Former General Manager (GM) of First Africa Savings and Loans Limited (FASL) Kwabena Osei Bonsu (Rtd.) has been put to scrutiny over claims that he did not know Beige Bank had acquired 90% shares of FASL.

Mr Osei-Bonsu is the fourth Prosecution Witness in the case in which Michael Nyineku, the founder of the defunct Beige Bank is standing trial for allegedly siphoning customers' funds.

Michael Nyineku, the founder and Chief Executive Officer of the defunct bank, has been accused of allegedly siphoning customers' funds and has been charged for stealing GH¢2.1 billion of depositors’ money from the bank.

He has pleaded not guilty to 43 charges including stealing, fraudulent breach of trust and money laundering and has been granted bail.

In the Evidence-in-Chief contained in his witness statement adopted, he had told the High Court in Accra that, though he was not aware of that there was a share purchase agreement signed between the Beige group Ltd and First Africa group.

“I am putting it to you also that the reason why as confirmed by you in paragraphs 7 to 10 of your witness statement Vanessa Atsu and Yvonne Philips were made signatories at the time the First African Savings and Loans Limited was opened was because the Beige Group had now become a 90% shareholder of First African Savings and Loans Limited,” Lawyer Thaddeus Sory had put to the witness.

But in his response, he said “That is not correct so far as I know.”

It was the contention of the accused that, the shares were sold at a value of $2.5m out of which a consideration of GH¢7m being the USD equivalent of which was then approximately Usd1.6m was paid directly to First Africa Group, the then sole shareholders of First Africa Savings and Loans Ltd.

After having paid the consideration to the outgoing shareholders, counsel said Beige made a further capital injection of GH¢9m into FASL to boost and revive the company’s operations

Counsel intimated that, all this while officials of FASL had represented to Beige that they had secured all relevant approvals from the Bank of Ghana (BoG) when in fact that was not the situation.

Mr Sory, while scrutinizing the Witness also pointed out that, by the terms of the share purchase agreement, the transaction was to close within 90-days by which time Beige was to assume full control of FASL and all mandates to FASL operations were to be fully transferred to Beige.

Counsel said, sometime in March 2018, FASL had not fully delivered on their obligations in the sale agreement but were demanding for more capital injection from Beige in the sum of GH¢6.5m

Mr. Sory said, Beige declined to inject the additional capital required and demanded that FASL fulfill all its obligations that were pending but these obligations were never discharged by FASL.

But, the witness said, he believes the request for additional funds was made to Beige because FASL needed the funds to operate while they awaited the approval from the central bank which never happened because they were informed by the BoG that Beige Bank was under investigation.

The Financial and Economic Court 2 presided over by Justice Afia Serwah Asare-Botwe, a Justice of the Court of Appeal sitting as an additional High Court judge has adjourned the case to July 8, for prosecution to call its next witness.

Below are excerpts of the cross-examination of PW4 by Lawyer Sory

NB: Q (for Question) and A( for Answer)

Q: In paragraph 2 of your witness statement, you just say you stay at Spintex, do you stay at an address that has a number?

A: Yes my lady.

Q: You also say in paragraph 4 that the Beige Group had expressed interest in equity participation in First African Savings and Loans Limited, do you still stand by that statement

A: Yes my lady.

Q: And indeed, you confirm that payments were made towards that equity participation, is that correct?

A: Yes my lady, an amount of 9 million Ghana Cedis.

Q: Take a look at this document, have you seen it?
A: I have seen it and this is my first time of seeing this document.

Q: The first page of that document is a letter written on a letter head of the Beige Group, is that correct?

A: Yes my lady.

Q: It is written to the Managing Director to the First Africa Group, is that correct?

A: Yes my lady.

Mr. Sory: My lady I want to tender the document through the witness.

By Court: Any objection?

