Nigerian Court Proceedings Center on Arik Air Fraud Allegations

The Nigerian Special Offences Court in Lagos is prosecuting a fraud case linked to Arik Air, involving Union Bank and AMCON. Former executives, including Ahmed Kuru, face allegations of misappropriating significant sums. Testimonies reveal discrepancies in loan handling, and AMCON aims to recover considerable debts from Arik Air, which has been under receivership since 2017.

The Special Offences Court in Lagos, Nigeria, is currently adjudicating a fraud case involving Union Bank Nigeria Plc and the Assets Management Corporation of Nigeria (AMCON) pertaining to the airline Arik Air. The Economic and Financial Crimes Commission (EFCC) is prosecuting Ahmed Kuru, AMCON’s former managing director, alongside Union Bank and three other defendants, including Kamilu Omokide, Arik Air’s former receiver manager, and current CEO Roy Ilegbodu. The alleged fraud includes misappropriation of over NGN76 billion (USD49.5 million) and USD31.5 million tied to the airline.

The defendants are facing multiple charges, including theft and abuse of office, with all of them pleading not guilty. Notably, the prosecution alleges that Union Bank made false statements in 2011 to AMCON, ostensibly leading to an improper sale of loans worth NGN71 billion (USD46 million) linked to Arik Air. Additional charges include claims against Kuru and others for converting NGN4.9 billion (USD3 million) of Arik Air’s property for unauthorized uses.

A pivotal moment in the trial occurred on March 17, when Peter Omokaro, former assistant manager at Union Bank, testified. He stated that Arik Air sought bank support for acquiring an aircraft, and while guarantees were provided for funds from international banks, Union Bank did not disburse any money for the acquisition. He also highlighted that a significant meeting regarding the financial error involving AMCON excluded Arik Air, which could alter the context of the allegations against the bank.

Omokaro confirmed that Arik Air was compliant with its payments and refuted claims that loans were issued. Following cross-examination, it was revealed that Omokaro had previously taken legal action against Union Bank for employment-related grievances. The trial, which has introduced crucial evidence in the form of five documents, has been adjourned until March 19.

Separately, AMCON has expressed its commitment to recovering NGN455 billion (USD297 million) in debts from Arik Air, which has been under receivership since February 2017. In a statement, AMCON criticized the airline’s founder, Johnson Arumemi-Ikhide, for failing to cooperate with debt recovery efforts while making misleading claims about the nature of Arik Air’s loans and the legitimacy of the receivership process. The amounts owed by Arik Air and affiliated companies are a substantial concern as AMCON strives to resolve the financial discrepancies as part of legal measures.

The ongoing trial against key figures associated with Arik Air highlights serious allegations of financial misconduct and fraud involving substantial sums. The testimonies presented indicate procedural missteps by Union Bank and other parties, with attempts made by AMCON to retrieve significant debts from Arik Air, which underscores the complexities faced in the airline’s financial dealings. The court’s proceedings are pivotal in determining accountability and the future implications for the airline and its management.

Original Source: www.ch-aviation.com