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Mahamas’s AG Rejects Akufo-Addo’s Award

By
MAXWELL OFORI
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The decision by the revered Attorney-General and Minister for Justice under the erstwhile John Mahama’s administration, Marietta Brew Appiah-Oppong, to reject a national honour for her sacrifice to the nation has sparked controversy.

Marietta and Fui Tsikata, who unconfirmed report says rejected the award as well, had been nominated by the state for a national honor, together with others for helping the country to secure its western border and oil deposits at the International Tribunal for the Law of Sea (ITLOS).

The two legal practitioners led the process to institute the action at ITLOS, during the presidency of John Dramani Mahama.

Following the tremendous exhibition of legal prowess at the hearing of the case in Germany, the tribunal ruled in favour of Ghana, rejecting almost all the reliefs sought by her neighbor, Cote d’Ivoire.

Though the victory occurred in 2017, the government held an event on Tuesday, March 14, 2023 to show the appreciation of Ghanaians to the team, but Madam Marietta Brew Oppong neither showed up, nor sent a representation.

According to sources, though the Planning Committee named her, among others for the honors, she wrote to the committee to reject it. But for Lawyer Fui Tsikata, sibling of popular Lawyer Tsatsu Tsikata, this paper is not privy to the reasons he cited for allegedly rejecting the award.

MARIETTA’S REASON

According to information available to The Chronicle, the committee received a letter from Mrs Marietta Brew Appiah-Oppong, which indicated why she rejected the national honor.

The Chronicle has been informed that the astute lawyer claimed the awardees were not a true reflection of the legal team that secured the victory.

This information was not utterly different from what had been making rounds in political circles, including from members of the opposition that she tabled some  demands, but the committee could not meet it, hence the rejection.

The Chronicle also noticed that others like Gloria Akuffo, who was the Attorney General during the day of the ruling, as well as Lawyer Anthony Akoto-Ampaw, were also not present at the event, but had representatives who received the awards for them.

AWARDEES

The awardees in the category of the Order of Volta – Companion; ITLOS Main Legal Team are;

Mr. Godfred Yeboah Dame, Mr. Joe Ghartey, Miss Gloria Afua Akuffo, Mr. H. Kwasi Prempeh, Mrs Helen Awo Ziwu, Miss Jane Aheto, Miss Pearl Akiwumi-Siriboe, Mr Godwin Djokoto, Miss Vivienne Gadzekpo, Mrs Sylvia Adusu, Prof. Dominic Pobi and Mrs Lawrence Apaatse.

Meanwhile, a section of Ghanaians who shared their opinions on the rejection, described it as unfortunate, while others commended her act.

REOCCURRENCE

It would be recalled that the political party which Marietta belongs to, the National Democratic Congress (NDC), in 2008 issued a statement which urged all party officials to “decline the awards, even as they may have individually acknowledged their nominations. At the time former President Kufuor was set to honor some Ghanaians.”

The statement, signed by the then General Secretary of the party, Johnson Asiedu Nketiah, the NDC claimed the decision was not meant to offend the State of Ghana, or the Presidency, but said accepting the award would not have been different from condoning “hypocrisy and deception” of the then government.

According to the statement signed by General Mosquito, who is the current national chairman of NDC, the list of award winners revealed a “cynical ploy” to confer State honors on then President Kufuor and his cabinet.

Meanwhile, it is not clear whether the decision given to the committee, as picked up by this paper, truly represents the reason for her rejection, or as referenced above, it was to exempt themselves because it was not an NDC government that conferred the honors.

Editorial: Re-introduction of the road tolls will serve our own interest 

By
THE CHRONICLE
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Editorial

The Daily Graphic reported yesterday that the government was taking steps to reintroduce road and bridge tolls to shore up domestic revenue. According to the state-owned newspaper, the reintroduction will also come with an upward adjustment in the tolls by an average of 88.5 per cent, including outliers of 400 per cent, the highest percentage increase, and 33.33 per cent, the lowest increment.

