
A. That is so.
Q. Look at page 29 of Exhibit AD2 transaction dated April 4, 2018, in the amount of GH¢83, 808.04?
A.That’s so
Q. By way of Cheque 000996?
A. That’s so
Q putting it to you that payment was made to Ernest and Barbs?
A. I don’t know for a fact
Q. Can you tell the court what you are holding in your hand?
A. A photocopy of a Cheque in favour of Ernest and Barbs in an amount of GH¢83,000,dated April 3,2018 and signed by the accused…Cheque number is 000978.
Q. And this Cheque has a number directly corresponding in your Exhibit AD2?
A. That’s so.
Q. On cheque number 117 and 118,you will find payment in the sum of GH¢35,000.
A.That’s so.
Q. And those two are payment by Cheque numbers 117 and 118?
A.That’s so.
Q I’m putting it to you that those payments were made to customer number four to Anim Kwame and James Kojo Bonsu?
A. My lady, that’s not so. Exhibit AC shows a joint account in the name of Anim Kwame and James Kojo Bonsu whilst Cheque 132, 122. 117 and 118 were made in favour of one Kwame Owusu Anim.
Q. The other names are?
A. Cheque numbers 133 and 118 are in the name of James Kojo Owusu
Court indicated time for end of cross examination.
Prosecution: No re-examination
