Arik Air Loan Sh*ck! Economic And Financial Crimes Commission Witness Reveals 38% Debt Repayment Before AMCON Takeover

The Economic and Financial Crimes Commission has told a Special Offences Court sitting in Ikeja, Lagos, that Arik Air had already repaid about 38 percent of its foreign loan obligations before its eventual takeover by the Asset Management Corporation of Nigeria (AMCON).....KINDLY READ THE FULL STORY HERE▶

This disclosure was made by EFCC witness Bawa Usman Kaltungo, the Zonal Director of EFCC Lagos Zonal Directorate 2, while testifying before Justice Mojisola Dada in the ongoing trial involving former AMCON Managing Director Ahmed Kuru and four others.

Kuru is standing trial alongside Kamilu Alaba Omokide, Capt. Roy Ilegbodu, Union Bank of Nigeria, and Super Bravo Limited over allegations bordering on conspiracy, stealing, abuse of office, and fraud involving N76 billion and $31.5 million.

The witness told the court that EFCC findings showed that Union Bank, which acted as guarantor for the loan, converted a N51 billion guarantee tied to Arik Air but allegedly failed to pass the funds on to foreign creditors.

He stated that while Arik Air had serviced 38 percent of the loan, the converted funds were not used to settle outstanding obligations abroad, adding that the money “was not remitted to the foreign creditors.”

Kaltungo further alleged that the funds were instead retained by Union Bank, despite being meant to settle external loan commitments.

He explained that the loan facility originated from foreign lenders, including HSBC, and not directly from Union Bank, noting that Arik Air had continued servicing the facility up to June 2010 when it was still performing.

According to him, documentary evidence presented during investigation, including correspondence to former Arik Air chairman Johnson Arumemi-Ikhide, confirmed the loan was performing at the time.

Under cross-examination, the witness admitted that investigators did not trace any funds to the accounts of the first and second defendants and also confirmed that no forensic accountant was engaged to assess the full indebtedness.

However, he maintained that his role as lead investigator was sufficient for the findings presented.

The prosecution also alleged that Union Bank made misleading statements to AMCON in 2011 about Arik Air’s loan status, which led to the transfer of about N71 billion to the corporation. Another count accused Kuru and others of unlawfully converting N4.9 billion belonging to Arik Air for the benefit of NG Eagle Limited in 2022.

Justice Mojisola Dada adjourned the matter to May 18 for continuation of cross-examination.