The paper further reported that the Ministry of Finance had made a proposal on the new rates to include in a new Legislative Instrument (LI) to amend the Fees and Charges (Miscellaneous Provisions) Act, 2022, (Act 1080).

Under the amended law, cars previously paying 50Gp must pay GH¢1:00, whilst pick-ups, light duty trucks and mammy wagons will pay GH¢1.50, up from the previous GH¢1.

Heavy duty buses and light goods trucks will now move away from paying GH¢1.50 to GH¢2, while medium goods trucks (three axles) and heavy duty goods trucks (four axles) will now pay GH¢3, up from the GH¢2 they were paying before the collection of tolls on major highways and bridges was abolished.

Other proposed increments are, heavy goods trucks which have five axles or more will now pay GH¢3.50, up from GH¢2.50, whilst motorbikes will now pay 50Gp, up from 10Gp, with agricultural tractors, with or without trailers, paying GH¢1, up from 50Gp.

The Chronicle is happy that at long last the ministries of Finance and Roads and Highways have seen the wisdom in re-introducing the road toll. The toll, before its abolishment, was reportedly raking in GH¢78 million a year, but because of the Electronic Transaction Levy (E-Levy) the government was about to introduce, an ill-informed decision was taken to abolish it.

Now that the government has failed to rake in the anticipated revenue from the E-Levy, it has decided to bring back the road toll. In our view, if the government had listened to constructive criticisms about the abolishment of the road toll, it would have avoided the current situation where it has to do another public education for the acceptance of the new tax.

Nevertheless, we fully support the re-introduction of the tax, because all over the world roads and bridges are tolled to raise revenue to maintain them. As a Third World country, where our expenditures far exceed the total revenue we collect in a given year, this is the best way to raise money to maintain the roads, and also construct new ones.

Even with the current proposed rate, it will still not be enough to maintain all our roads. As we indicated earlier, the old toll was fetching us roughly GH¢78 million a year. With the new rate, we are likely going to collect GH¢150 million annually.

According to the Ministry of Roads and Highways’ own figures released in 2021, “Surface dressed road cost $300,000 – $900,000 per kilometre (depending on the number of seals and base material). Asphalt overlay costs $200,000 – $250,000 per kilometre.  Interchanges cost                        $10,000,000 – $55,000,000 per kilometre, and reconstruction asphalt costs $1,200,000 -$1,400,000.

Looking at the current cedi-dollar volatility, the above figures might have already hit the roof. One can, therefore, imagine what a ‘mere’ GH¢150 million, which is expected to be generated from the new road tolls, can do for us when it comes to road construction.

The best thing to do in order to raise more funds from road tolls is to introduce a flat rate for all cars registered with the Driver and Vehicle Licensing Authority (DVLA) as road toll. Unfortunately, the law does not allow that, because road tolls are usable taxes and a vehicle that does not use a tolled road cannot be forced to pay the tax.

The Chronicle is, therefore, proposing to the proponents of the new Legislative Instrument (LI) to amend the Fees and Charges (Miscellaneous Provisions) Act, 2022, (Act 1080), to include the right to collect road tolls from all cars or vehicles, whether they use the tolled roads or not. This way, enough money will be raised to tackle, head on, the numerous challenges confronting the roads sector.

We shall return to this subject.

Accra Commando, KON others honoured for fighting Covid-19

By
MAXWELL OFORI
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Mr Henrry Quartey receiving his award from President Akufo-Addo
Mr Kojo Oppong Nkrumah being decorated with his award

Thousands of individuals and organizations, including the Greater Accra Regional Minister, Henry Quartey (alias Accra Commando), the Minister for Information, Kojo Oppong Nkrumah, Director General of the Ghana Health Services, Dr Patrick Kuma Aboagye have been honored by the State for their excellence, creativity, innovation and hard work.

These individuals and organisations were nominated by the State for various rewards for the sacrifices they made to help the state fight against the COVID-19 pandemic.

Out of the over 20,000 that were honoured, 19,557 were frontline health workers across the country.

