Nigerian Court Proceedings on Arik Air Fraud Case and AMCON Debt Recovery
The Special Offences Court in Lagos is hearing a fraud case involving Arik Air, wherein several defendants, including former AMCON managing director Ahmed Kuru, face charges related to significant financial misconduct. Testimony from Union Bank’s ex-assistant manager suggests fraudulent actions regarding loans and guarantees. Meanwhile, AMCON is focused on recovering substantial debts from the airline, stressing legal measures for completion as proceedings develop.
The Special Offences Court in Lagos, Nigeria, is in session regarding allegations of fraudulent transactions involving Union Bank Nigeria Plc, the Assets Management Corporation of Nigeria (AMCON), and Arik Air. The Economic and Financial Crimes Commission (EFCC) is conducting the prosecution against several defendants, including AMCON’s former managing director, Ahmed Kuru, and others for fraud linked to over NGN76 billion (USD49.5 million) and USD31.5 million related to Arik Air.
The defendants, which include Arik Air’s former receiver manager Kamilu Omokide and current CEO Roy Ilegbodu, are facing charges of theft and abuse of office. These allegations stem from the alleged deceit of Union Bank toward AMCON in 2011, where false statements reportedly led to the improper sale of Arik Air’s loans, resulting in the transfer of NGN71 billion (USD46 million).
Further charges cite Kuru, Omokide, and Ilegbodu for unlawfully converting NGN4.9 billion (USD3 million) of Arik Air’s assets to benefit NG Eagle in 2022. The defendants, who are out on bail, have pleaded not guilty to the charges against them.
In the prosecution’s testimony given on March 17, Peter Omokaro, a former assistant manager at Union Bank, noted that Arik Air had sought the bank’s assistance in acquiring an aircraft. Despite securing guarantees from HSBC Bank and EXIM Bank, Union Bank did not actually disburse funds for the aircraft purchase.
Following the takeover of Union Bank by Nigeria’s Central Bank in 2009, a decision was made to sell the guarantees to AMCON in line with guidelines for addressing non-performing loans. Omokaro clarified that the meeting meant to address the situation excluded Arik Air. He insisted that no loan was granted by Union Bank and that payments from Arik were current, disputing claims of defaults.
The trial has included the admission of five documents as evidence, with proceedings set to continue on March 19. Concurrently, AMCON is pursuing the recovery of NGN455 billion (USD297 million) owed by Arik Air and associated firms, emphasizing legal channels for debt recovery as the airline has been under AMCON’s receivership since February 2017.
Despite AMCON’s ongoing efforts, the agency’s communications have criticized Arik Air’s founder for alleged non-cooperation regarding the settlement of debts, asserting that claims about the status of the loans are misleading. AMCON states that as of the end of December 2024, significant amounts remain outstanding from the airline and its affiliates.
In summary, the ongoing trial in Nigeria’s Special Offences Court highlights serious allegations of fraud involving Union Bank and Arik Air, with significant financial sums at stake. The prosecution’s case is supported by witness testimony that has called the credibility of actions taken by Union Bank into question. AMCON’s pursuit of substantial debts owed by Arik Air and its affiliates remains a pressing issue as legal proceedings continue, underscoring the gravity of the financial mismanagement within the airline sector.
Original Source: www.ch-aviation.com
