Here’s why Beige bank founder, Mike Nyinaku was granted bail after being in remand for three days

The Accra High Court’s commercial division has granted bail to the CEO of the defunct Beige Bank Mike Nyinaku on Friday, January 17, 2020.

Mike Nyinaku

This was granted after Police prosecutors told the court the accused was on admission at the Police Hospital after he took ill on Thursday, January 16, 2020.

Justice Essandoh admitted the banker to a bail bond of GH¢352 million with two sureties who must earn not less than GH¢2,000 as salary.

Why Mike Nyinaku was remanded

Mr Nyinaku is being prosecuted by the state over his role in the collapse of the bank.

He was denied bail after he was arraigned before the court on Tuesday, January 14, 2019, on charges of Stealing and Money Laundering.

His bank, the Beige Bank was said to have obtained a banking licence falsely.

An inventory asset and property report filed by the Receiver to the Bank of Ghana revealed that Beige Bank had total assets of GH₵494 million.

Out of the figure, GH₵282 million, representing 57% were loans and securities.

According to the report, the bank gave an amount of GH₵274 million, constituting 31% of the loans to related parties.

The Receiver said Beige bank did not adhere to credit administration policies and had inadequacies in recovery efforts.

Also, court documents showed that Mr Nyinaku created a secret bank account breaching banking regulation.

The court noted that the secret account was named First African Savings and Loans (FASL) and was lodged at the Consolidated Bank of Ghana (CBG) which took over The Beige Bank (TBB) in August 2018.

Mr Nyinaku started splashing the money on other companies he controlled or founded on the blindside of the regulator.

Beige Academy and Beige Capital got GHC250,000 and GHC2.2million respectively. Mr Nyinaku’s philanthropic organization Beige Care had GH¢392, 000. He further transferred GHC21million to affiliate groups while customers of his defunct bank grew anxious about the security of their deposits and investments.

Currently, investigators are still looking to find out the sources of the funds deposited in what has been called a ‘false account’.

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