However, a few were made to receive their honors at the Accra International Conference Centre, whilst the majority would be honored at their various districts.

Other awardees were manufacturers of hand sanitisers and personal protective equipment, donors to COVID-19 national trust fund (GH₡1 million and above), the COVID-19 national taskforce and international partners.

Nominees for the COVID-19 National Taskforce were Dr. Anarfi Asamoa-Baah, Dr. Nsiah-Asare, Dr. Kwaku Agyeman-Manu, Dr. Patrick Kuma-Aboagye, Dr. Franklin Asiedu-Bekoe,     Dr. Kwame Amponsah-Achiano, Dr. Badu Sarkodie and Prof. William Ampofo.

The rest were; Mrs. Delese Mimi Darko, Dr. Da-Costa Aboagye, Prof. Yaw Adu-Gyamfi,                Mr. Kojo Oppong Nkrumah, Mr. Henry Quartey, Dr. Benard Okoe-Boye, Miss Emma Lilian Bruce-Lyle, Mr. Joshua Yaw Kyeremeh and Miss Elizabeth Akua Ohene.

Nominees for the Trustees of the COVID-19 private sector fund were; Mr. Anthony Oteng-Gyasi, Mr. Edward Effah, Mr. Senyo Kwasi Hosi, Mr. Kwaku Bediako, Mr. Daniel Nii Kwei-Kumah Sackey and Mr. John Eric K. Taylor among others.

The inventor of the famous Veronica Bucket, Mrs. Veronica Bekoe, was also awarded, as well as media personality, Umaru Sanda.

NATIONAL HONORS

Whereas some awardees received certificate and plaques, others were honored with the Order of the Volta – Companion, made up of a medal and a sash.

The insignia consists of a medal which is a seven-pointed star 45 mm in diameter suspended on a ring and worn with a ribbon collar, together with a sash, a pendant and a rosette.

GRAND MEDAL

Some received the grand medals, which is an overall medal in silver with a size of 38mm high, 33mm wide, a ribbon of 32 mm wide, a blue background, a 3mm black and 3mm white stripe in the centre and 3mm red at the ends.

CEREMONY

The atmosphere at the Accra International Conference Centre, the venue where the ceremony was held, was very joyous as families and friends of the awardees cheered them up.

The enthusiasm with which guests carried themselves throughout the over three hours event gave a true meaning to the brain behind the event.

Amongst the guests were the Vice President, Dr. Mahammudu Bawumia, the Chief of Staff, Madam Fremah Osei Opare, the Inspector General of Police, Dr Akuffo Dampare, the Defence Minister, Dominic Nitiwul, as well as the National Chairman of the ruling New Patriotic Party and the General Secretary.

The music from the ever-green Winneba Youth Choir refreshed the moods of the guest, interspersed with tunes from the Ghana Police Central Band.

NATIONAL EVENT 

The President, in an address, which preceded the presentation of the awards, said the honors were purely a national event, devoid of partisan, ethnic or religious considerations.

He stated that it was organised solely for the recipients whose work and contribution had benefited the country.

The president recounted the difficult times and the comprehensive strategy the government adopted to secure the priority, health and safety of the Ghanaian.

He said the country was in serious times when “we were restrained from shaking hands with one another, keep a distance from one another and put up with the discomfort anytime we left our homes”.

Stating why the awardees needed to be honored, President Akufo-Addo spoke about the necessary three-week lockdown and the need to support small and individual businesses, shutting down and opening some schools at various intervals, the procurement of PPE and relief for health workers in the form of tax waivers, allowances and COVID insurance.

CIMG amplifies and champions the need for rights of consumers

By
JENNIFER AMBOLLEY
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Dignitaries present at the event

The National President of the Chartered Institute of Marketing, Ghana, Mr. Kasser Tee, yesterday emphasised on the importance of amplifying and championing the need for the rights of consumers.

He made this known in his address during the World Consumer Rights Day under the theme, “Empowering Consumers Through Clean Energy Transitions”, in Accra.

