Close this search box.

Beige-Bank trial: money was invested in bank’s rebranding, assets

Mr Dawda M. Hafisdeen, former Chief Financial Officer (CFO) of the defunct Beige Bank, says the Universal bank invested in rebranding but its receiver failed to capture it in his report.

The rebranding was necessitated when the Bank of Ghana (BoG) upgraded it from a Savings and Loans to a bank status, the first defence counsel’s witness said in his evidence-in-chief.

He said the facelift was done to all the over 90 branches across the country, adding that it was necessary to make an adjusting entry by moving the cost incurred from pre-payments of project works code to the leasehold imprisonment code which the receiver failed to.

The rebranding included advertising, marketing, brand development activities, buying of furniture, installation of new road signage, production and distribution of brand merchandise, all in the name of achieving strong, visible, and attractive brand presence.

Giving the breakdown, Mr Hafisdeen said brand development project which started in 2014 cost GHC61,330,185.00, acquired fur
niture, air conditioners, power generators, to the tune of GHC7,563,480.00.

Apart from that, the receiver did not put into its report some assets of the bank such as 168 properties leased out with others under construction, the witness told the High Court presided over by Mrs Afia Serwaa Asare-Botwe, a Court of Appeal Judge with additional responsibility as a High Court judge.

He cited a building situated at Atomic Junction currently occupied by Consolidated Bank Ghana (CBG) valued GHC11,872,240.00.

By August 1, 2018, the bank had nine buildings valued GHC59,904,670.00, however the receiver recorded GHC36,891,000.00 which he said should be reclassified.

Michael Nyinaku, former Chief Executive Officer of the bank is standing trial for charges of theft and money laundering.

He has since denied and is on a GHC200 million bail and being represented by Mr Thaddeus Sory.

Source: Ghana News Agency