Prosecution witness Detective Abednego Archer has admitted in Court that GH¢21 million was utilised out of the GH¢320 million transferred from the Beige Capital Asset Management (BCAM) to First Africa Savings and Loans (FASL) second account.
Similarly, GH¢60,000 out of GH¢21 million was also embargoed by the Receiver of the Beige Bank.
Detective Archer, who investigated the collapse of the Beige Group, was testifying under cross-examination at the Financial and Economic Division of the Accra High Court, presided over by Justice Afia Serwaa Asare-Botwe, on Friday, July 21, 2023.
Mounting the box as fifth Prosecution Witness (PW5), Mr. Archer was cross-examined by Thaddeus Sory, Counsel for Michael Nyimaku, Founder of Beige Group.
Mr. Sory told the court that the Detective investigation had established that transactions were made in two categories.
The first category involved the transfer of GH¢320 million from the Beige Bank to BCAM and the chain ended with FASL.
The other category had to do with the transfer of GH¢21 million from FASL to some 10 companies and two individuals.
With the two individuals, Nana Afia Evelyn Kyei and Godwin Nordojo – each given GH¢80,000 and GH¢15,000 respectively.
The Counsel said Evelyn utilised GH¢18,000 of the money of GH¢80,000 and even paid back but PW5 said it was rather GH¢20,000 that was used, with the balance still in her account but embargoed.
Godwin on the other hand stated that all GH¢15,000 was used for the payment of services rendered to the Beige Bank.
The Counsel said Bit Best was among the 10 companies and it received GH¢2 million.
PW5 also told the court that it was Augustine Boakye Yiadom and Yvonne Philips, all former employees of the Beige Group, who signed the transfer of GH¢320 million to FASL but at the instance of Nyimaku, the accused in the trial.
Nyinaku is being tried on 43 counts of allegedly stealing GH¢1.21 billion of depositors’ funds from his bank, fraudulent breach of trust and money laundering.
PW5 stated that GH¢1 million and GH¢6.5 million respectively were caused to Dr Oteng Annane but counsel said they loans advanced by the latter to the accused.
The following are some of the questions and answers that ensued at the court;
Q. Mr. Archer, please take a look at paragraph 13. Now in that paragraph of your witness statement, you identify from investigation of two broad categories which were carried on transactions?
A. That is correct.
Q. Now the 1st category of transactions relates to about GH¢320 million to be transferred from the bank to BCAM on the instruction of Accused Person?
A. That is correct.
Q. Now 2nd category of transactions referred to the sum of about GH¢21 million, which was transferred to 10 companies and two individuals that you testified about?
A. That is correct.
Q. Now for clarity, the GH¢320 million come from BCAM and went to FASL?
A. That is correct.
Q. Now from that paragraph of your witness statement, the conclusion that the transactions were effected by the AP based on the documents that were made available to you?
A. Correct.
Q. Now take a look at paragraph 6 of your witness statement, you confirmed that you received statements that were taken from individuals and also document?
A. Correct.
Q. In paragraph 15 of your witness statement you provide more clarity that the transfer were effect by virtue of internal memo from the bank and approved by Accused?
A. Correct.
Q. Now you have made available to the court the background documents, the transfer from the bank to BCAM?
A. We have those documents and made photocopies.
Q. Now have you also made available to the A-G department the internal memos supporting transfers from BCAM to FASL?
A. Those documents were bulky so we made photocopies and submitted it to the AG.
Q. Finally did you also make available to the A-G by virtue of how the transfers were made to 10 companies and two individuals?
A. All those documents were received from the CCU and we made photocopies and submitted same.
Q. Now you also investigated the 10 companies, which received the funds from FASL. Did you make available to the AG the document which showed what the funds were to be used for?
A. All those document were received and submitted
Counsel: In this trial what we have been shown is a bank statement that shows debit and credit of fund.
Now internal memo in the basis of why each of this transaction were effected from the bank to BCAM and from BCAM to FASL and from FASL to the 10 companies and the two individuals and the documentation have not been made available to us.
Court: Is this different from the email?
Pros: when it comes to the transfer of GH¢320 million we have actually tended every document.
Court: Do you have some and you ask them to produce it… particularise the documents…
Counsel: 1. we want the internal memos and the approvals that supports the debit and credit in respect of the GH¢320 million between the bank and BCAM.
2. The internal memos and approval that support the transfer of fund from BCAM to FASL.
3. The internal memos that support transfer and approval of funds from the 10 companies.
4. We want the document available by the 10 companies and two individuals- Nana Afia Evelyn Kyei and Godwin Nordojor – to explain how the funds were utilised.
Court
Prosecution: the 3rd request, we have rendered these documents in evidence. They are Exhibit L, L1 to L6. The internal memos supporting the transfer and approval of funds from the 10 companies, we only have bank statements but I have not come across internal memos. Whatever we had, we have handed it over.
