How ex-AMCON MD diverted Arik Air funds, by EFCC witness
An Ikeja Special Offences Court has heard that a former Managing Director of the Asset Management Corporation of Nigeria, Ahmed Lawan Kuru, diverted funds belonging to Arik Air to settle
An Ikeja Special Offences Court has heard that a former Managing Director of the Asset Management Corporation of Nigeria, Ahmed Lawan Kuru, diverted funds belonging to Arik Air to settle insurance liabilities owed by Umza Aviation Services Limited while serving as Receiver-Manager of Arik Air.
An Assistant Director of the Economic and Financial Crimes Commission (EFCC), Bawal Usman Kaltungo, made the disclosure yesterday while testifying before Mojisola Dada, with prosecuting counsel, Dr Wahab Shittu (SAN), leading the evidence.
Kuru and other defendants are standing trial over an alleged fraud involving N76 billion and $31.5 million.
Others charged include Kamilu Alaba Omokide, also a Receiver-Manager of Arik Air; Captain Roy Ilegbodu, Managing Director of Arik Air; Union Bank Plc; and Super Bravo Limited.
The defendants are facing counts of conspiracy, stealing, abuse of office and making false statements in connection with the alleged fraudulent conversion of assets belonging to the defunct Arik Air Limited.
Kaltungo told the court that investigations revealed Arik Air’s funds were used to settle insurance obligations belonging to Umza Airline.
He said: “In the course of our investigation, we discovered that Arik Air’s money was used to pay for the insurance of Umza Airline.
“We invited Umza Airline, which confirmed the transaction. We also found that Umza Aviation Services had commenced repayment, but the repayment was not concluded as at the time of the investigation.”
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The EFCC witness further testified that investigators discovered that AMCON opened several accounts for Arik Air and assigned an account officer to manage the airline’s loan.
“We invited the account officer, who provided a statement of the loan account, signed by him and one Justin Akune. The statement was submitted to the Commission with a covering letter,” he said
.According to him, the purpose was to determine whether the Receiver-Manager was performing the duty for which he was appointed. “However, we discovered that the Receiver-Manager was not doing so,” Kaltungo added.
He also told the court that during the investigation, the first defendant, Omokide, wrote a petition to the Attorney-General of the Federation, alleging harassment and seeking a halt to the investigation.
He said: “My team leader received copies of the petition, which had 39 attachments.
“The petition was accompanied by a legal opinion issued through the Solicitor-General. Essentially, it was requesting that the investigation be stopped.”
The petition and its annexures were admitted in evidence by the court.
Kaltungo further testified that the EFCC extended its investigation to the Central Bank of Nigeria (CBN), where it obtained a Certified True Copy of the minutes of the 494th meeting of the CBN Committee of Governors, at which approval was given for the appointment of a Receiver-Manager for Arik Air.
He said the takeover of the airline followed about a week after the approval.
He listed those present at the meeting to include Godwin Emefiele, then CBN Governor and Chairman of the Committee; Sulaiman A. Barau, Deputy Governor, Corporate Services; Sarah O. Alade, Deputy Governor, Economic Policy; Okwu J. Nnanna, Deputy Governor, Financial System Stability; Adebayo A. Adelabu, Deputy Governor, Operations; Yunusa Sanusi, Director of Corporate Secretariat; Ahmed Kuru, then AMCON Managing Director; Ahmed Abdullahi, Director of Banking Supervision; and Aderonke Aderayo, Senior Manager, Banking Supervision.
According to the witness, the resolution presented by Kuru sought the takeover of Arik Air.
He said the chairman of the meeting disclosed that the airline’s condition had deteriorated and required urgent intervention.
“He stated that Arik Air, which carried about 60 per cent of passenger traffic in the country, could collapse within two weeks if not rescued,” Kaltungo said.
He added that the airline had paid out cash collaterals to its technical partners, including Lufthansa, and allowed them to exit Nigeria, indicating that the owner had effectively abandoned the airline.
The witness said major creditor banks agreed that CBN intervention was necessary.
When the prosecution sought to tender a Certified True Copy of an insurance certificate allegedly linked to the Umza transaction, defence counsel objected.
Senior advocates Taiwo Osipitan, Oyinkan Badejo, Olalekan Ojo and Tayo Oyetibo, appearing for the first to fifth defendants, argued that the document was not related to any of the six counts in the charge and did not refer to the diversion of Arik Air funds.
Shittu argued that the defendants were charged with abuse of office and stealing, urging the court to admit the document, noting that it was duly certified.
In a bench ruling, Justice Dada held that the insurance certificate was not listed among the documents supporting the six-count charge and therefore rejected it.
The trial continues today.
