The Zonal Director of the Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission (EFCC), Bawa Usman Kaltungo, told a Special Offences Court in Ikeja on Tuesday that Arik Air Nigeria Limited had already repaid 38% of its foreign loan obligations before it was taken over by the Asset Management Corporation of Nigeria (AMCON).
Kaltungo made this statement while giving evidence in the ongoing trial involving alleged fraud of N76 billion and $31.5 million against former AMCON Managing Director Ahmed Kuru and four others. Kuru is standing trial alongside Kamilu Alaba Omokide, Capt. Roy Ilegbodu, Union Bank of Nigeria Plc, and Super Bravo Limited before Justice Mojisola Dada on a six-count charge involving conspiracy, theft, and abuse of office.
He told the court that when AMCON assumed control of Arik Air, Union Bank had already converted a N51 billion guarantee tied to the airline but allegedly failed to transfer the funds to the foreign creditors. According to EFCC findings, the bank held on to the money instead of using it to settle the outstanding debts.
Kaltungo explained that Arik Air had been servicing foreign loans from institutions such as HSBC until June 2010 and had paid about 38% of its obligations before the takeover. He also stated that a recovered letter addressed to former Arik Air chairman, Johnson Arumemi-Ikhide, showed the loan was still performing at the time.
During cross-examination, he admitted that no funds were traced to the accounts of the first and second defendants and that the EFCC did not engage a forensic accountant to assess Arik Air’s full debt profile. He also confirmed he is not an accountant but insisted his role as lead investigator was sufficient.
The prosecution alleged in count one that Union Bank made false statements to AMCON in 2011 about Arik Air’s loans, leading to a N71 billion transfer. In count two, Kuru, Omokide, and Ilegbodu were accused of fraudulently converting N4.9 billion belonging to Arik Air for NG Eagle Limited in 2022.
The case was adjourned to May 18 for continuation of cross-examination.