Court: Let’s give you up to Tuesday. The prosecution is ordered to file documents by 25/7/23 at noon.
Q. From your testimony in this court, it means that there should be about GH¢299 million in the second FASL account. I arrived at this amount by taking out about GH¢21 million, which was transferred to the 10 companies and two individuals?
A. Correct.
A. Of the GH¢21 million that was transferred to the 10 companies and two individuals, about GH¢2 million of it was paid to Bit Best?
A. Correct.
Q. GH¢80,000 was given to Nana Afia Evelyn Kyei?
A. That is correct.
Q. Now Nana Afia Evelyn Kyei explained to you that she utilised only GH¢18,000?
A. If my memory serves me right she mentioned GH¢20,000 and it was left with GH¢60,000.
Q. Which was paid back?
A. She mentioned that it was still in her account.
Q. But she also added that it was in the custody of the Receiver because it was in her account?
A. That is correct, the account was embargoed.
Q. In respect of Godwin Nordojor, he received GH¢15,000?
A. Yes.
Q. He explained that it was paid to various people who rendered services to the bank?
A. Yes.
Q. The document I’m showing you is a letter the Receiver wrote to you about the second FASL account?
A. That is correct.
Q. So this will be Exhibit 37. Now if you look at paragraph 5 of Exhibit 37, the last sentence specifically requests the CID to investigate the GH¢21 million to the 10 companies and 2 individuals. Correct?
A. That is correct.
Q. Now in paragraph 6, the Receiver now sets 10 specific things that the investigation is required to address?
A. That is correct
Q. The first matter the Receiver wants you to investigate was the objective to open the second account for FASL?
A. Correct.
Q. In your investigation the statement of Vanessa Astu and Susan Philips, the account was opened after Beige Group acquired majority shares in FASL?
A. That is correct and that is what we stated.
Q. Did your investigations reveal anything contrary to this information, that was given to you by Susan Philips and Vanessa Astu?
A. They were the very people who created the account and that was exactly what they received from us.
Court: Answer the question.
A. No.
Q. The second one required you to find out specifically why KYC (Know Your Customer) procedure were breaches in opening that account?
A. Yes.
Q. The statement of Thomas Esso confirmed that even before he joined BCAM, it was already doing business with FASL?
A. That is correct.
Q. And Yvonne Phillips and Sussan Atsu all explained in their statements that it was after Beige Group acquired majority shares in FASL that the 2nd account was opened?
A. That is so. Their explanation did not factor that the largest shareholding that was being purchased had not been fully paid for, as they are awaiting the BoG approval.
Q. I’m putting it to you that they knew that the FASL and KYC request of the Receiver was …
A. They were working with FASL as officials of the Beige Group.
A. I further put it to you that the statements of Vanessa Astu and Susan Philips stated categorically that all the proceedings of opening the FASL 2nd account were duly followed?
A. That is so.
Q. The third question required your investigation was to address was the person who authorised the opening of that account?
A. Yes.
Q. And in respect of that 3rd question. Susanna Philips and Vanessa Astu confirm in their statement to the police that it was the CEO of the Beige Group who have acquired majority shares in FASl, who authorised that the account should be opened.
A. That is correct.
Q. The Receiver wanted you to address whether there were any other accounts that were opened?
A. No.
Q. The Receiver also wanted you to find out the reason why they wanted to withdraw the GH¢38 million from the second FASL account?
A. That is so.
Q. I’m referring you to your Exhibit AG. Now AG makes it clear that approval was sought for the payment of fixed term redemption?
A. That is correct.
Q. And Exhibit AH, which is the letter requesting the withdrawal, makes it clear that the recipient of the amount was BCAM?
A. That is correct.
Q. The statement of Yiadom Boakye Augustine is the document I have just handled to you, which was made to the CID. He is the Chief Finance Officer of the Beige Group?
A. That is correct.
Counsel tendered the document through Witness and admitted as Exhibit 38.
Q. Mr Archer, if you take a second look from line 17… Yiadom Boakye Augustine confirms that the withdrawal was necessary to…?
A. That is correct.
A. …provided the letterhead on which the letter from withdrawal of the GH¢38 million was written?
A. Correct.
Q. Now you have testified in the court that Vanessa Astu and Susan Philips have confirmed that they work with the FASL?
A. Correct.
Q. They, therefore, had access to the letterheads of FASL?
A. That I can’t tell.
Q. Now the Receiver also wanted to know who signed the letter for the withdrawal of GH¢38m?
A. That is correct.
Q. And you find out it was Vanessa Astu and Susanna Philips?
A. It was rather Augustine Boakye Yiadom and Yvonne Philips.
A. Also the Receiver wanted to know why customer funds were diverted from BCAM and placed in the second FASL account?
A. That is correct.
Q. Now in respect of this particular aspect of investigation, the statement of Susanna Philips, Vanessa Astu, Thomas Esso and Nana Evelyn Afia all confirm that it was to enable BCAM make placements with FASL?
