Abednego Archer, investigator and fifth prosecution witness (PW5) in the ongoing Beige Group trial, says the Chief Executive Officer (CEO) of the defunct Beige Bank, Michael Nyimaku, operated nine companies and accounts without the knowledge of the signatories.
PW5 alleged that Michael Nyimaku appointed a certain Patrick Ebo Kito to manage Beige and received a transfer of over GH¢38 million to an account ending with 4122 in the name of First Africa Savings and Loans Limited (FASL), but the signatories did not have any knowledge of it.
The witness, giving his evidence-in-chief before a Court of Appeal Judge, Her Ladyship Justice Afia Serwaa Asare-Botwe, at the High Court last Friday, referred to the FASL account opened by Beige Group as fictitious.
He qualified the account as fictitious, as GH¢320 million transferred into the said account were funds of customers of Beige Asset Capital Management (BCAM).
Being led in evidence by Chief State Attorney (CSA) Evelyn Keelson, PW5 read from his witness statement that the transfer of customers’ deposits from BCAM to the fictitious FASL account related to third party transactions and other individuals involving the bank.
After his evidence-in-chief, Thaddeus Sory, Counsel for accused, had the opportunity on the same day to put the witness to test.
The counsel indicated to the court that the account referred to as fictitious was explained to the Commercial Crime Unit (CCU) of the Criminal Investigation Department (CID) that it was opened after all laid down procedure of the bank were followed.
He told the court that the purpose of the supposed fictitious account was for BCAM investment placements.
Mr. Sory questioned the witness as to whether he called for proof of statements made by individuals who were invited during his investigation in respect of the matter.
Although Mr. Archer answered in affirmative, the court heard that no report in relation to the matter was attached to his witness statement.
The counsel also grilled the witness on his financial and accounting knowledge and background.
The following are excerpts of the cross-examination.
Q. Do you have any training in financial accounting?
A. No. I have never done accounting.
Q. And apart from this case that you were involved in investigating, were you involved in any other case related to financial accounting investigation?
A. Yes. I did finance accounting and report at the MSc level.
Q. But have you investigated any matter that related to financial accounting related issues?
A. Yes.
Q. Can you tell us (court) what accounting related investigations you have carried [out] apart from this one?
A. Respectfully my lord, I investigated the case involving a construction company’s account, but I cannot recollect the name off head. It was on constructing roads awarded by the Ministry of Roads and Highways around Effiduase area in the Ashanti Region, which bank account the then MD one Kwesi Asare had embezzled several funds which account was at EcoBank headquarters, Accra.
Q. Do you have any banking experience?
A. No.
Q. But have you conducted any banking-related investigations apart from this one?
A. The only time I conducted bank-related investigations was when I went to EcoBank headquarters in respect of the case involving Kwesi Asare.
Q. Do you have any auditing background or experience?
A. No.
Q. And have you conducted any audited-related investigations apart from this case you are involved in?
A. Yes, I have conducted an investigation where we have to call for auditor reports when those cases were reported.
Q. And by those cases, do you mean this case?
A. In other cases.
Q. From your Witness Statement (WS) your investigation covers a number of areas, such as the supposed suspicious account opened in the name of FASL; the transfer of customers’ deposits from Beige Bank to BCAM; the transfer of funds from BCAM to the supposed suspicious FASL account; related third party transactions and other individuals’ transactions involving the bank?
A. Correct.
Q. For purposes of your investigation, you will not only interview and interact with all individuals involved in the transaction, as well as official of the affected institutions, but also collected documents from them. Correct?
A. That’s correct.
Q. And so in the course of your investigation, where a person made a statement which is supported by documents you call for the said documents as proof?
A. Correct.
Q. Now when you concluded your investigation, you wrote a report indicating your findings?
A. Correct.
Q. That report is not attached to your witness statement, correct?
A. That’s correct. Those reports were written. The cases were in segments, and as when the receiver brings a particular aspect of the case, when I finished with that, report was written with findings, that is how it run through all the cases until they were finally consolidated.
Q. If I may just pray the court to disclose those segment reports. Can you make it available to us before the next adjourned date?
A. Yes.
Judge: You are to file your disclosures by Monday. The prosecution is directed to file further disclosures in respect of reports authored by PW5 in connection with all Beige Bank-related case investigations by July 11.
Q. In paragraph 9 of your witness statement, you made mention of shared purchase agreement which is not attached to your witness statement. Correct?
A. That’s correct.
Q. Show him Exhibit 20. What you hold in your hands is a shared purchase agreement between two entities – First Africa Group (FAG) and the Beige Group – which are seller and buyer respectively?
A. That’s correct.
Q. Is that the shared purchase agreement you are referring to or there is another one?
A. This is the shared purchase agreement I referred to.
Q. From the parties to the agreement you are looking at in Exhibit 20, it was clear contrary to what you said in Paragraph 11 – the purchaser of the shares is the Beige Group and not Beige Bank contrary to what you stated in your witness statement?
