The Economic and Financial Crimes Commission (EFCC) presented its second prosecution witness, Austine Obegwe, in the ongoing trial of Ahmed Kuru, the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), and four others, over the alleged misappropriation of N76 billion and $31.5 million belonging to Arik Air. The trial is taking place before Justice Mojisola Dada at the Special Offences Court in Ikeja, Lagos.
The other defendants in the case include Kamilu Omokide, a former Receiver Manager of Arik Air; Captain Roy Ilegbodu, CEO of Arik Air; Super Bravo Ltd.; and Union Bank Plc. They face a six-count charge related to theft, abuse of office, and the dishonest conversion of property.
Among the charges against Union Bank is an allegation that, in 2011, the bank provided false statements to AMCON regarding Arik Air’s performing loans, which led to an inflated debt figure of N71 billion being transferred to AMCON. Another charge accuses Kuru, Omokide, and Ilegbodu of fraudulently diverting N4.9 billion of Arik Air’s funds to NG Eagle Ltd. in 2022.
All defendants have pleaded “not guilty” to the charges.
In Wednesday’s proceedings, Obegwe, a retired Group Executive Director of Corporate and International Banking at Union Bank, testified about his role in managing key transactions between Union Bank, Arik Air, and international financiers such as US EXIM Bank and HSBC Germany. He explained that Union Bank provided guarantees for Arik Air’s aircraft purchases, ensuring that loans covering up to 85% of the costs were secured without defaults.
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Obegwe confirmed that, during his tenure, “all facilities extended to Arik Air were performing,” meaning there were no defaults, and stated that Union Bank never requested to sell its financial obligations related to Arik Air’s assets during his time at the bank.
EFCC lead counsel Wahaab Shittu (SAN) sought to tender documents related to the disputed transactions. However, defense lawyers objected, arguing that the witness was neither the author of the documents nor a member of the investigation team. Justice Dada upheld the objection, ruling that the documents could not be tendered.
During cross-examination, defense attorneys, including Taiwo Osipitan (SAN) and Olasupo Shasore (SAN), presented several documents, which the court admitted as exhibits.
The trial has been adjourned to May 19 and 28, 2025, for further proceedings.