Mr. Kasser Tee disclosed that consumers must understand that they had the right to be heard and the right to redress.

“We must proceed from here to recognise that consumers have certain fundamental rights, including the right to safety; the right to be informed; the right to choose; the right to be heard; the right for a pollution-free environment, etc,” he said.

Moreso, he added that when consumers were satisfied with an organisation’s products or services, there would be fewer complaints, and consequently, decreased lawsuits.

As a marketing professional body, which is mandated under section 3 of the Chartered Institute of Marketing, Ghana Act 2020 (Act 1021), Dr. Kasser Tee said there was the need to amplify the importance of consumer rights, and the need for continuous discussions in order to make positive impacts in the lives of consumers in Ghana.

He noted that consumer rights issues must always be addressed and as such it is time for enacting legislation to protect consumer rights in Ghana.

He promised that his outfit would continue to lead the conversation, and continue to amplify and champion the rights of consumers.

Mr. Tee urged all organisations, including civil and public service entities and central government, to acknowledge and respect these rights unconditionally.

A Chartered Marketer and Lawyer, Rev. Manford Gyansa-Lutterodt, who also graced the occasion, emphasised on the legal implications of curtailing the right of the consumer, and also addressed the fact that consumers also had rights.

“Once there is a contract of sale between a seller and a buyer, then it creates some rights, duties, obligations for the parties. This in the long run creates some legal relationship between them.”

He further added that there was the need for the corner shop trader and the market woman/man as well utility service providers, and government and private agencies to respect these rights.

My gov’t is a natural cheerleader for the private sector -President

By
MAXWELL OFORI
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President Akufo-Addo (3rd from left) being assisted by Samuel Abu Jinapor (left), Caretaker Minister of Trade and Industry, to cut the tape to commission the GB Foods factory at Kpone, Tema.
A long stretch of the GB Food factory at Kpone.

President Akufo-Addo has said that the government he leads is a natural cheerleader for the private sector.

According to him, it was for that reason his government, since assuming office, had rolled out measures to create a business-friendly environment.

The President also said his administration acknowledged the inability to create sufficient jobs on its own, thus, the importance of putting measures in place“to reduce the cost of doing business and improve the business environment.”

He further stated that the goal of his government for the private sector remained constant, regardless of the global economic upheavals.

This goal, he said, was “to unleash the innovative and entrepreneurial instincts of the Ghanaian private sector to drive rapid growth and job creation. I am confident that we will realise this important goal.”

President Akufo-Addo was speaking on Tuesday, March 14, 2023, at the commissioning of the factory expansion of GB Foods, Tema branch.

The President was excited about the prospect that the expansion of GB Foods would influence the company’s decisions, “not only to source domestically its raw material base, but also to venture into the establishment of two industrial farmlands for the processing of tomato concentrate,” and hoped that “many more companies would commit to such a development.”

“The government I lead is a natural cheerleader for the private sector, and it is my sincere wish that GB Foods and, indeed, the Ghanaian private sector, will continue to invest further in Ghana. Cascading investments in our economy is the most effective way to expand and strengthen it in order to create the many jobs our young people so ardently want. It will happen, and soon,” he indicated.

GB FOODS

GB Foods is a leading food manufacturing company and producers of Ghana’s Gino and Pomo range of products.

At a total cost of $5 million, the company expanded its production line by commissioning a state-of-the-art tomato canning line in Tema.

It is aimed at reducing the amount of raw materials imported in the manufacturing of the company’s products, thereby offering more employment opportunities to Ghanaians.

Commission the production line, Arthur Carrula, President of Agrolimen, parent company of GB Foods, said the company was committed to investing in Africa and Ghana.

“With the support of the Ministry of Food and Agriculture and Ministry of Trade and Industry, we are working to identify locations for two contiguous farmlands of 7,000 acres each, on which we will construct two industrial farms, each with an integrated factory to process tomatoes, we will sell in Ghana and also exports to other African countries, taking advantage of the African Continental Free Trade Agreement.