A. That’s correct. I suppose there was a typo error. It should have read the Beige Group.
Q. I’m putting it to you that contrary to what you are saying in Paragraph 11 of your witness statement, the signatories of FASL account were representatives of the two parties stated in Exhibit 20 – that are the First Africa Group and the Beige Group, and not the Beige Bank?
A. That’s correct. I can recall counsel said Beige Bank is part of the Beige Group.
Q. I am putting it to you that the Beige Group and Beige Bank are different.
A. That’s correct.
Q. As part of your investigation, in Exhibit 20, did you make any findings regarding the defect on the management of FASL?
A. Because of the shared purchase agreement, Beige Group had sent its representatives to work with FASL, so the representatives had the opportunity to work with FASL as a result of the shared purchase agreement.
Q. I’m putting it to you that by that shared purchase agreement there were three crucial dates – commencement date, transitional period and cut-off date. I’m putting that to you.
A. Respectfully my lady, I don’t know how counsel segregated it, but all I know is that there was a shared purchase agreement between the FASL and the Beige Group.
Q. I am further putting it to you that from the transitional period, which started from the commencement date to the cut-off date, officials from Beige Group were to commence full responsibility of FASL after 90 days?
A. What I knew is that the shared purchased is 90% and part payment for and, for that matter there couldn’t have been full takeover responsibility.
Q. I’m further putting it to you that the transitional period, as per the Exhibit 20, was not to last beyond 90 days from the date of commencing?
A. I’m not aware of that.
Q. I’m also putting it to you that after the transitional period of 90 days of day of commencement, there was a cut-off date by which time official of Beige Group are to take full control of responsibility of FASL?
A. I’m not aware.
Q. I’m further putting it to you that by December 2017, the transitional period was over, and officials of Beige Group, in accordance with provisions, took over full control of FASL and management?
A. I knew they were waiting for Bank of Ghana’s approval, but I don’t know if they had taken full control as at December 2017.
Suspicious FASL Account
Q. You also talked about the suspicious FASL account. Can you tell the court when it was opened?
A. The specific date is not mentioned, but the account number is captured in Paragraph 12.
Q. In other words, you don’t know the date when the suspicious account was opened?
A. If I refer back to Suzana Philip’s statement since she was an official; I could get the actual date.
Susanna indicated she had the instructions from Vanessa Atsu to open the account on March 14, 2018.
Q. The statement you are looking at is dated September 12, 2018?
A. Yes.
Counsel tendered the document in evidence through witness.
Q. Please give it back to him. If you look at the second page of that statement, starting from about the 10th or 11th line, Susanna told the (CCU) Commercial Crime Unit of the CID that the account was opened after all laid down procedure of the bank were followed?
A. Read what was there which says account was opened after the official documentations were met.
Q. Look at the next line which was that [the] account directly linked to the FASL operational account. Is that correct?
A. That’s correct.
Q. She also made another statement to the Special Investigation Team (SIT) dated January 18, 2019?
A. Yes.
Counsel tenders the document through the witness.
Q. If you look at the second page, from about the seventh line, Susana explained to the SIT where you (witness) [stated] the purpose of the account, which you called suspicious, was to receive placement from BCAM. Is that correct?
A. It was a reported speech from Yvonne Philip; if I could be allowed to read. … I then confirmed from Yvonne Philips, who was also a signatory to the account, and she confirmed the account to be open and stated the purpose was for BCAM investment placement.
Q. So my question to you is it was clear that the purpose of the account you called suspicious was for BCAM investment placements?
A. Per the assertion of Susanna Philips who opened the account, that’s correct.
Q. Please, look at your statement again, and [the] one written by Yvonne Philips dated September 7, 2018 written to the CCU (Commercial Crime Unit) of the CID.
A. Yes.
Tendered through him.
Q. If you read from line 17 to 25 of the second page of Yvonne Phillips’ statement, it explains how the second account was opened.
A. Reading: “A second account had been open after informing the responsibility officer, Vanessa Atsu… to proceed with the account opening upon instructions from the CEO.”
Q. So the procedures were surly followed. I’m putting that to you.
A. This is the account of Yvonne Philips to the police.
Q. From line 28 of that statement, Yvonne Philips then told the police that she became aware that BCAM made placements into that account?
A. Reading: “I have been made aware that some funds have been made to BCAM.”
Q. It is correct that BCAM placed funds into that the second account, which you called suspicious?
A. Per the statement of Yvonne Philips, that is what it says.
Q. I’m putting it to you that from Exhibit 26 to 28 it is clear that what you say in Paragraph 12 of your witness statement – that the second account was opened without the consent of FASL management – is not correct?
A. Respectfully my lady, these account, as read out, are accounts from personnel who worked with Beige, and they gave these accounts to the police, both at the Commercial Crime Unit and SIT.
Q. These personnel are also personnel of FASL, which is clear in your witness statement?
A. I did say that Vanessa Atsu was at FASL and represented the interest of the Beige Group.
Case adjourned to July 14.
