EFCC: AMCON transferred Arik’s assets before repayment deadline

He referred to a letter dated October 22, 2020, in which AMCON demanded payment of Arik Air’s outstanding debt within 90 days.

According to him, a simple calculation showed that the period between October 22, 2020, and December 31, 2020, was less than 90 days.

“Although the deed was not dated, simple arithmetic shows that from October 22, 2020, to December 31, 2020, is less than 90 days,” Kaltungo told the court.

He added that the 90-day grace period would have expired on January 20, 2021.

The witness further testified that while corporate restructuring is permissible, it must strictly comply with due process and established legal safeguards.

“It allows a corporation to form subsidiaries for expansion and revitalisation and to transfer shared assets to subsidiary companies,” he said. “However, such transfers must comply with the law, due process, safeguard the rights of all parties involved, and align with principles of good faith and human rights.”

Kaltungo told the court that there was nothing in the report before it to suggest that the advice of AMCON’s Legal and Regulatory Compliance (LRC) unit had been disregarded.

“There is nothing in this report to show that the advice given by the LRC was disregarded. Even if such advice is contained, it is that advice which the receivership would refer to, not what another official document might state,” he said.

On the transfer of Arik Air’s assets to Super Bravo, the witness said the LRC’s legal advice had emphasised that any such transfer should be effected through a deed of transfer between the relevant subsidiaries.

“From my point of view, the legal advice stressed that any transfer should involve a deed of transfer between the subsidiaries, for example, Super Bravo and Arik, to ensure proper documentation and transparency,” he said.

He told the court that there was a signed deed of transfer conveying three aircraft to Super Bravo by AMCON in 2020, but noted that the deed itself was undated.

According to him, this suggested that the transfer ought to have occurred after the expiration of the 90-day period on January 20, 2021, and not in 2020 as indicated.

He said effecting the transfer before the expiration of the grace period was capable of depriving Arik Air of its rights to the assets in the event that the debt was settled within the stipulated time.

“The transfer in these circumstances was capable of causing Arik to lose its right to the assets tied to the deed, if the debt had been paid before the end of the grace period,” he said.

Kaltungo further stated that such action “may be interpreted as acting in bad faith on the part of AMCON and the receiver-manager,” adding that the premature transfer “may also amount to a breach of exemption rights, as outlined in the President’s Conveyance Act 1571.”

The witness also told the court that Kuru’s management team ought reasonably to have known that AMCON lacked the capacity and expertise to run an airline.

“Despite this, he placed Arik Air under receivership against the express advice of his predecessor, Mr Mustafa Chike-Obi, who had previously resolved not to declare receivership over Arik Air,” he said.

The case was adjourned to April 28 and 29, 2026, for continuation of trial.