Home Business Receiver sues ex-Beige Bank CEO, demands ¢1.3bn refund

Receiver sues ex-Beige Bank CEO, demands ¢1.3bn refund


The Receiver of the defunct Beige Bank, Nii Amanor Dodoo, has gone to court docket to retrieve about ¢1billion from the former CEO of the financial institution, Micheal Nyinaku and 12 of his subsidiary providers.

The writ which was submitted at the Accra Large Court is also trying to find an purchase to get around several landed attributes and automobiles belonging to Mr Nyinaku and his subsidiary firms.

The receiver is trying to find to take possession of about 10 landed attributes and about 165 vehicles and devices.

According to the writ, the houses were being obtained with money from the defunct lender, whose license was revoked the Bank of Ghana final calendar year.

The receiver is, as a result, also searching for an get from the courtroom to prevent Nyinaku or any or his privies from providing the qualities or any asset of the defunct financial institution.

The writ was submitted by counsel for the Receiver, Ace Ankomah.

Illegal things to do

According to the writ, Nyinaku supervised and unlawfully instructed payments of hundreds of tens of millions of Ghana Cedis to his cronies and subsidiary providers with out because of diligence.

It explained Nyinaku allegedly hid at the rear of “corporate veil to siphon BEIGE’s money for his private benefit and other uses”.

Other particulars of the breach consist of “failure to exercising thanks diligence in authorising and/or approving loans and other improvements to and for the benefit of 2nd to 13th Defendants, which are companies he beneficially owns or usually controls”.

“Failure to exercising utmost good faith to 2nd Plaintiff by not reporting to Lender of Ghana and/or getting approval for the financial loans and other progress created to his relevant pursuits, particularly 2nd to 13th Defendants”.

Why Beige Lender missing license

Beige Financial institution was reported to have obtained a banking licence falsely.

An inventory asset and property report submitted by the Receiver to the Financial institution of Ghana uncovered that Beige Bank experienced total belongings of ¢494 million.

Out of the determine, ¢282 million, symbolizing 57% were being loans and securities.

According to the report, the financial institution gave an amount of ¢274 million, constituting 31% of the loans to connected parties.

The Receiver stated Beige financial institution did not adhere to credit rating administration policies and experienced inadequacies in recovery efforts.

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