Justice Mojisola Dada of Special Offences Court, sitting in Ikeja, Lagos on Wednesday heard how a former Managing Director of Asset Management Corporation of Nigeria, AMCON, Ahmed Kuru, allegedly diverted Arik money to pay NEM Insurance company for insurance cover for Umza Airline.
The Economic and Financial Crimes Commission, EFCC, Bawa Usman Kaltungo, an Investigative Officer disclosed this in continuation of evidence being led by prosecution counsel Dr. Wahab Shittu, SAN, in an ongoing trial of the former AMCON boss and other defendants.
Kuru, alongside others are standing trial over an alleged fraud involving N76 billion and $31.5 million.
The witness further told court that Kuru diverted funds belonging to Arik Air to offset insurance liabilities owed by Umza Airline while serving as Receiver Manager of Arik Air.
“In the course of investigation, we discovered that Arik Air’s money was used to pay the insurance of Umza Airline.
“We invited Umza Airline, which confirmed the development. We also found that Umza Aviation Services had commenced repayment, but had not concluded it as at the time of investigation.
“We invited the account officer, who provided the statement of the loan account signed by him and one Justin Akune. The statement was submitted to the Commission with a covering letter. The aim was to determine whether the Receiver Manager was performing the role for which he was appointed, but we discovered he was not.”
The defendant 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 are being prosecuted by EFCC on six count charge bordering on conspiracy, stealing and abuse of office.
Count one of the charge 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.“
Earlier in the proceedings, the court also admitted in evidence the petition and 39 annexures attached.
At the resumed hearing, the prosecution counsel, Dr. Shittu (SAN) called the fourth witness narrated how investigation was conducted and documents recovered.
He explains to the the court that during the investigation, the first defendant, Omokide, petitioned the Attorney-General, Prince Lateef Fagbemi alleging harassment and seeking a halt to the probe.
According to him, the petition, which contained 39 attachments, was accompanied by a legal opinion written by the Attorney-General and signed by the Solicitor-General.
“My head of the investigative team received copies of the petition. It was essentially requesting that the investigation be stopped.”
Kaltungo informed the court that his team extended their investigation to the Central Bank Of Nigeria, CBN, noted that they got the Certified True Copy, CTC of the meeting and decision to appoint receiver manager to Arik a week after taken over.
The witness who is also an Assistant Director with EFCC listed the names of directors present at the meeting included Godwin Emefiele as the chairman; the Deputy Governor Corporate Service, Sulaiman A.Barau; Deputy Governor Economic Policy, Sarah O. Alade; Deputy Governor Financial System Stability, Okwu J. Nnanna.
Deputy Governor Operation, Adebayo A. Adelabu; Director of Corporate Secretarial, Yunusa Sanusi; AMCON MD, Ahmed Kuru (second defendant); Director of Banking Supervision, Ahmed Abdullahi and Senior Manager Banking Supervision, Adebayo Aderonke were also mentioned.
“He said the resolution of the memo Kuru have is to take over Arik Airline.
“The chairman disclosed that the state of Arik Airline Limited had deteriorated and that the urgent steps needed to be taken to the tide. He stated that the airline which carry 60% of passenger traffic in the country could go down within two weeks if not rescue.
He added that the airline had paid out cash collaterals to its technical partners Lufthansa and allowed them to leave the country thereby indicating that the owner has given up the airline.
“He further stated that he had discussion with three major banks who were creditors to airline and that the consensus was that the CBN should intervene.”
As Shittu sought to tender the CTC of Insurance Certificate, the defendants counsel objected to it admissibility.
Defence team, Professor Taiwo Osipitan (SAN), Mrs. Oyinkan Badejo (SAN), Mr. Olalekan Ojo (SAN) and Mr. Tayo Oyetibo (SAN) first to fifth defendants counsel respectively vehemently opposed the tendering of the document.
The counsel argued that there was no mention of diversion or conversion of Arik money for purpose of payment premium insurance in the charge.
They submitted that the document is not connected with the counts of the charge. “There is no way this document can go in.”
Shittu in his response said the defendant was charged for abuse of office, and stealing, hence he urged the court to admit it saying that the prosecution intends to amend the charge, notinh that the document is certified.
The trial judge in a bench ruling held that the insurance certificate was not included in the six counts charge before the court and she therefore rejected it.
Subsequently, Justice Dada adjourned further hearing in the matter to February 26, 2026.