“We estimate that on completion of these two projects, GB Foods would have invested over $70 million of investments and create over 5,000 jobs, earn FX for Ghana,” he said

On his part, the General Manager for GB Foods Ghana, David Kofi Afflu, said the company will continue to invest and help expand Ghana’s economy.

“Apart from the tomatoes processing line, this state-of-the-art facility also has a curry processing line. We believe in Ghana and remain committed in driving investments to grow our footprint in the county. Today’s commissioning is a demonstration of our deep level of commitment to this cause and we shall not relent on this effort,” he stated.

I’ll wean Ghana off of the IMF -Akoto

By
admin
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Dr Owusu Afriyie Akoto

The immediate-past Minister of Food and Agriculture, Dr. Owusu Afriyie Akoto, has said that his agenda to be President of the Republic of Ghana is to exploit the prospects of the four new institutions he has assisted in establishing to wean the country off the IMF and other international donor bodies.

The institutions, he noted, are the Tree Crop Development Authority (TCDA), Grains Development Authority (GDA), Horticultural Development Authority (HDA) and the Poultry Development Authority (PDA).

Interacting with Asaase Radio on Wednesday, March 15, 2023, on why he wanted to be President, Dr. Afriyie Akoto said the four new institutions, if properly taken care of and the prospects well exploited, would give Ghana a new look, where the economic foundation would be stronger to withstand any shock that may come its way, and also generate enough revenue to fund other developmental projects.

However, he said, for him to achieve this, he must first cross the hurdle of the flagbearer contest of the New Patriotic Party (NPP), a position he was vehemently lacing his boots to contest for.

A similar remark he made when he appeared on PM Express on Tuesday, March 14, 2023, has attracted some criticisms from his political opponents, with many trolling him on social media on where his allegiance would be.

But, Dr. Afriyie Akoto said he was unfazed by the negative criticisms, only that it should be constructive. He added that he was focused on going through the process, believing that when he gets the nod to lead the NPP, and subsequently become the President of the Republic, agriculture would be his number one priority.

“There is something unique about the Akufo-Addo government. [A] Major part of the foundation has been laid. An institution like COCOBOD – from 1947 no commodity authority had been created, but now we have the Tree Crop Development Authority.

We have the Grains Development Authority, which is in Parliament, [and] expected to be passed into law.

We have the Horticultural Development Authority and the Poultry Development Authority to specifically tackle the areas of development in these sub-sectors. These are specific areas that are going to be the new phase in our development.

I think that if we look well after these institutions, Ghana would be out of the clutches of the IMF and other international donors forever and ever, because we would be able to generate all the foreign exchange and other local resources to fund development in industry, the social sectors of the economy like health, education and infrastructure,” he noted.

He added: “We have the capacity in agriculture to do that. So, we need to take care of that, and we need to bring these into being. This is my agenda to be President of Ghana – to drive this new face of our development, based on the foundation that we have laid.”

Explaining the rationale behind his decision, he said the Tree Crop Development Authority, for instance, when properly developed, would generate a combined potential of export earnings of between US$6 to US$12 billion annually after 8-10 years of implementation.

The Grains Development Authority, on the other hand, would provide support to farmers and buy the excesses and store it for use in the lean season.

When quizzed on why there would be much focus on the agricultural sector more than the other sectors of the economy, Dr. Afriyie Akoto, also a former Member of Parliament (MP) for Kwadaso, said the other sectors would be given equal attention, but noted that he would prioritise the allocation of funding to the agricultural sector in order to generate more revenue to fund the others.

“The other sectors need funding. We’ve been borrowing to fund these sectors and that is why every now and then, we find ourselves in the clutches of the IMF. We’ve been to the IMF seventeen (17) times in our 66-year history and I want to make sure that this does not happen again. And we can only do so with these new face institutions.

Cote D’Ivoire with five tree crops of cashew, cocoa, coffee, palm-oil and rubber are doing US$7 to 8 billion a year. Ghana with the same crops is giving us less than US$2billion and we have all the endowments than Cote D’Ivoire in these areas,” he underscored.

