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Thaddeus Sory, counsel for Michael Nyinaku, former Chief Executive Officer (CEO) of the defunct Beige Bank, has attributed the collapse of the Bank to the facelift it was given.
He said the Bank, which was initially a savings and Loans company, was upgraded to the status of a universal bank at a huge cost.
He said during the upgrade, the purchase of furniture, and additional structure, among others caused the charges levelled against Nyinaku, his client.
He said this during a cross-examination of Abednego Archer, a prosecution’s witness and the investigator in the case.
He put it to the witness that “during the period, the Bank had undergone a lot of improvements, including the buying of furniture, acquiring additional structures and others, to upgrade it to the universal bank status”.
“All the expenses, which formed the subject matter of the charges the accused is facing relate to the improvement of the bank had to undertake to attain universal status,” Sory added.
Archer, however, said he was not privy to the operations of the Bank, then.
Nyinaku is facing charges of fraud and money laundering, which he has denied.
He has been granted bail pending trial.