A. Now the Receiver also wanted to know who authorised the transfers of about GH¢21 million to the 10 companies and two individuals?
A. That is correct.
Q. Now finally the Receiver wanted to know the two individuals who were beneficiaries. Now you find out who those two individuals were?
A. That is correct.
Q. Did you find out who authorised the transfer to the 10 companies and two individuals?
A. That is so.
Q. Now show him the Charge Sheet. What it says against AP is that he dishonestly appropriated in counts… to Sadat Car Accessories. Is that correct
A. I think Sadat Car Accessories is mentioned in count 11.
Q. Is that all?
A. That is so my lady.
Q. Now what it further says is that the accused was entrusted with the funds that were transferred by the bank, which he dishonestly appropriated to Sadat Car Accessories?
A. That is correct in the count.
Q. Now from your investigations, did you find out the process that the accused person caused for this to be transferred to Sadat Car Accessories?
A. Yes.
Q. Accused Person made available to you documents that showed also the purpose for which the transfer was made to Sadat Car Accessories?
A. He availed documents to us, but I can’t recall exact documents as they came in bulk.
Q. Now count 12, Accused Person is also charged with appropriated the sum of GH¢500,000 by causing it to be paid to himself. That is to his Stanbic bank account?
A. That is so as captured in the Charge Sheet.
Q. Did you find out how the bank treated the funds of the Accused?
A. There was no cash in Stanbic bank that was referred to me for investigation.
A. In count 13, he was also charged of having dishonestly appropriated GH¢300,000 paid to himself?
A. That is correct.
Q. Did you find out how the bank treated that payment to the Accused Person?
A. No. As I earlier indicated, the case was referred to me as and when they came and those are the very case I wrote my administrative report on.
Q. Now, Mr Archer, in the document you took from the CCU, there were other documents relating to all of these transactions of which the Accused was charged. Are you saying you did not go through and no specific question was asked on them?
A. I went to the CCU for documents that were presented and those are documents that related to the profiles of the entities which also have the memos that printed to the specific transactions on the accounts
Q. So if you take a look at count 15 & 17, they charge the accused with having dishonestly appropriated GH¢1 million & GH¢6.5 million respectively, by causing the said sums of money to be paid to Dr Oteng Annane?
A. That is so.
Q. You investigated the case of Dr Oteng Annane?
A. That is so.
Q. From your Witness Statement you confirmed from both exhibits that Dr Oteng Annane has advanced loans to accused?
A. Yes.
Q. You provided the loan agreement?
A. Yes. They provided loan agreement.
Q. So the loan agreements fully confirm the relationship between the Accused and Dr Oteng, regardless of the discrepancies?
A. That is correct
Q. You also confirm in your Witness Statement that the Accused Person caused the bank to repay these loans on his behalf?
A. That is correct.
Q. Now in repaying these loans they were recorded in the shareholders account.
A. Yes.
Q. You are aware that the AP is a shareholder of the bank?
A. Correct.
Q. I’m putting it to you that by recording it in the shareholders account the bank recognises it as such?
A. Yes.
A. From your administrative report I did not see any investigation relating to these entities and individuals – Capital Mugreba, Mugriba Venture, Judith Ababio, Joyce Ababaio and Am Car rental. You did not investigate.
A. I did invite some of these people. Some came later.
Q. So these people provided statements and documentation to you to prove why these payments were made to them?
A. Those who came stated so.
Q. Did Mugreba Co. Ltd…
A. I have to confirm when the A-G team were working at the docket I had to quickly invite those people when the list was sent to me.
And those whom we had obtained statements from and those who had documents availed such documents to us, which I sent by dispatch by the team that were working with us. That is how come our administrative records did not capture it.
Q. Which of these individuals did you invite and obtain statements from?
A: ?
Q. Now counts 32, 33 and 40, the accused have been charged with money laundering because he transferred those funds to BCAM to assist him to dishonestly appropriate those funds indicated in those counts by transferring those funds to BCAM for the purpose of assisting him?
A. Count 43, that is so.
Q. In your investigation, Accused Person made available documentation to explain the basis for the transfer of the funds to BCAM?
A. Count 43, no.
Q. Did your investigations reveal how the transfer was made?
A. In count 43, no.
Q. Now counts 33 & 34 of the charges, the sums indicated in those counts that the accused dishonestly appropriated causing the money to be transferred to BCAM?
That is so.
Q. Did your investigations reveal how those sums of monies were transferred to BCAM?
A. No.
Q. But was it part of your investigations.
A. I think Exhibits 34 and 43 quote the same amount…