In the view of Dr. Afriyie Akoto, the establishment of the four new institutions will propel agriculture to greater heights such that there would be enough to fund the other sectors of the Ghanaian economy without having to go and borrow money that comes with huge interest rate.

He said for more than 100 years, Ghana has been mining gold and some other mineral resources but the change effect has been slow, leading to the country into the hands of the Bretton Woods institution whenever there is a distress in the economy.

“From what I have seen in six years managing the agricultural sector, I am confident that the Ghanaian farmer can deliver us forever from the clutches of the IMF. When you give the Ghanaian farmer incentives in the form of farming inputs and fertilizer, he goes the extra mile to produce more and that is what I will encourage when I become President,” he noted.

By Stephen Odoi-Larbi

Sene East Assembly supports Persons Living with Disabilities

By
FRANCIS OWUSU-ANSAH
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The DCE G.J. Gyimah, (R) making the presentation
Beneficiaries in a group photograph with assembly officials

The Sene East District Assembly, through the Department of Social Welfare and Community Development, has disbursed the 3% share of the Common Fund meant for People Living With Disabilities (PWD).

The disbursement is in the form of the distribution of corn grinding machines, sewing machines, deep freezers, wheelchairs, and cash.

The District Chief Executive (DCE), Mr. G.J. Gyimah, who, on behalf of the Assembly and the Department of Social Welfare And Community Development, did the presentation, noted that the government intended to sustain such support programmes to mitigate the vulnerability PWDs face in society to improve their livelihoods.

He asked them to desist from complaining of not getting jobs, but rather acknowledge the support given by the government and put them to worthy use to better their lives.

The beneficiaries were advised to be ambitious, steadfast, and patient to grow their businesses successfully to be able to cater for their families.

Mr. Majise Zack, Sene East District Director of Social Welfare snd Community Development, said that his outfit would monitor them to make sure all the disbursed items were put to good use, to help improve their standard of living.

Some of the beneficiaries expressed their gratitude to the government and the Sene East District Assembly.

104 PWDs benefit from Disability Fund

By
FRANCIS OWUSU-ANSAH
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Mr. Emmanuel Bukari (l) presenting a fridge to one of the beneficiaries
Some of the items donated

One hundred and four persons with disabilities in the Atebubu-Amantin Municipality in the Bono East Region have benefited from some income generating support items and cash at a brief ceremony in Atebubu.

Welcoming the beneficiaries to the ceremony, the Municipal Director of the Department of Social Welfare and Community Development, Mr. Emmanuel Bukari, said about 900 disabled persons were currently registered with his outfit.

He indicated that the fund had assisted the disabled in the municipality in diverse ways, including education and healthcare, adding that it was currently supporting two blind persons at the University of Cape Coast.

Mr. Bukari reminded all that section 37 of the Disability Act made it an offence for anyone to mock a disabled person using his or her infirmity, and urged service providers to consider the needs of the disabled when planning their activities.

Making the presentation, the Municipal Chief Executive (MCE), Mr. Edward Owusu, said the government, out of concern for the welfare of the disabled, increased their share of the Common Fund from two to three percent on the assumption of office in 2017.

He urged all who had not benefited under the current arrangement to exercise patience, since they would eventually have their turn.

The MCE asked all potential beneficiaries who had not registered with the Department of Social Welfare and Community Development to do so.

Twenty beneficiaries went home with deep freezers, with two, each receiving block making machines, fufu pounding and knitting machines, while one has an oven and a gas cylinder.

Twelve beneficiaries who intended to get into various vocations received hair dryers, weaving tools, welding and sewing machines, together with cash, ranging between GH¢1,000 and GH¢1,500, to pay for their apprenticeship.

One beneficiary received GH¢4,500, and 23 others received GH¢2000 each, to pursue petty trading, while 10 beneficiaries took home GH¢2,000.00 each for crop farming, with nine receiving GH¢1,200.00 each for animal farming. Twenty-two others received support for education and healthcare.

