Information reaching DAILY GUIDE indicates that the Chief Executive Officer (CEO) of the defunct Beige Bank, one of the five financial institutions that were merged into an entity known as the Consolidated Bank Ghana Limited, has been arrested.
Mike Nyinaku was arrested in Takoradi where he was engaged in the disposal of properties belonging to the defunct Beige Bank, a breach of the law under the circumstances, DAILY GUIDE has learnt from a reliable source.
Upon hearing of the unlawful act after the bank was taken over by a Receiver, the Special Investigating Team (SIT) probing the collapsed banks consisting of top-notch professionals from various fields, including the police and other security agencies, ordered his arrest.
He is now in Accra assisting the team in investigations into the allegation of disposing of properties belonging to Beige Bank and associated entities.
Mr. Nyinaku holds 99 per cent of the properties of the defunct bank and its affiliated entities, including insurance, finance house, properties and pension funds.
He is said to have used the defunct bank to fund the activities of all these affiliated appendages.
Following the discovery of the anomaly, the Bank of Ghana (BoG) intervened as it did to other challenged banks.
The operations of five failed banks were consolidated under the Consolidated Bank while others were taken over by GCB bank.
DAILY GUIDE has learnt the man was specifically disposing of vehicles belonging to the bank, an act which contravenes standard procedure when a Receiver takes over the assets and liabilities of a failed entity under the prevailing circumstances.
Upon the intervention of the BoG, it would be recalled that customers of the defunct bank were prevented from making withdrawals.
The Consolidated Bank took over assets and liabilities of the collapsed banks, including Beige Bank.
Customers were told that some accounting anomalies by BEIGE Bank and its other related company BEIGE Capital Assets Management had been discovered.
The maiden CEO of the Consolidated Bank, Daniel Addo, at the time, told distressed customers to wait for 10 days for the anomalies to be addressed before they could make withdrawals.
Under the circumstances, therefore, the former CEOs or owners are unable to claim ownership of the assets of the consolidated banks since such possessions are now legally vested in the new owners, Consolidated Bank, which was created by the BoG, the regulator that appointed the Receiver.
When DAILY GUIDE reached out to the SIT for authentication of the arrest of the Beige CEO, it neither denied nor said otherwise.
SIT, in a release authored by its team leader, said that “it has come to the attention of the Special Investigation Team (SIT) that some erstwhile directors, executive committee members, related entities and former staff of the collapsed seven indigenous banks, who are under investigations, are dealing in assets and other properties in the name of their respective entities. The SIT wishes to inform the general public that anybody negotiating over or intending to purchase any of such assets should cease any such process and to seek clearance from the Special Investigation Team.
“Additionally, anyone with information regarding the disposition of any such property should reach the SIT on the following numbers: 0299015257 or 0299015258.”
The SIT was tasked to investigate circumstances that led to the collapse of the banks.
Following the revocation of the licences of the affected banks by the Central Bank, the President, through the Attorney-General and Minister for Justice, Gloria Akuffo, constituted a Special Investigation Team to take over the investigations relating to the financial institutions.
The 11-member team was appointed and inaugurated on 17th September, 2018, by the Attorney-General and Minister for Justice in consultation with the Minister for the Interior, Minister for National Security and the Inspector-General of Police.
The SIT comprises personnel from the Ghana Police Service, Economic and Organized Crime Office (EOCO), Financial Intelligence Centre, Office of the Attorney-General, banking industry and the Chartered Institute of Accountants.
It’s headed by a Deputy Commissioner of Police.
DAILY GUIDE can confirm that the prosecution of those found guilty in the collapse of the banks would soon commence.
The Consolidated Bank Ghana Limited is made up of Sovereign Bank, Royal Bank, The Beige Bank, Construction Bank and Unibank.