Mrs. Ohene Appiah: My lady we have an objection to the tendering of this document through this witness. The witness upon being asked if he had seen this document before. His answer was that this is the first time he was seeing such a document. He is not the author of the document. The document is not coming from his custody and I doubt if he has knowledge of the content of this document to enable him answer any question that counsel will pose to him. The witness has clearly stated that he does not know this document and for this reason, I pray that the document be rejected.

Mr. Sory: My lady, our contention is that the letter is admissible as a business record within the meaning of Section 125 of the Evidence Act 1975 NRCD, 323. In terms of Section 125 of the Evidence Act, business records are admissible as hearsay evidence regardless of whether they have personal knowledge of such records or not.

Section 125 says as follows and with your kind permission, I will read to the hearing of the court. (Counsel reads to the hearing of the court)….

By Court: Mr. Osei-Bonsu, can you read the minutes of the letter to the court?

The witness reads the minutes to the hearing of the court.

By Court: Do you recognize the signature on the letter?

Witness: Yes my lady.

BY COURT

The witness has indicated in this evidence-in-chief that he was the General Manager of First African Savings and Loans Limited. From the witness list and witness statements filed by the prosecution, the Managing Director of the FASL, Mrs. Gifty Afenyi-Dadzie will not be testifying in this matter. The witness has seen and acknowledged the minutes of receipt and acknowledged the minutes of receipt and the signature of the said Hon Mrs. Gifty Afenyi-Dadzie on the document.

In those circumstances, having to answer to allegations of a fictitious FASL account with the Beige Bank or Beige Group, this document or any other official agreement or correspondence between the entities of FASL and Beige Bank (or Beige Group) would be relevant and would be admissible. The document dated 8th September 2017 is admitted as Exhibit 20.

Q: Exhibit 20 refers to an attachment of a share purchase agreement, is that correct?

A: There is a Share Purchase Agreement between First African Group and Beige Group.

Q: Take a look at this document, the document I have just shown to you is a letter written by First African Savings and Loans Limited (FASL) to the CEO of the Beige Group, is that so?

A: Yes my lady.

Q: And the Beige Group are the purchasers of the shares referred to in Exhibit 20, is that correct?

A: Yes my lady. There was an intention to purchase shares.

Mr. Sory: My lady I want to tender the document through the witness.

By Court: Any objection.

Mrs. Ohene-Appiah: My lady there will be no objection

BY COURT

The letter dated 30th March 2018 from the Managing Director, Hon. Gifty Afenyi-Dadzie to the CEO of Beige Group is admitted without objection as Exhibit 21.

Q: If you take a look at paragraph 4 of your witness statement, you confirm that a total amount of 9 million Ghana was paid but you referred to is a deposit, do you still stand by it?

A: We described it as deposit for shares because we had to present all the relevant documentation for the purchase of the shares to the Bank of Ghana for approval and since the transaction for purchase of shares had not been approved by Bank of Ghana, we were not allowed to treat it as share capital and indeed Bank of Ghana suggested or recommended that it should be treated as such until Bank of Ghana approves, then we could treat it as capital but the approval never came until the consolidation of the banks which included Beige Bank.

Q: So your testimony in this court is that there were actually full payments but you had to describe it as a deposit, is that not so?

A: The GH¢9 million was received but I cannot say it was full payment because I did not know the total amount and the content of this document (i.e., Exhibit 20), today is the first time I am seeing it and I have not even read it.

Q: Since you did not know the total amount involved, you could have checked before testifying positively that the 9 million represented a full payment rather than a deposit.

A: I do not know where I could have checked because I did not know the content of this letter. I was an officer of First African Savings and Loans Limited and therefore I could not have had access to this document.

Q: So, you did not make any enquiry at all?

A: No my lady.

Q: Take a look at Exhibit 21, kindly read the first sentence to the hearing of the court.

A: The witness reads to the hearing of the court.

Q: That first sentence says categorically that the GH¢9 million was total payment of shares acquired by the Beige Group in First African Savings and Loans Limited.

