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Introduction
Ghana’s second apex court has acquitted and discharged Michael Nyinaku, a collapsed bank owner, of any wrongdoing in the country’s controversial bank bust.
The decision ended nearly three years of trial, which the state had started against the former Chief Executive Officer of The Beige Bank Limited.
Ghana’s banking sector clean-up
The Bank of Ghana withdrew the licenses of 10 banks due to their insolvency, poor corporate governance, and severe liquidity impairments.
The banks include Michael’s The Beige Bank, UT Bank, Unibank, The Sovereign Bank, Premium Bank, Capital Bank, The Royal Bank, Heritage Bank, Construction Bank and GN Bank.
Some directors of the collapsed banks are standing trial for multiple offences, including stealing and money laundering.
However, Ghana’s courts have convicted and sentenced some bank founders in cases such as Republic v. Duku and Others (the Venture Capital Case) and Republic v. William Ato Essien.
In the two cases, the convicted persons were allowed to restore the State to the tune of the amount lost as per Section 35(1) of Ghana’s Courts Act, 1993 (Act 459).
Section 35(1) of Act 459 provides that,
“Where a person is charged with an offence before the High Court or a Regional Tribunal the commission of which has caused economic loss, harm or damage to the State or any State agency, the accused may inform the prosecutor whether he admits the offence and is willing to offer compensation or make restitution and reparation for the loss, harm or damage caused.”
However, unlike the convicted persons in the Republic v. Duku case, William Ato Forson was sentenced to 15 years after he failed to pay in full the GH¢90 million agreed with the State since December 2022.
Michael standing trial
Michael was charged with 44 counts of stealing contrary to Section 124(1) of the Criminal Offences Act, 1960 (Act 29), fraudulent breach of trust contrary to Section 128 of the Criminal Offences Act, 1960 (Act 29), and money laundering contrary to Section 1(2)(c) of the Anti-Money Laundering Act, 2020 (Act 1044).
The charge sheet, signed by the country’s Director of Public Prosecutions, Yvonne Atakora Obuasi, accused the ex-bank owner of appropriating various sums belonging to The Beige Bank Limited.
The government claimed that between 2017 and 2018, he caused the “transfer of 10,071 fixed deposit accounts held with The Beige Bank in which customers placed a total of GH448,636,210.21 to Beige Capital Asset Management (BCAM), without the knowledge and consent of these customers.”
Michael has denied any wrongdoing in the collapse of The Beige Bank Limited.
The trial started in November 2022 and ended this year when Ghana’s Court of Appeal ruled that the prosecution had not made a good case for Michael to open his defence.
Other cases against Michael
Other cases against Michael, both criminal and civil, have been brought in various capacities, including the role he played at the bank he founded, Beige Bank.
Serene Ambience GH. Ltd and five others filed a civil case against him for a declaration of title to some acres of land said to be situated at Adamrobe in the Greater Accra Region, among other places.
Also, the receiver appointed to handle issues of The Beige Bank sued Michael in 2019 over transactions he claimed breached his duties as bank director.
However, these cases differ from the criminal case the State brought against Michael and others.
Michael’s criminal case and the decision of the High Court
After the prosecution’s case, the High Court ruled that Michael had a case to answer, dismissing a submission of no case to answer.
Aggrieved by the decision, Michael appealed against it at the Court of Appeal, which ruled that the banker should not open his defence since the prosecution had not made a good case against him.
Court of Appeal acquits and discharges Michael
The Court of Appeal acquitted and discharged Michael of all criminal charges in a ruling that has divided opinion in the country.
The decision was taken by a three-member panel chaired by Justice Emmanuel Ankamah, with Justices of Appeal Dr Ernest Owusu Dapaah and Kofi Akrowiah as panel members.
Attorney-General’s Reaction to Court of Appeal’s Decision
Addressing the issue at a press conference in Accra, Ghana’s Attorney-General, Dr Dominic Ayine, said the lawyers of The Beige Bank had offered to compensate the State with the sum of GHȼ10 million, but this was declined.
“I can now disclose that Beige Capital offered me or my office GH¢10 million in settlement and I refused…You can ask the lawyers for Beige Capital; ask lawyer Thaddeus Sory,” the A-G said.
However, Ayine said that with the Court of Appeal acquitting and discharging Michael, the State would not get anything from the entire trial.
“Today, I can’t get 50 pesewas from Beige Capital. So, the dynamics are complex,” Ayine said.
Conclusion
Although the Court of Appeal’s decision is appealable, the A-G has no intention of appealing it. The Court’s decision brings finality to the entire trial if not appealed against.
