• The Bank of Ghana revoked the licence of Beige bank in 2018.
  • The receiver of the bank subsequently sued the founder of the defunct bank.
  • In court today, CEO of the bank Mike Nyinaku was refused bail.

An Accra circuit court presided over by Justice Essandor, has remanded the Chief Executive Officer (CEO) of defunct Beige Bank, Mike Nyinaku, in police custody.

He is to be held there for one week.

A bail application by his lawyers was dismissed even after his legal representation assured the court that he will cooperate with the ongoing trial.

The prosecutor did not oppose the application but the judge said his decision was because the prosecution said investigations were still ongoing.

The business mogul who became an inspiration to young people was sued in June 2019 by the receiver for Beige Bank, Nii Amanor Dodoo. He was sued together with 12 of his subsidiary companies to a tune of over GHC1.3 billion

Mr. Nyinaku is facing a trial over his alleged role in the collapse of his bank.

In August 2018 the BoG revoked the license of Beige Bank. The Central bank at the time said that Beige Bank obtained a banking licence falsely.

An inventory asset and property report filed by the Receiver to the Bank of Ghana showed that Beige Bank had total assets of GHC494 million. Out of the figure, GHC282 million, representing 57% were loans and securities.

The Receiver accused the bank of not adhering to credit administration policies and had inadequacies in recovery efforts.

Michael Nyinaku is expected to cough up over GHc1.3 billion.