The Nigerian Special Offences Court is adjudicating a fraud case involving Arik Air, Union Bank, and AMCON. Defendants are accused of involvement in fraudulent transactions totaling over NGN76 billion and USD31.5 million. Testimonies reveal alleged falsehoods regarding loans and guarantees, with AMCON seeking to recover significant debts from Arik Air and its affiliates.
The Special Offences Court in Lagos, Nigeria, is currently hearing a fraud case involving Arik Air, Union Bank Nigeria Plc, and the Assets Management Corporation of Nigeria (AMCON). The Economic and Financial Crimes Commission (EFCC) is prosecuting Ahmed Kuru, former managing director of AMCON, and others, in relation to fraud amounting to NGN76 billion (USD49.5 million) and USD31.5 million linked to Arik Air’s finances.
The charges against Kuru, Union Bank, and others include theft and abuse of office. Union Bank is specifically accused of providing false statements to AMCON in 2011 that led to the improper sale of loans and bank guarantees associated with Arik Air, resulting in NGN71 billion (USD46 million) being fraudulently transferred to AMCON. Moreover, Kuru, former receiver manager Kamilu Omokide, and current CEO Roy Ilegbodu face allegations of converting NGN4.9 billion (USD3 million) of Arik Air’s assets for unauthorized use in 2022.
All defendants have pled not guilty and remain free on bail of NGN20 million (USD13,000). Testimony on March 17 by Peter Omokaro, a former assistant manager at Union Bank, detailed how Arik Air sought assistance from the bank to purchase an aircraft. Although the bank provided loan guarantees, it never disbursed cash for the purchase. Union Bank later attempted to rectify the situation by discussing the matter with AMCON and foreign banks, excluding Arik Air.
Omokaro underscored that Union Bank did not issue a loan to Arik Air nor was there any default on their part, asserting that all payments were current. He also confirmed that Union Bank converted guarantees into cash to obtain funds from AMCON, which has attracted the fraud allegations against them.
Throughout cross-examination, Omokaro revealed his previous legal action against Union Bank following the termination of his appointment. The court accepted five pertinent documents into evidence, and the trial is set to continue on March 19.
In parallel developments, AMCON is working to recover NGN455 billion (USD297 million) in debts owed by Arik Air and related companies. Arik Air has been under AMCON’s receivership since February 2017. AMCON’s spokesperson, Jude Nwauzor, criticized the airline’s founder for non-cooperation regarding the repayment and alleged the foundation’s misrepresentations about their financial status. As of December 31, 2024, Arik Air’s debts to AMCON totaled NGN227.6 billion (USD148 million).
The ongoing trial of the Arik Air fraud case highlights significant allegations involving high-profile financial institutions and regulatory bodies in Nigeria. With substantial amounts at stake and multiple defendants implicated, the outcome of this case may set critical precedents for financial oversight in the region. AMCON’s efforts to recover large accumulated debts from Arik Air further emphasize the airline’s troubled financial state and the importance of corporate accountability.
Original Source: www.ch-aviation.com
