The Special Offences Court in Lagos is hearing a case involving alleged fraud connected to Arik Air, with the EFCC prosecuting former AMCON MD Ahmed Kuru and others for fraud involving substantial sums. Witnesses have testified about misleading bank transactions, while AMCON seeks to recover significant debts owed by Arik Air and related companies.
The Special Offences Court in Lagos, Nigeria, is currently hearing testimony relating to alleged fraudulent activities involving Union Bank Nigeria Plc and the Assets Management Corporation of Nigeria (AMCON) concerning Arik Air. The Economic and Financial Crimes Commission (EFCC) is prosecuting former AMCON managing director Ahmed Kuru, along with Union Bank and three additional defendants, implicating them in fraud totaling approximately NGN76 billion (USD49.5 million) and USD31.5 million tied to Arik Air.
The charges against the defendants, including former receiver manager Kamilu Omokide and current CEO Roy Ilegbodu, consist of theft, abuse of office, and dishonestly appropriating property. A statement from EFCC indicated that Union Bank is accused of making misleading statements to AMCON in 2011, resulting in a fraudulent transfer of NGN71 billion (USD46 million) through the unwarranted sale of Arik Air’s loans and guarantees.
Another charge involves Kuru, Omokide, and Ilegbodu for allegedly misappropriating NGN4.9 billion (USD3 million) of Arik Air’s property for NG Eagle in 2022. The accused parties have pleaded not guilty and are currently released on bail amounting to NGN20 million (USD13,000).
On March 17, witness Peter Omokaro, former assistant manager at Union Bank, reported that Arik Air sought the bank’s help in acquiring an aircraft. Union Bank provided loan guarantees from HSBC Bank and the United States’ EXIM Bank but did not disburse any cash. Following Union Bank’s 2009 takeover by the Central Bank of Nigeria, management decided to sell these guarantees to AMCON.
Omokaro noted that a meeting involving AMCON and the foreign banks took place in London in 2011, but Arik Air, as the main obligor, was not included. He stated that no cash loan was issued to Arik Air, and there were no defaults on their payments, asserting that Union Bank had converted the guarantees into cash to extract funds from AMCON, thus leading to the fraud allegations.
During his cross-examination, Omokaro admitted to previously suing Union Bank after his sudden dismissal. The court accepted five documents relevant to the transaction into evidence and scheduled the next trial date for March 19.
In another development, AMCON has reiterated its commitment to recovering NGN455 billion (USD297 million) from Arik Air, which has been under its receivership since February 2017, as well as from associated companies Ojemai Investment Limited and Rockson Engineering Nigeria. AMCON spokesman Jude Nwauzor accused Johnson Arumemi-Ikhide, founder of the airline, of failing to cooperate in settling the debts and spreading inaccurate information regarding the state of the debts. As of the end of December 2024, AMCON reports that Arik Air owes NGN227.6 billion (USD148 million), Rockson Engineering NGN163.5 billion (USD106 million), and Ojemai Investment NGN14 billion (USD9 million).
In summary, the ongoing trial concerning Arik Air highlights significant allegations of fraudulent activities that include the conversion of funds and misleading transactions by Union Bank and AMCON executives. The prosecution asserts notable financial discrepancies, while the defendants claim their innocence and deny any wrongdoing. AMCON is actively pursuing the recovery of substantial debts owed by Arik Air and its affiliates, underscoring the financial challenges facing the airline.
Original Source: www.ch-aviation.com
