Seth Adu-Afram, a former manager of the Beige Bank Kwabenya Branch, has stated that the National Blood Service (NBS) GH¢3 million investment with the Beige Capital Asset Management (BCAM) was consensual and not stolen from its account.

According to him, the investment was upon the acceptance of the higher interest rates that BCAM would be offering NBS than other financial institutions.

Mr. Adu-Afram, who after the receivership of the Beige Bank is engaged in general trading, food & catering among others, the accusation that funds were moved from NBS account without its consent is false.

He told the Financial and Economic Division of the Accra High Court presided over by Justice Afia Serwah Asare-Botwe on Monday, June 3, 2024, that if NBS was moved illegitimately, it would have raised a red flag.

“I recall that while prospecting for business with NBS they informed us that the had investments with Unibank and could do same with the bank. They made higher interest rates their main bargaining point for deciding what invest with the bank.

I recall explaining to them that the bank could not match what Unibank was offering them. The reason as I explained is that the bank, which had now become a universal bank could not offer such high rates of interest.

However, BCAM, which was a sister institution of the bank and in the position to offer rates significantly higher than what Unibank was offering.

It was based upon this assurance that NBS opened an account with the bank and instructed that the funds be invested with BCAM for them.”

The witness attached his witness statement the certification issued by BCAM in favour of NBS and presented it to the court.

He said that been how the bank dealt with all its customers who had issues with the low interest rates being offered on their fixed term deposits.

Mr. Adu-Afram wondered if what prosecution is claiming that over 10,000 customers of the Beige Bank funds were transferred without their approval, how come none of them was put before the court to testify to that effect.

He reiterated that transaction on an account can only be effect on the instructions of the customer without which the bank cannot debits its customer’s account.

It was his claim that the charge by the prosecution that customers current accounts with the Beige were emptied to BCAM without authorization cannot be correct.

The accusation was described as unthinkable, and it cannot happen under any banking rule, as the customers are not gullible to sit down and allow this to happen openly, they will definitely raise alarm.

In short, he said it is not possible to establish fixed term deposits with the knowledge of the customer.

Mr. Adu-Afram added the operation of fixed deposit and current accounts are different, explaining immediately fund is moved from a current account, the customer will be notified.

Although Julius Ayivor, prosecution’s first witness (PW1), testify before the court that customers funds were moved to BCAM at the instance of Michael Nyinaku, Founder and Chief Executive Officer (CEO) Beige Bank, this witness said it is not true.

The court heard that the only plausible means by which Mr. Nyinaku could have transferred funds from customers current accounts to BCAM was by compromising or hacking the bank’s system.

However, throughout the period he had worked the TBG not once it was reported that the bank’s system has been hacked or Mr. Nyinaku forging the mandates of the 10,000+ affected customers.

Why customers were introduced to BCAM

Mr. Adu-Afram explained that the transition From Beige Capital to a universal bank status, affected their customer- base, due to the drop on customers’ investment interest rates.

To retain their customer- base, BCAM was put in the offering, as it has the capacity to meet customers expectations and demands.Lots of the customer opted to invest their funds with BCAM and others who refused withdrew their money.

To the knowledge of this witness, customers of Beige Bank Kwabenya Branch received payments upon maturity of their investments in early 2018.Customers whose were not paid prior to the receivership or as of August 1, 2018, investments had not matured.Background Mr Nyinaku is accused of siphoning customers’ deposits with the Beige Bank to BCAM without the knowingly of the affected customers.

He is answering 43 charges including stealing, money laundering and defrauding by fraudulent breach of trust. The accused intended to call 61 witnesses and has so far called six.