Alleged N76bn Fraud: Arik Had Repaid 38% of Foreign Loan Before AMCON Takeover

By Adebola Isimijola

An investigator with the Economic and Financial Crimes Commission (EFCC), Bawa Usman Kaltungo, on Tuesday told an Ikeja Special Offences Court that Arik Air Limited had repaid 38 per cent of its foreign loan before the airline was taken over by the Asset Management Corporation of Nigeria (AMCON).

Kaltungo gave the testimony before Justice Mojisola Dada while being led in evidence-in-chief by EFCC counsel, Dr Wahab Shittu (SAN), in the ongoing trial of a former AMCON Managing Director, Ahmed Kuru, and four others over an alleged N76 billion and $31.5 million fraud.

Kuru is standing trial alongside Kamilu Alaba Omokide, Capt. Roy Ilegbodu, Union Bank of Nigeria Plc and Super Bravo Limited on a six-count charge bordering on conspiracy, stealing and abuse of office.

The witness told the court that at the time AMCON intervened, Union Bank had converted Arik’s N51 billion guarantee, sold it, but failed to remit the proceeds to the foreign creditors.

According to him, EFCC investigations showed that the bank, which acted as guarantor for the facility, withheld the funds instead of meeting its obligations to the lenders.

“Arik had already paid 38 per cent of the loan to foreign creditors. However, when Union Bank converted the N51 billion guarantee, it did not pay the creditors,” he said.

“Union Bank sat on the funds. Our investigation revealed that the bank is still owing Arik the 38 per cent already repaid.”

Kaltungo maintained that the loan was not granted by Union Bank but was a foreign facility obtained from institutions, including HSBC, which Arik serviced until June 2010.

He added that a letter recovered during investigation and addressed to the airline’s former Chairman, Johnson Arumemi-Ikhide, indicated that the loan was performing at the time.

Under cross-examination by defence counsel, Prof. Taiwo Osinpitan (SAN), the witness admitted that no funds were traced to the accounts of the first and second defendants.

He also confirmed that the commission did not engage a forensic accountant to determine Arik’s indebtedness and that he does not have an accounting background.

“There was no need for a forensic audit or accounting background. My position as lead investigator was sufficient,” he said.

The prosecution, in count one, alleged that Union Bank, in or about 2011, made false representations to AMCON regarding Arik Air’s loan status, which led to the transfer of a purported N71 billion to the agency.

In count two, it alleged that Kuru, Omokide and Ilegbodu, in 2022 or thereabouts, fraudulently diverted N4.9 billion belonging to Arik Air to NG Eagle Limited.

Justice Dada adjourned the case until May 18 for continuation of cross-examination.