The Special Offences Court in Lagos is examining a fraud case involving Union Bank and AMCON linked to Arik Air, centering on significant financial misconduct allegations. The EFCC prosecutes several defendants, including former executives, over a total of NGN76 billion and USD31.5 million reportedly misappropriated. Testimonies reveal unexplained transactions and intentions behind loan guarantees. AMCON is actively seeking to recover substantial debts owed by Arik Air.
The Special Offences Court in Lagos, Nigeria, is currently hearing testimony regarding a fraudulent transaction involving Union Bank Nigeria Plc and the state-owned Assets Management Corporation of Nigeria (AMCON), pertaining to Arik Air. The Economic and Financial Crimes Commission (EFCC) has initiated prosecution against AMCON’s former managing director, Ahmed Kuru, Union Bank, and three others over a fraud case linked to NGN76 billion (USD49.5 million) and USD31.5 million associated with Arik Air.
The defendants, which include the airline’s former receiver manager, Kamilu Omokide, the current CEO Roy Ilegbodu, and Super Bravo Ltd, face six counts of charges related to theft and abuse of office. Union Bank is specifically accused of making misleading statements in 2011 that allegedly resulted in the erroneous sale of Arik Air’s loans for a fraudulent amount of NGN71 billion (USD46 million). Furthermore, Kuru, Omokide, and Ilegbodu are specifically accused of misappropriating NGN4.9 billion (USD3 million) of Arik Air’s assets for NG Eagle’s benefit in 2022.
All defendants have entered pleas of not guilty and are on bail set at NGN20 million (USD13,000). In testimony on March 17, Peter Omokaro, a former assistant manager at Union Bank, revealed that Arik Air approached the bank for support in acquiring an undisclosed aircraft, with the bank providing guarantees for foreign loans. He clarified that no cash was disbursed for the purchase.
Following a takeover by the Central Bank of Nigeria (CBN) in August 2009, Union Bank attempted to rectify its misguided sale of loan guarantees to AMCON before 2010. However, key parties, including Arik Air, were excluded from critical discussions regarding the matter. Omokaro confirmed that Union Bank had not issued a loan to Arik Air and stated that payments were current, contradicting claims of defaulting.
The court accepted five documents related to the transaction into evidence, and the trial will continue on March 19. Simultaneously, AMCON seeks to recover NGN455 billion (USD297 million) owed by Arik Air. Since being placed under receivership in February 2017, there has been criticism of the airline’s founder, Johnson Arumemi-Ikhide, for alleged uncooperativeness and misleading statements about the loan status.
In summary, the ongoing trial highlights serious allegations of fraud involving Union Bank and AMCON concerning Arik Air. The court proceedings have drawn attention to how financial irregularities can impact state-owned enterprises and financial institutions. AMCON’s efforts to recover substantial debts from Arik Air further illustrate the broader implications of this case on Nigeria’s financial landscape.
Original Source: www.ch-aviation.com
