The Economic and Financial Crimes Commission (EFCC) on Tuesday informed a Special Offences Court in Ikeja, Lagos, that Arik Air had already settled 38 percent of its foreign loan obligations prior to its takeover by the Asset Management Corporation of Nigeria (AMCON).
Testifying before Justice Mojisola Dada, an EFCC prosecution witness, Bawa Usman Kaltungo—Zonal Director of EFCC Lagos Zonal Directorate 2—made the disclosure during the ongoing trial of former AMCON Managing Director, Ahmed Kuru, alongside four others over an alleged fraud involving ₦76 billion and $31.5 million.
Other defendants in the case include Kamilu Alaba Omokide, Capt. Roy Ilegbodu, Union Bank of Nigeria, and Super Bravo Limited. They are facing a six-count charge bordering on conspiracy, theft, and abuse of office.
Kaltungo told the court that investigations revealed that Union Bank, which guaranteed the loan, converted a ₦51 billion guarantee tied to Arik Air but failed to remit the funds to the foreign creditors.
According to him, “Arik Air had already repaid 38 percent of its foreign loan, but after Union Bank converted the ₦51 billion guarantee, the funds were not used to settle the creditors.” He stressed that the bank held on to the money instead of applying it toward the airline’s outstanding obligations.
The witness further explained that the loan facility was sourced from foreign institutions, including HSBC, and not directly issued by Union Bank. He added that Arik Air continued servicing the loan up until June 2010, indicating that it was performing at the time.
Kaltungo also referenced a letter obtained during investigations, addressed to former Arik Air Chairman, Johnson Arumemi-Ikhide, which confirmed the loan’s performing status.
However, under cross-examination, the EFCC witness admitted that investigators did not trace any funds to the accounts of the first and second defendants. He also acknowledged that no forensic audit was conducted to determine the airline’s total indebtedness, maintaining that his role as lead investigator was sufficient.
One of the charges alleges that Union Bank made false declarations to AMCON around 2011 regarding Arik Air’s loan status, resulting in the transfer of about ₦71 billion to the corporation. Another count accuses Kuru and others of fraudulently diverting ₦4.9 billion belonging to Arik Air for the benefit of NG Eagle Limited in 2022.
Justice Mojisola Dada subsequently adjourned the case until May 18 for continuation of cross-examination.