A former Executive Director of the Asset Management Corporation of Nigeria, Mr. Abbas Muhammed Jega continued his testimony during the ongoing case of the former AMCON MD/CEO, Ahmed Kuru.

Former AMCON MD, others trial
The former Managing Director, is being prosecuted by the Economic and Financial Crimes Commission, EFCC, alongside Mr. Kamilu Omokide, a former receiver manager of Arik Air Limited; Captain Roy Ilegbodu, Arik Air Chief Executive Officer; Union Bank Limited; and Super Bravo Limited.
The former executive on Wednesday at the ongoing case of the former AMCON MD was confronted with several loan and purchase documents, including a ₦37 billion Loan Purchase Agreement dated December 2010.
He was being asked series of questions before the trial judge, Justice Mojisola Dada of the Special Offences Court, Ikeja during cross-examination as the third prosecution witness.
The commission charged the defendants to court for allegedly defrauding Arik Air of N76 billion and $31.5 million.
The defendants are charged to court on a six-count charge bordering on conspiracy, stealing, and abuse of office.
Responding to questions by Mr. Olalekan Ojo, SAN, Jega, stated that AMCON had acquired loans worth ₦37 billion, guarantees of ₦33.8 billion, and indemnities totaling ₦71 billion from Union Bank.
According to him, AMCON only discovered some key facts concealed by Union Bank after an internal audit.
When the witness was asked if AMCON reported the alleged misrepresentation to law enforcement agencies, he said “No”.
But told the court that AMCON lodged a formal complaint with the Central Bank of Nigeria, CBN.
Jega also told the court that the details were missing from his prior statement to the Commission.
In addition, the prosecution witness identified several letters he authored between 2012 and 2014 , confirming AMCON’s full takeover of Arik Air’s indebtedness from Union Bank, amounting to over ₦71 billion.
While he admitted that the loans were already “crystallised” at the time of purchase, Jega said internal inconsistencies and documentation lapses by Union Bank eventually ignited the dispute.
When asked if Arik Air fulfilled its equity contribution obligations in the aircraft financing arrangements, he said he could not recall.
Dr. Wahab Shittu, SAN, raised concerns in the court to stop further cross-examination of his witness, having appeared more than four times for cross-examination in the trial, the judge corrected his claim based on the court record, stating that Mr. Jega had only appeared three times as a witness in the proceeding.
She explained that since Mr. Jega had made himself available as a witness to the ongoing matter, he must be cross-examined by all the defence counsel.
During cross-examination by Tayo Oyetibo, SAN, the witness admitted that Arik Air did not submit any written protest during the loan transaction but made oral complaints questioning AMCON’s involvement in the deal.
He confirmed that he did not document any protest from Arik Air or officially report Union Bank’s alleged non-disclosure to the AMCON Board, though he orally informed board members about his concerns.
“Arik Air later requested a restructuring of the loan, and there was a business need for that restructuring.
“I forwarded the request to AMCON management for approval.”
During cross-examination by Prof. Taiwo Osipitan, SAN, Jega reversed himself, revealing that by the time he left AMCON in 2015, the loan had already fallen into the non-performing category as defined by financial regulators.
He stated that AMCON purchased N85 billion worth of Arik’s debt from Union Bank and Bank PHB, and later advanced an additional N11 billion to the airline as working capital, but the airline failed to meet its repayment obligations.
Jega said, “Although I was the Executive Director of Credits and acted with board approval, I never saw the actual loan purchase agreement detailing the full breakdown of the Arik loan, particularly the one from Union Bank.”
Jega noted that Union Bank represented the loans as performing and produced meeting minutes from a London meeting between Arik and AMCON management to support this claim.
However, those minutes, according to Jega, were authoured solely by Union Bank.
“It was only after AMCON bought the loan that we began to realise there were underlying issues with the documentation,” he said.
Jega also admitted that Arik Air and its promoters had multiple outstanding loans with AMCON, apart from those under dispute in the current trial.
Responding to further questions from Mr. Olasupo Shasore, SAN, counsel to former AMCON MD Ahmed Kuru, the prosecution witness disclosed that Arik’s chairman once approached him for a consultancy role at the airline.
“I was advised against accepting the offer, and I declined. My relationship with all clients remained strictly professional,” he said.
Justice Dada adjourned further proceedings till November 28 for continuation of trial.