A: If my memory serves me right, this GH¢9 million was paid in installments of GH¢2 million and GH¢7 million which I do not know which one came first but I am sure this expression “total payment” here is talking about adding the two payments to get the GH¢9 million so therefore it does not represent per se the total amount of the shares. That is my understanding.

Q: From paragraph 1 of Exhibit 21 which you have read, there is no reference to any two prior installment payments to give us the total of GH¢9 million, I am putting that to you.

A: I know that there were two payments of GH¢2 million and GH¢7 million.

Q: Is there a reference to those two payments in paragraph 1 of Exhibit 21?

A: This letter was not authored by me and I am saying that I know there were two payments. That is why I am trying to explain that these two payments will be for the total payment of the GH¢9 million.

Q: I am putting it to you that your explanation is not in Exhibit 21.

A: My explanation is what I know about the payments for the deposits for shares. As I have stated, I did not author this letter but my explanation is coming from my knowledge of this transaction and not from this letter.

Q: And I am saying to you that, that your knowledge cannot be found on Exhibit 21 so if you can find it, point it to the court.

A: My lady there are records concerning this transaction. These records are with the Receiver so if the court wants the details I am talking about now, the documents are with the Receiver for the two separate payments which I can remember.

Q: I am putting it to you that you can never have a total of a figure without a prior breakdown of the figures that give you that total.

A: The author of this document decided to put it that way but I am saying that there were two separate payments.

Q: The Share Purchase Agreement that we tendered in as Exhibit 20, I am putting it to you that it had three critical dates, i.e., the Commencement Date, the Transitional period and the Cut-off period.

A: I would not know because I have not read the document and I have not seen it before so it is strange to tell me that it has three components. I do not know anything about the content of this document and it would be unfair for me to answer questions of this document. I am not the author of this document; I have not seen it before so I cannot answer questions on them.

Q: I am putting it to you that during the transitional period, officials of the Beige Group were supposed to understudy the operations and business of First African Savings and Loans Limited.

A: I am not in the position to confirm that because I am sure maybe it is in the agreement which I am not privy to.

Q: I am putting it to you further that, the appointment of Vanessa Atsu as Relationship Officer to First African Savings and Loans Limited (FASL) by the Beige Group arose from the Share Purchaser’s Agreement (i.e., Exhibit 20) and not a simple request.

A: Ms. Vanessa Atsu was brought to our office. I was not given any terms of reference for her so I cannot say that it emanated from the share agreement.

Q: I am putting it to you also that the reason why as confirmed by you in paragraphs 7 to 10 of your witness statement Vanessa Atsu and Yvonne Philips were made signatories at the time the First African Savings and Loans Limited was opened was because the Beige Group had now become a 90% shareholder of First African Savings and Loans Limited.

A: That is not correct so far as I know.

Q: I am putting it to you also that Vanessa Atsu and Yvonne Philips were signatories to that account that you testified about in paragraph 7 of your witness statement even before you became a signatory.

A: Initially, the signatories to the account from FASL were Mr. K. T. Dadzie and Mrs. Gifty Afenyi-Dadzie and then Vanessa Atsu and Yvonne Philips on the side of Beige Group. After some time, I was made to replace Mr. K. T. Dadzie on the side of FASL so it became Mrs. Gifty Afenyi-Dadzie and myself.

Q: So, in fact, the testimony you have just given to this court, you confirmed that to the police when you gave your statement to the police?

A: I cannot remember.

Q: Take a look at this document, the document has your name on it, is that so?

A: Yes my lady but I cannot see where I said Mr. Dadzie was a signatory because what I gave to the police is what I wrote in my statement.

Q: And the document has on the top of it “Ghana Police”, is that correct?

A: Yes my lady.

Mr. Sory: My lady I want to tender the document through the witness

By Court: Any objection?

Mrs. Ohene-Appiah: My lady we have no objection.

BY COURT

The statement volunteered to the police is admitted without objection as Exhibit 22.

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