The Nigerian Special Offences Court is hearing a fraud case involving Arik Air, AMCON, and Union Bank, with allegations amounting to NGN76 billion and USD31.5 million. The defendants face numerous charges, including theft and abuse of office. Testimonies reveal discrepancies in banking practices and efforts by AMCON to recover outstanding debts from Arik Air and associated entities.
A Nigerian court is currently hearing a case involving allegations of fraud linked to Arik Air. The Special Offences Court in Lagos is reviewing charges against Ahmed Kuru, the former managing director of the Asset Management Corporation of Nigeria (AMCON), Union Bank Nigeria Plc, and three others. The Economic and Financial Crimes Commission (EFCC) alleges that the group is involved in a fraudulent transaction amounting to NGN76 billion (approximately USD49.5 million) and USD31.5 million concerning Arik Air.
The defendants include Kamilu Omokide, former receiver manager of Arik Air, current CEO Roy Ilegbodu, and a company named Super Bravo Ltd. They are facing multiple charges primarily related to theft, abuse of office, and dishonest misappropriation of funds. Union Bank is specifically accused of making misleading statements to AMCON in 2011 to facilitate an unauthorized sale of loans related to Arik Air, which allegedly resulted in a transfer of NGN71 billion (USD46 million) to AMCON.
Specific accusations against Kuru, Omokide, and Ilegbodu include the improper conversion of NGN4.9 billion (USD3 million) of Arik Air’s assets for NG Eagle’s benefit in 2022. All defendants have pleaded not guilty and are currently on bail set at NGN20 million (USD13,000).
On March 17, Peter Omokaro, a former assistant manager at Union Bank, testified that Arik Air had sought financing for an aircraft purchase for which Union Bank provided loan guarantees to two foreign banks. However, he stated that neither Union Bank nor the foreign banks issued loans to Arik Air, asserting that the installment payments were current.
In early 2011, following a takeover by the Central Bank of Nigeria, Union Bank attempted to rectify mistakes regarding the sale of guarantees to AMCON but excluded Arik Air from critical discussions. Omokaro confirmed that Union Bank’s actions in cashing in the guarantees contributed to the fraud allegations. The court has accepted five documents as evidence, and the trial will resume on March 19.
Meanwhile, AMCON aims to recover NGN455 billion (USD297 million) in debts from Arik Air and associated companies under its receivership since February 2017. An AMCON spokesman accused Arik Air’s founder, Johnson Arumemi-Ikhide, of non-cooperation in settling the debts, which have accumulated despite claims of performing loans. As of December 31, 2024, Arik Air owes AMCON NGN227.6 billion (USD148 million), along with additional substantial debts from related firms.
The ongoing trial in the Nigerian Special Offences Court involves serious allegations of fraud against key figures associated with Arik Air and Union Bank. The case highlights issues of financial governance, accountability, and legal adherence in corporate transactions in Nigeria. AMCON’s efforts to recover substantial debts further underscore the financial challenges faced by the airline and its affiliates, revealing a complex web of financial misconduct and misalignment of stakeholder interests in the aviation sector.
Original Source: www.ch-aviation.com