Mr. Sulemana Shaibu, Chairman of the local branch of the Ghana Federation of the Disabled, on behalf of the beneficiaries, thanked the government and the Municipal Assembly for the gesture, and urged parents and guardians to desist from hiding their disabled children from the public, since they may have some potentials in them which could be unearthed given the needed support.

Nana Kwabena Kyere, Adontenhene of the Atebubu Traditional Area and acting President of the Atebubu traditional Council, who chaired the function, urged the beneficiaries to put the items to the intended use to benefit themselves and their families.

Techiman Municipal Assembly to develop comprehensive drainage system to address flooding

By
FRANCIS OWUSU-ANSAH
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Benjamin Yaw Gyarko, Techiman South MCE

The Techiman Municipal Chief Executive (MCE), Mr. Benjamin Yaw Gyarko, has given the assurance that the Assembly was developing a comprehensive drainage system in the Techiman township to tackle the perennial flooding.

He said the municipality was a beneficiary of the World Bank-funded Ghana Secondary Cities Support Programme, saying very soon the municipality would witness well improved drainage systems.

Mr. Gyarko added that the municipality was also designing a well-structured development plan under the programme, indicating that the Assembly had targeted and was improving access roads as well.

Some of the beneficiary roads include Abuoso community roads, Ahenebronuso Nana Anena market area roads, and Twimia-Kuase, as well as the Twimia-Nkwanta roads.

Mr. Gyarko expressed worry that flooding had become an annual ritual in the municipality, submerging houses and causing extensive damage to properties, partly due to the poor drainage systems.

He, therefore, advised the people to refrain from putting up structures and residential accommodation on waterways, and urged those who already live in flood-prone areas to relocate to protect themselves and their properties.

Mr. Gyarko said the Assembly was working closely with the National Disaster Management Organisation and the Ghana National Fire Service, as well as the Environmental Protection Agency, to see the possibilities of ending flooding in the municipality.

BCAM, Beige Bank had agreement on depositors’ fund -Nyimaku

By
BERNICE BESSEY
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Michael Nyinaku, Founder and Chief Executive Officer (CEO) of the defunct Beige Bank Group, has explained the rationale behind the transfer of depositors’ funds to the account of a subsidiary company, Beige Capital and Asset Management (BCAM).

According to him, there was an agreement between BCAM and Beige Bank to the effect that depositors’ funds with the bank would be transferred to the former, if the investment interest exceeded the banking borrowing rate, adding that this was explained in his response to the Receiver’s query.

He made the statement through his Counsel, Thaddeus Sory, while crossing examining the prosecution first witness (PW1), Julius Ayivor, who also is a lead team member of the Receiver on Monday this week.

The case is being held by the Economic and Financial Division of the Accra High Court, presided over by Justice Afia Serwaa Asare-Botwe.

Mr. Ayivor, in response, said the statement was not entirely correct, because the answer provided by Mr. Nyimaku indicates that, yes, they (Beige Bank) had an agreement with BCAM, where they would transfer to BCAM deposits that came with a cost that was above the bank’s borrowing rate.

He continued: “He (Mr. Nyinaku) did not say they had an agreement with BCAM, where they will transfer customers’ deposits to BCAM.”

This answer was followed by a question from the Counsel: “From your understanding of what the accused (Mr. Nyimaku) said, could these deposits come from any other place apart from the bank?”

Nevertheless, the witness indicated that the funds were customers’ deposits held with the bank, and those funds were not the bank’s deposits.

The Counsel maintained that the accused had explained to the Receiver how customers’ deposits with the bank were transferred to BCAM, but PW1 answered that it was true, and he had even explained the circumstances leading to the transfers of deposits placed by customers of Beige Bank to BCAM, with the knowledge and instructions of the customers.

Question: Is that Exhibit AB4?

Answer:  He did not state that, but that is the fact.

Question: Please, look at Exhibit AB4 and tell the court which part of the statement you are referring to.

