The Zonal Director of Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission (EFCC), Bawa Usman Kaltungo, on Tuesday told a Special Offences Court sitting in Ikeja, Lagos, that Arik Air Nigeria Limited had repaid 38 per cent of its foreign loan obligations to creditors before its takeover by the Asset Management Corporation of Nigeria (AMCON).
Kaltungo gave the testimony while being led in evidence-in-chief by EFCC counsel, Dr Wahab Shittu, SAN, in the ongoing trial over an alleged N76 billion and $31.5 million fraud case 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 Plc, and Super Bravo Limited before Justice Mojisola Dada.
They are facing a six-count charge bordering on conspiracy, stealing, and abuse of office.
The witness told the court that at the time AMCON took over Arik Air, Union Bank had converted a N51 billion guarantee linked to the airline but allegedly failed to remit the funds to foreign creditors.
According to him, EFCC findings showed that Union Bank, which acted as guarantor of the loan, retained the N51 billion without fulfilling its obligation to settle the foreign lenders.
“Arik Air had paid 38 per cent of its loan to foreign creditors, but when Union Bank converted the N51 billion guarantee, it did not pay the foreign creditors from the funds,” he said.
He added that the investigation established that “Union Bank sat on the N51 billion” and that the amount should have been used to settle outstanding obligations to the foreign creditors.
Kaltungo further maintained that Union Bank did not directly grant any loan to Arik Air, explaining that the facility was a foreign credit obtained from institutions, including HSBC, which the airline serviced until June 2010.
He also told the court that a letter recovered during the investigation, addressed to former Arik Air Chairman Johnson Arumemi-Ikhide, indicated that the loan was still performing at the time.
Under cross-examination by Prof. Taiwo Osipitan, SAN, the witness said no funds were traced to the accounts of the first and second defendants during the investigation.
He also confirmed that the EFCC did not engage a forensic accountant to determine the full status of Arik Air’s indebtedness.
Kaltungo, who identified himself as the lead investigator, further told the court that he does not have an accounting background.
“There was no need for a forensic audit or an accounting background, as my position as investigator was sufficient,” he said.
In count one, the prosecution alleged that Union Bank of Nigeria Plc, in or about 2011, made false statements to the Asset Management Corporation of Nigeria (AMCON) regarding Arik Air’s performing loans, leading to the transfer of a purported N71 billion to AMCON.
Count two alleges that Kuru, Omokide, and Ilegbodu, in or about 2022, fraudulently converted N4.9 billion belonging to Arik Air Limited for the use of NG Eagle Limited.
Justice Mojisola Dada adjourned the case until May 18 for continuation of cross-examination.
