From Sola Ojo, Abuja
Justice Mojisola Dada of the Special Offences Court in Ikeja, Lagos, on Wednesday, May 28, adjourned the trial of Mallam Ahmed Kuru, former Managing Director of the Assets Management Corporation of Nigeria (AMCON), and four others to June 4, over an alleged N76 billion and $31.5 million fraud.
Kuru, alongside Capt. Roy Ilegbodu, Managing Director of Arik Air; Kamilu Omokide, Receiver Manager of Arik Air; Union Bank Nigeria Plc; and Super Bravo Limited, faces a six-count charge bordering on conspiracy, stealing, and abuse of office related to the alleged fraud.
At the resumed sitting on Wednesday, the second prosecution witness (PW2), Austine Obigwe, a former Group Executive Director of Union Bank Plc, testified that in 2011, two years after leaving Union Bank, Arik Air owed his company, Staal, $2.3 million.
“I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he said.
During cross-examination by defence counsel, including Olasupo Shasore, SAN (for the second defendant); Olalekan Ojo, SAN (for the fourth defendant); and Tayo Oyedepo, SAN (for the fifth defendant), Obigwe confirmed that after exiting Union Bank, he began consultancy engagements with Arik Air and other companies.
When asked if Johnson Arumemi-Ikhide, founder of Arik Air, was a personal acquaintance, he responded affirmatively, adding: “I currently don’t have any formal relationship with the airline; I maintain a relationship with Arumemi-Ikhide.”
Obigwe testified that he participated in a 2009 inspection of 26 Arik Air aircraft, assessed by Lufthansa as airworthy and in good condition.
“I had no reason to doubt Lufthansa’s evaluation,” he said, noting the inspection ensured the airline’s fleet had not been depleted.
On Arik Air’s loan compliance, Obigwe stated that during his tenure at Union Bank, there were no complaints from other financial institutions indicating Arik Air was defaulting on its loan obligations, and the airline was servicing its loan with Union Bank.
Regarding a letter dated April 23, 2009, allegedly from AMCON to Union Bank about a N46.11 billion debt owed by Arik Air, Obigwe said it was not brought to his attention while he was at the bank.
Commenting on Arik Air’s management, he said, “I can only speak for the period I was there. When I was at Union Bank, Arik Air was one of the best companies.”
When asked about options for lenders facing non-performing loans, Obigwe explained that a lender might transfer the loan to another bank, reassign it, or enforce the security tied to the loan, adding, “A lender is legally empowered to dispose of the security in the event of default by the borrower.”
The trial was adjourned to June 4 for continuation.