Attorney-General Commences Criminal Proceedings Against Former General Manager of N.N. Est Metals Company Limited

Key Takeaways

The Attorney-General has commenced criminal proceedings against Mohammed Nassereddine for allegedly dishonestly appropriating $280,000.
The accused is facing two counts of stealing under Section 124(1) of the Criminal Offences Act, 1960 (Act 29).
The prosecution alleges that Nassereddine made unauthorised payments to himself without the approval of the Group Chief Executive Officer.

The Attorney-General has taken the unprecedented step of commencing criminal proceedings against Mohammed Nassereddine, the former General Manager of N.N. Est Metals Company Limited and M.N.D. Metals Company Limited, for allegedly dishonestly appropriating $280,000. The accused is facing two counts of stealing under Section 124(1) of the Criminal Offences Act, 1960 (Act 29), following allegations that he made unauthorised payments to himself without the approval of the Group Chief Executive Officer.

The prosecution alleges that Nassereddine orchestrated a series of unauthorised payments involving funds belonging to N.N. Est Metals Company Limited and M.N.D. Metals Company Limited in March 2023, contrary to the company’s internal approval procedures. Investigators say Mr Nassereddine admitted receiving the funds, but the Attorney-General maintained that his assertion that the money represented commission due him was inconsistent with the terms governing his remuneration.

Background & Context

Mohammed Nassereddine was employed by Nidal Nassar Eddine, the Group Chief Executive Officer of the N.N. Est Group of Companies, in December 2019 as General Manager responsible for overseeing the group’s operations in Lebanon, Dubai, Turkey, Burkina Faso and Ghana. As head of the group’s Ghanaian operations, he exercised managerial authority over N.N. Est Metals Company Limited and M.N.D. Metals Company Limited, where his responsibilities included the management of company stock and the reconciliation of monthly stock settlements.

The relations between the accused and the Group Chief Executive Officer deteriorated in October 2022 after Mr Nassereddine was directed to surrender company stock under his control but allegedly failed to comply with that instruction.

Key Findings

The prosecution alleges that on 8 March 2023, Mr Nassereddine instructed the company’s accountant to pay him US$50,000 belonging to N.N. Est Metals Company Limited without obtaining the approval of the Group Chief Executive Officer. Later the same day, he allegedly directed the accountant to pay him an additional US$30,000 belonging to M.N.D. Metals Company Limited, also without the requisite approval. The alleged unauthorised payments continued on 13 March 2023, when Mr. Nassereddine allegedly instructed the accountant to pay him a further US$200,000 belonging to N.N. Est Metals Company Limited, again without the approval of the Group Chief Executive Officer.

The prosecution maintained that the three transactions resulted in the alleged unauthorised appropriation of US$280,000, comprising US$250,000 belonging to N.N. Est Metals Company Limited and US$30,000 belonging to M.N.D. Metals Company Limited.

Broader Implications

The alleged irregularities were subsequently uncovered during an audit conducted by the Group Chief Executive Officer, who lodged a formal complaint with the police, culminating in the accused’s arrest and the commencement of criminal investigations. The case highlights the importance of internal approval procedures and the need for companies to have robust systems in place to prevent unauthorised transactions.

The Attorney-General’s decision to commence criminal proceedings against Mr Nassereddine sends a strong message that corporate malfeasance will not be tolerated in Ghana. It is a significant development in the country’s efforts to combat corruption and ensure accountability in the business sector.

Looking Ahead

The case against Mr Nassereddine is set to be heard before the Criminal Division of the High Court in Accra. The prosecution will need to present evidence to prove that the accused committed the alleged offences, and the court will have to determine whether the accused is guilty of stealing under Section 124(1) of Act 29.

The outcome of the case will have significant implications for the business sector in Ghana and will provide clarity on the country’s laws and regulations regarding corporate governance and internal approval procedures.