The Lagos Special Offences Court is hearing a fraud case involving Arik Air and Union Bank, prosecuted by the EFCC. The charges against Ahmed Kuru, among others, include theft and abuse of office related to claims of fraudulent transactions. Testimony reveals that the bank purportedly misled AMCON regarding loans. Meanwhile, AMCON seeks to recover debts totaling NGN455 billion from Arik Air and its affiliates.
The Special Offences Court in Lagos, Nigeria, has begun hearing testimony in a fraud case involving Arik Air. The Economic and Financial Crimes Commission (EFCC) is prosecuting several parties, including the former managing director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and Union Bank Nigeria Plc, regarding alleged fraudulent activities linked to a total of approximately NGN76 billion (USD49.5 million) and USD31.5 million related to Arik Air.
In addition to Kuru, the defendants include Kamilu Omokide, former receiver manager of Arik Air, current CEO Roy Ilegbodu, and a firm named Super Bravo Ltd. They face multiple charges, including theft and abuse of office, connected to the fraudulent transaction. The charges were brought following claims of false statements made by Union Bank to induce a fraudulent sale of loans and bank guarantees for Arik Air.
According to the EFCC, Union Bank is accused of falsely stating in 2011 that it facilitated a loan for Arik Air, resulting in a misleading transfer of NGN71 billion (USD46 million) to AMCON. Additionally, Kuru, Omokide, and Ilegbodu are charged with unlawfully converting NGN4.9 billion (USD3 million) of Arik Air’s assets for NG Eagle’s use in 2022. All defendants have pled not guilty and are currently out on bail of NGN20 million (USD13,000).
On March 17, Peter Omokaro, a former assistant manager at Union Bank, testified that Arik Air initially sought assistance for purchasing an aircraft, for which the bank provided guarantees but did not disburse any cash. In 2009, after Union Bank was taken over by the Central Bank of Nigeria, the institution sold its guarantees to AMCON, despite Arik Air not being part of the discussions to rectify an apparent misstep.
Omokaro clarified that there was no loan issued to Arik Air by either Union Bank or the foreign banks involved, asserting that Arik Air had made all payments punctually. He indicated that the bank’s conversion of the guarantee into cash led to the current allegations of fraud. The court has admitted five documents as evidence for the trial, which has been postponed until March 19.
Concurrently, AMCON is working to recover significant debts, totaling NGN455 billion (USD297 million) from Arik Air and its affiliated companies, which have been under its receivership since February 2017. AMCON spokesman Jude Nwauzor has criticized airline founder Johnson Arumemi-Ikhide for his lack of cooperation and for distributing inaccurate information regarding the loan’s status. AMCON is focused on legally retrieving the outstanding debts, which have accumulated since the airline’s receivership.
The ongoing trial concerning Arik Air’s alleged fraudulent dealings highlights serious allegations against Union Bank and AMCON officials regarding financial misconduct. With the defendants maintaining their innocence, the testimony presented thus far underscores the complexities involved in the case, particularly concerning the financial arrangements made between the bank and Arik Air. Additionally, AMCON’s efforts to recover significant debts from the airline reflect the broader implications of this legal scrutiny.
Original Source: www.ch-aviation.com
