An investigator with the Economic and Financial Crimes Commission (EFCC), Bawa Kaltungo, has described Arik Air receivership as fraudulent, telling the Lagos State Special Offences Court in Ikeja that the airline was not indebted to Union Bank of Nigeria.
Mr Kaltungo, who’s the Director of the EFCC Zonal Directorate 2 in Lagos, was the fourth prosecution witness in the trial of former Asset Management Corporation of Nigeria (AMCON) Managing Director Ahmed Kuru and 4 others, stated he had knowledgeable AMCON’s administration that Arik Air didn’t owe the financial institution.
“The foundation for the appointment of a receivership over Arik Air was fraudulent and faulty. There was no bad debt; it does not exist,” he stated on Monday.
The witness stated he led the EFCC crew that investigated a petition over the receivership. He maintained that Mr Kuru had in depth powers and unilaterally accredited the appointment of the receiver-manager.
The defence challenged this claim by tendering AMCON board resolutions referring to the appointment.
The prosecution objected to their relevance, arguing that the paperwork have been too distant from the problems earlier than the courtroom. But Mr Kuru’s lawyer, Uyi Giwa-Osagie, argued that the resolutions have been related to figuring out his consumer’s position in the choice.
Mr Giwa-Osagie stated Mr Kuru was not standing trial over AMCON’s basic energy to nominate a receiver-manager, however over the particular allegations. He argued that the board resolutions would assist set up the circumstances surrounding the appointment.
Trial decide Mojisola Dada admitted the paperwork, ruling that they emanated from AMCON’s board and have been licensed in accordance with Section 104 of the Evidence Act.
The ruling allowed the paperwork to be admitted as proof however didn’t decide whether or not the receivership was lawful or whether or not Mr Kuru acted with out the board’s authorisation.
Mr Kuru is standing trial alongside former receiver-manager Kamilu Alaba Omokide, Arik Air Chief Executive Officer Roy Ilegbodu, Union Bank of Nigeria Plc and Super Bravo Limited. They face a six costs of conspiracy, stealing and abuse of workplace. All 5 defendants pleaded not responsible.
Dispute over overseas mortgage
During an earlier sitting on 28 April, Mr Kaltungo informed the courtroom that Arik Air had paid 38 per cent of its overseas mortgage earlier than AMCON took over the airline, in keeping with an EFCC report of the proceedings.
He referred to a letter dated 4 October 2010 from Union Bank to Arik Air regarding quarterly repayments on an Airbus plane mortgage. The letter, recovered in the course of the investigation, confirmed that the airline was anticipated to make a compensation on the power, he stated.
Mr Kaltungo stated Arik Air obtained the mortgage from overseas lenders, together with HSBC, and had serviced it till June 2010.
He argued that the doc confirmed the power was performing, opposite to the claim that it was a non-performing mortgage.
According to the witness, Union Bank transformed a N51 billion assure right into a mortgage and transferred the claim to AMCON with out utilizing the funds to pay the overseas collectors.
“Arik has paid 38 per cent of its loan to foreign creditors,” he stated.
He alleged that the financial institution withheld the cash meant for the collectors and nonetheless owed Arik Air in respect of the quantity the airline had repaid.
Mr Kaltungo additionally informed the courtroom that investigators discovered greater than N2 billion in funds in the financial institution information after the receivership took impact on 8 March 2016.
On the proceeds from the sale of Arik Air shares, he famous that three plane had been revalued at $105.718 million, equal to about N32 billion.
He additional defined that solely N9.2 billion was utilized to the airline’s mortgage, leaving greater than N28 billion unaccounted for.
During cross-examination in April, Mr Kaltungo stated investigators didn’t hint cash to the accounts of Mr Kuru and Mr Ilegbodu.
These claims have but to be decided by the courtroom.
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The costs
The EFCC arraigned the defendants in January 2025 following a petition by Arik Air promoters and shareholders, represented by Femi Falana, a Senior Advocate of Nigeria (SAN), over the airline’s receivership and associated transactions.
One rely accuses Union Bank of constructing false statements to AMCON about Arik Air’s performing loans, resulting in the switch of what the prosecution describes as a bogus N71 billion debt.
Another accuses Messrs Kuru, Omokide and Ilegbodu of fraudulently changing N4.9 billion belonging to Arik Air for the usage of NG Eagle Limited in 2022.
The cost additionally alleges that the defendants authorised the dismantling and destruction of an Arik Air plane, registration quantity 5N-JEA and serial quantity 15058, valued at $31.5 million, in February 2022.
The defendants deny the allegations.
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