Economic and Financial Crimes Commission Witness Alleges Ex-Asset Management Corporation of Nigeria MD Diverted Arik Air Funds
An Assistant Director of the Economic and Financial Crimes Commission (EFCC) has told an Ikeja Special Offences Court that a former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Lawan Kuru, diverted funds belonging to Arik Air to settle insurance liabilities owed by Umza Aviation Services Limited.
The witness, Bawal Usman Kaltungo, made the disclosure on Wednesday while testifying before Justice Mojisola Dada. The prosecution, led by Dr Wahab Shittu (SAN), is pursuing charges of alleged fraud involving N76 billion and $31.5 million.
Alleged Diversion of Funds
Kaltungo told the court that investigations revealed Arik Air’s funds were used to pay insurance obligations for Umza Airline while Kuru served as Receiver-Manager of the airline.
“In the course of our investigation, we discovered that Arik Air’s money was used to pay for the insurance of Umza Airline,” the witness said.
According to him, Umza Airline confirmed the transaction when invited by investigators. He added that although Umza Aviation Services had commenced repayment, the process had not been concluded at the time of investigation.
Multiple Defendants Arraigned
Kuru is standing trial alongside Kamilu Alaba Omokide, also a Receiver-Manager of Arik Air; Captain Roy Ilegbodu, Managing Director of Arik Air; Union Bank Plc; and Super Bravo Limited.
The defendants face charges bordering on conspiracy, stealing, abuse of office and making false statements in connection with the alleged fraudulent conversion of Arik Air’s assets.
Loan Accounts and Oversight Questions
The EFCC witness further disclosed that AMCON opened several accounts for Arik Air and assigned an account officer to manage the airline’s loan portfolio.
“We invited the account officer, who provided a statement of the loan account, signed by him and one Justin Akune. The statement was submitted to the Commission with a covering letter,” Kaltungo testified.
He said the investigation sought to determine whether the Receiver-Manager discharged his duties appropriately but alleged that findings suggested otherwise.
Petition to Halt Probe
Kaltungo also informed the court that one of the defendants, Omokide, petitioned the Attorney-General of the Federation, alleging harassment and requesting a halt to the investigation.
The petition, he said, was accompanied by 39 attachments and a legal opinion issued through the Solicitor-General, effectively seeking to stop the EFCC probe.
CBN’s Role in Arik Takeover
The EFCC extended its investigation to the Central Bank of Nigeria (CBN), where it obtained a Certified True Copy of the minutes of the 494th meeting of the CBN Committee of Governors.
According to the witness, approval for the appointment of a Receiver-Manager for Arik Air was granted at the meeting, with the takeover occurring about a week later.
He told the court that the resolution seeking Arik Air’s takeover was presented by Kuru, and that the then CBN Governor warned the airline could collapse within two weeks without urgent intervention.
The witness added that Arik Air, which reportedly accounted for about 60 per cent of passenger traffic in Nigeria at the time, had paid out cash collaterals to technical partners, including Lufthansa, allowing them to exit the country — a move investigators said indicated the owner had effectively abandoned operations.
Court Rejects Insurance Certificate
During proceedings, the prosecution sought to tender a Certified True Copy of an insurance certificate allegedly linked to the Umza transaction.
Defence counsel objected, arguing that the document was not listed among materials supporting the six-count charge and did not directly reference the alleged diversion of Arik Air funds.
In a bench ruling, Justice Dada upheld the objection and rejected the document, stating that it was not part of the charge before the court.
The trial continues.