Answer: What the bank would tell the customer is ‘we are sorry, we can place this investment at that investment rate.’ If the bank so wish, it will refer the customer to another entity. The bank wouldn’t take deposits and transfer to another entity owned and controlled by the CEO of the same bank. If that happens, it would be siphoning money from the account of that custom to another entity to the benefit of the CEO.

With all the examples provided when the accounts of the customers were debited, the amount of BCAM was credited giving BCAM access to those credit. All those credits were appropriated by BCAM and the balance has only over GH¢500,000 and some pesewas from August 9 when the licence was revoked.

Background

Mr. Nyinaku has been charged with stealing, fraudulent breach of trust, and money laundering, which he denied in court.

His Beige Bank license was revoked by the Bank of Ghana (BoG) on August 1, 2018, and placed it in receivership.

A review of the financial and other records of the bank, conducted by the Receiver and his team, identified several suspicious and unusual transactions, which were subsequently reported to the law enforcement agencies for investigation.

The facts before the trial court indicated that between 2015 and 2018, the accused person, as CEO of the Bank, used various means to transfer huge sums of monies to companies related to him and for his personal benefits.

The funds transferred to BCAM were depositors’ funds lodged with the Beige Bank.

Thus, between 2017 and 2018, Nyinaku caused the transfer of GH¢10,071.00 fixed deposit account held with Beige Bank, in which various customers placed a total of GH¢448,636,210.21, to Beige Capital Asset Management Limited (BCAM) without the knowledge and consent of these customers.

BCAM is a limited liability company wholly owned by the Beige Group Limited (Beige Group), an entity which, in turn, is wholly owned by the accused person.

Investigations also revealed that the accused person, between 2017 and 2018, caused the transfer of 35 fixed deposit investments of 23 customers of Beige Bank, valued at GH¢141,042,348.92, to the Beige Group, a company wholly owned by the accused person and its majority shareholders of Beige Bank.

Further investigations revealed that in March 2018, the accused person caused a fictitious second account to be opened in the name of First African Savings and Loans (FASL), an existing account holder with Beige Bank, without the knowledge of the Board and Management of FASL.

According to the facts, the accused person then caused the transfer of the sum of GH¢320 million from the accounts of various Beige Bank customers into the bank accounts of BCAM held with Beige Bank.

The GH¢320 million was subsequently transferred from the BCAM account held with the Beige Bank into the fictitious FASL account that had been opened in Beige Bank’s books on the instructions of the accused person.

Therefore, between March 2018 and August 2018, GH¢21,123,270.96, out of the GH¢320 million, was transferred from the fictitious FASL bank account to some two individuals and ten companies, nine of which are related to Nyinaku, on his instructions.

Again, between 2015 and 2017, the accused person, through the use of payment vouchers, caused the sum of GH¢1,465,000.00 of depositors’ funds lodged with Beige Bank, to be paid to himself and other persons, the court heard.

These transactions were recorded in a general ledger account of the bank, described as Directors’ Account, adding that it came out that the accused person, through the use of payment vouchers, e-mails and memos, caused a total of GH¢20,599,052.58 of depositors’ funds lodged with Beige Bank to be transferred to a number of a general ledger account of the bank, described as shareholders’ account.

Additionally, that between 2016 and 2017, the accused, through the use of payment vouchers, caused a total amount of GH¢141,742,087.70 of depositors’ funds lodged with Beige Bank to be transferred to a number of companies and individuals for his benefits, he said.

Furthermore, these transactions were recorded in the general ledger account of the Bank, described as Prepayment: Project Work Account, since between 2017 and 2018, the accused person, through the use of payment vouchers, e-mails, memos, further caused the sum of GH¢118,076,813.09 of depositors’ funds lodged with Beige Bank to be transferred to a number of companies and individuals, for his benefit.

These transactions were also recorded in a general ledger account of the bank, described as Beige Group Account.

The court heard that investigations had established that the money the accused allegedly dishonestly appropriated from the Beige Bank remained unpaid as at August 1, 2018, when the Bank’s license was revoked by the BoG.

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