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Businessman in court for allegedly defrauding Toyota Ghana

BY: Justice Agbenorsi

The Chief Executive Officer (CEO) of Global Motor Trading Company Limited (GMTCL), Nareswar Singh, has been hauled before an Accra Circuit Court for allegedly issuing two dud cheques to Toyota Ghana Company Limited (TGCL) after purchasing five models of Toyota vehicles at a cost of GH¢1.82 million.

According to the prosecution, the accused person, who had agreed in a sales agreement between the two companies to make payment for the vehicles through Letters of Credit (LCs), rather issued two separate cheques to TGCL in replacement of the LCs after they had matured.

The cheques, details of which were presented before the court, however, bounced, compelling the complainant to seek legal redress.

Singh pleaded not guilty to two counts of issuing of false cheques and one count of defrauding by false pretence, after the charges and facts had been read to him.

The hearing continues at the Accra Circuit Court, presided over by Mr Emmanuel Essandoh, on September 1, this year.

Bail

The court granted the accused person bail in the sum of GH¢2 million, with three sureties, all to be public servants earning not less than GH¢3,000, and one to be justified.

The surety with justification must provide proof of ownership of property worth GH¢1 million.

Bail application

In his application for bail, counsel for the accused person, who gave his name as Lawyer Samir, told the court that his client was the head of a reputable company and was ready to cooperate with the police as far as investigations were concerned in order to salvage his company’s reputation.

Counsel added that the accused person was not a flight risk and urged the court to set favourable and reasonable terms for him to appear before it until the final determination of the matter.

When the presiding judge asked counsel what efforts were being made to settle the matter, Lawyer Samir told the court that since it was a civil litigation, there were efforts being made with an arbitrator to have the matter settled amicably.

Facts

The prosecutor, Assistant Superintendent of Police (ASP) Mr Emmanuel Nyamekye, told the court that the complainant in the case was the Managing Director (MD) of TGCL.

He said on April 18, last year, GMTCL purchased five models of Toyota vehicles from TGCL at a cost of GH¢1.819 million, which was to be paid through LCs.

He said the vehicles were duly supplied, with reference to the sales agreement signed between TGCL and GMTCL.

The prosecutor further told the court that upon maturity of the LCs, GMTCL refused to authorise its bank to pay TGCL, but rather issued the two separate cheques, one to be withdrawn on February 9, this year and the other to be withdrawn on March 30, also this year, both in replacement of the LCs.

Cheques bounced

ASP Nyamekye said both cheques were dishonoured when they were presented at the bank.

He said a report was then made to the police, which led to the arrest of the accused person.

He indicated further that in his caution statement, the accused person admitted the offence and said the banks had declined the LCs because they were presented late and there was a discrepancy.

ASP Nyamekye said the two banks where the cheques were presented were invited to assist with investigations and a report retrieved showed that the banks did not have adequate funds at the time the cheques were issued.

Following further investigations, the accused person was charged with the offences and arraigned.