The Special Offences Court in Lagos is hearing a case involving fraud linked to Arik Air, Union Bank, and AMCON. The EFCC is prosecuting several individuals and organizations for fraudulent transactions totaling over NGN76 billion. The trial includes allegations against Union Bank, taking away Arik Air’s property, and AMCON is pursuing the recovery of substantial debts from the airline.
The Special Offences Court in Lagos, Nigeria, has commenced hearings regarding an alleged fraudulent case involving Arik Air, Union Bank Nigeria Plc, and the Assets Management Corporation of Nigeria (AMCON). The Economic and Financial Crimes Commission (EFCC) is prosecuting several parties, including Ahmed Kuru, the former managing director of AMCON, alongside Union Bank and several others for fraudulent transactions amounting to approximately NGN76 billion (USD49.5 million) and USD31.5 million associated with Arik Air.
The prosecution has filed a six-count charge against the defendants, citing offenses such as theft and abuse of office. Allegations against Union Bank include the submission of false statements in 2011 to AMCON that purportedly led to a fraudulent transfer of NGN71 billion (USD46 million) related to Arik Air’s loans and bank guarantees. Additionally, Kuru, Omokide, and Ilegbodu are accused of misappropriating NGN4.9 billion (USD3 million) in property for a company called NG Eagle in 2022.
During recent testimony, former Union Bank assistant manager, Peter Omokaro, explained that Arik Air had sought financial assistance from the bank for an undisclosed aircraft purchase, for which Union Bank provided guarantees but did not issue any cash. Omokaro clarified that despite taking over Union Bank in 2009, the bank did not extend a loan to Arik Air, whose payments were reported to be current.
The court acknowledged five documents related to the fraudulent transaction and has scheduled further hearings for March 19. Concurrently, AMCON is actively pursuing the recovery of NGN455 billion (USD297 million) in debts from Arik Air and its affiliated companies, stating uncooperative behavior from Arik Air’s founder, Johnson Arumemi-Ikhide. As of December 31, 2024, Arik Air’s total debt to AMCON stood at NGN227.6 billion (USD148 million).
The ongoing trial against Ahmed Kuru and others highlights significant allegations of fraud involving Arik Air and Union Bank, underscoring the complexities of financial transactions and corporate governance in Nigeria. With substantial debts owed to AMCON, the outcomes of the trial and AMCON’s recovery efforts may have lasting implications for the airline industry in Nigeria. Stakeholders maintain that the legal proceedings will clarify the responsibilities and financial obligations involved.
Original Source: www.ch-aviation.com
