Alleged 76bn, $31.5m Fraud: EFCC Presents First Witness Against Ex-Amcon MD, Four Others in Lagos

The Economic and Financial Crimes Commission, EFCC, on Monday, March 17, 2025, presented its First Prosecution Witness, PW1, Peter Omokaro, a former Assistant General Manager, Treasury, Union Bank of Nigeria, in the trial of a former Managing Director of Assets Management Corporation of Nigeria AMCON,  Ahmed Kuru and four others for allegedly defrauding Arik Airline N76 billion and $31.5 million, respectively, before Justice Mojisola Dada of Special Offences Court sitting in Ikeja, Lagos.

Other defendants are,  former Receiver Manager of Arik Airline Ltd., Kamilu Omokide; Chief Executive Officer of the airline, Capt. Roy Ilegbodu;  Super Bravo Ltd. and Union Bank Plc.

The defendants are being prosecuted on a six-count charge bordering on theft, abuse of office and stealing by dishonestly taking the property of another.

Count one reads: “That you, Union Bank Nigeria Plc, sometime in 2011 or thereabouts, in Lagos, within the jurisdiction of this Honourable Court, with the intention of causing and/or inducing unwarranted sale of Arik Air loans and bank guarantees with Union Bank, made false statements to the Assets Management Corporation of Nigeria,  AMCON), regarding Arik Air Limited’s performing loans, following which you transferred a bogus figure of N71, 000,000,000.00 (Seventy-One Billion Naira) to AMCON.”

Count two reads: “That you, Ahmed Lawal Kuru, Kamilu Alaba Omokide as Receiver Manager of Arik Air Limited, and Captain Roy Ilegbodu, Chief Executive Officer of Arik Air Limited in Receivership, sometime in 2022 or thereabout, in Lagos, within the jurisdiction of this honourable court, fraudulently converted to the use of NG Eagle Limited the total sum of N4,900,000,000.00 (Four Billion Nine Hundred Million Naira only), property of Arik Air Limited”.

The defendants, however, pleaded “ not guilty” to all the six-count charges when they were read to them.

At the resumed hearing on Monday, Omokaro told the court that he worked with the bank from 1980 to 2015.

Led in evidence by the prosecution counsel, Wahaab Shittu, SAN, the PW1 also told the court that he was invited by the EFCC to make a statement in relation to the fraud case.

According to him, Arik Air approached the bank for a purchase of an aircraft, adding that “Union Bank only guaranteed facilities secured by the airline from two foreign banks, HSBC Bank and US EXIM Bank, to facilitate the acquisition of the aircraft from Airbus and Boeing.

“ Union Bank, in turn, collected indemnity from Arik Air and the aircraft was delivered.

“At no point did we disburse cash for the acquisition of the aircraft. And in August 2009, the Central Bank of Nigeria, CBN, sent a team to take over the bank. But there was AMCON guideline that talks on eligible assets to buy non-performing loans and commercial papers.

“Thereafter, the executive management of Union Bank went ahead to sell the guarantee to AMCON.  This happened before the end of December 2010.  In early 2011, when Union Bank discovered the error and tried to see how to legalize the wrong, a meeting took place in London between AMCON, Union Bank, HSBC Bank and US EXIM Bank,  with the exclusion of the main obligor, which was Arik Air.”

Omokaro further told the court that it was from the minutes of the meeting recorded that Union Bank wanted to step in as obligor to take over the responsibility of Arik Air.

In his further testimony, the PW1 told the court that the foreign credit agencies did not call in the guarantee neither did Union Bank return call in indemnity.

The witness reiterated that he was surprised about the claim that Union Bank granted a loan.  According to him, “Union Bank never gave loan to Arik Air.  Union Bank converted the guarantee to cash and used it to collect money from AMCON.

The primary lender did not call in the guarantee neither did the bank call in the guarantee for Arik Air. Union Bank did not disburse cash for the acquisition of the aircraft.  In respect of this transaction, there was no default on the part of Arik because payments were up to date.”

The prosecution sought to tender five documents relating to the transaction and they were admitted as evidence by the court.

The witness, under cross-examination by the counsel to the first and third defendants, Taiwo Osipitan, SAN, confirmed that the defendants were not part of the transaction.  The first and third defendants were not part of the transaction. I myself was not in the London meeting,” he said.

The witness, while responding to questions from  counsel to Kuru,  Olasupo Shasore, SAN, said the transaction took place in 2010 and that the third defendant was not the MD of AMCON at the time.

When asked by counsel to Union Bank, Olalekan Ojo SAN, to confirm to the court that he once sued the bank after the sudden termination of his appointment, he answered in the affirmative.

Justice Dada adjourned the matter till  Wednesday, March 19, 2025 for continuation of trial.

Credit: Economic and Financial Crimes Commission (EFCC)