Beige Group spent over GH¢1.8 million on publicity - Witness

Michael Djanie, the 15th witness in the ongoing trial of Michael Nyinaku, former Chief Executive Officer (CEO) of the defunct Beige Bank, testified that The Beige Group (TBG) spent GH¢1,899,273.83 on publicity.

This expenditure was part of the activities marking the transition from Beige Capital Savings and Loans (BCSL) to The Beige Bank (TBB).

Djanie, Head of the Brands and Communications Department at TBB, disclosed this during his evidence-in-chief at the High Court, presided over by Mrs.

Afia Serwaa Asare-Botwe, a Court of Appeal Judge with additional responsibilities at the High Court.

The witness detailed thatGH¢5,904.92 was paid to the Daily Graphic on August 8, 2017, to inform the public about BCSL's new status as a universal bank.

He clarified that the advertisement cost GH¢6,307.53, but payment was made minus withholding tax, noting that the advertisement appeared in the newspaper on July 25, 2017.

A partial payment of GH¢11,325.60 was made to the Daily Guide for a front-page "strip advertisement."

This payment, made on August 16, 2017, covered a month-long advertisement, with the total publication cost estimated at GHCGH¢24,195.60.

Furthermore, out of the GH¢38,275.50 budgeted for office branding, GH¢11,000.00 was allocated as an honorarium for media engagement, GH¢1,150.00 as a staff reward, and the remainder for painting some agencies under the group, among other expenses, Djanie added.

He continued, stating that a partial payment ofGH¢13,200.00 was made to Websoft Solutions on December 11, 2017, for the design and development of a new website to replace the BCSL site with TBB's. The total cost for this was GH¢17,625.00.

For live Facebook streaming of TBB's launch to a global audience, a partial payment of GH¢2,775.00 was made to Echohouse Ghana Limited on December 19, 2017, although the entire activity was budgeted at GH¢3,000.00, the court heard.

A total of GH¢285,257.06 was allocated for the fabrication and installation of signage and branding for select branches across the country.

For example, from the GH¢443,651.75 set aside for the production and installation of community facial signage in parts of the country, GH¢2,400.00 was paid to the Shama District Assembly for a permit to erect them, the court was informed.

The court also learned that "Think Mohogany Limited," an event planning organization, was paid GH¢9,409.32, rather than the full GH¢34,849.35, for rental logistics and decoration work done to enhance the event venue's appeal.

Djanie further informed the court that George Nii Lantey made two payments of GH¢45,056.50 each on December 15, 2017, and January 9, 2018, for the production of branded souvenirs.

These were distributed to all customers, guests, and participants at the event, and to express gratitude to all customers and patrons who visited any of the bank's branches nationwide.

In all transactions with various companies, vendors of TBB were required to open an account with the bank to support TBG's growth.

Additionally, a witness from the brand's department told the court that GH¢964,255.32 of the over GH¢1.8 million was spent on billboard advertising.

He detailed that five payments made to DDP Outdoor Limited for billboard rentals on different occasions were utilized for advertisements at various locations nationwide.

Specifically, between February 28, 2017, and April 25, 2018, payments of GH¢74,893.62, GH¢93,617.02, GH¢280,851.06, GH¢514,893.62, and GH¢35,106.36 were made to DDP Outdoor Limited.

He noted that the GH¢35,106.36 paid on April 25, 2018, was a refund of amounts withheld from previous payments made in respect of billboard rentals. These amounts, when withheld, were paid to the Ghana Revenue Authority (GRA) as withholding taxes.

"However, the GRA allows such funds to be paid to the institutions to whom the funds are due, provided the institutions can present evidence of being exempted from withholding tax," he explained.

He concluded that the refund was part of the advertising expenditure incurred on behalf of and for the benefit of the bank.

Nyinaku faces charges of stealing, money laundering, and fraudulent breach of trust. He has denied all charges and is currently on bail pending trial.