Alleged N76bn fraud: Ex-banker testifies against former AMCON MD, others

A former employee of Union Bank Nigeria Plc, Mr Peter Omokaro, on Monday testified against the ex-Managing Director of the Asset Management Corporation of Nigeria (AMCON), Mr Ahmed Kuru, for allegedly defrauding Arik Air.

Kuru and four others are alleged of N76 billion and $31.5 million fraud, respectively.

The other defendants are former Receiver Manager of Arik Air Ltd., Kamilu Omokide, Chief Executive Officer of the airline, Capt. Roy Ilegbodu, Union Bank and Super Bravo Ltd.

They are standing trial on a five-count charge bordering on theft, abuse of office and dishonestly taking the property of another.

Union Bank was charged with a count of making false statements to a public officer.

The defendants, however, pleaded not guilty to the charge.

Omokaro, the first prosecution witness, was led in evidence by the Economic and Financial Crimes Commission (EFCC) Counsel, Dr Wahab Shittu.

Omokaro told the court that he had worked with Union Bank from 1980 to 2015 and he was the assistant general manager at the time he exited the bank.

He told the court that he was invited by the EFCC to make a statement in relation to the fraud case.

The witness said Arik Air approached the bank for a purchase of aircraft.

According to him, Union Bank only guaranteed facilities secured by the airline from two foreign banks, HSBC Bank and US EXIM Bank, to facilitate the acquisition of aircraft from Airbus and Boeing.

He said: “Union Bank in turn collected indemnity from Arik Air and the aircrafts were delivered.

“At no point did we disburse cash for the acquisition of the aircraft. In August 2009, the Central Bank of Nigeria sent a team to take over the bank. There was AMCON guideline that talked on eligible assets to buy non-performing loans and commercial papers.

“Thereafter, the executive management of Union Bank went ahead to sell the guarantee to AMCON.

“This happened before the end of December 2010 and in early 2011, when Union Bank discovered the error and tried to see how to legalise the wrong, a meeting took place in London between AMCON, Union Bank, HSBC Bank and US EXIM Bank with the exclusion of the main obligor, which was Arik Air.”

Omokaro told the court that it was from the minutes of the meeting recorded that Union Bank wanted to step in as obligor to take over the responsibility of Arik Air.

He added that the foreign credit agencies did not call in the guarantee neither did Union Bank return call in indemnity.

The witness reiterated that he was surprised on the emphasis that Union Bank granted a loan.

Omokaro said: “Union Bank never gave loan to Arik Air

The Lagos State Special Offences Court in Ikeja on Monday adjourned the fraud trial of the former Managing Director of the Asset Management Corporation of Nigeria, Ahmed Kuru, and four other defendants to March 19, 2025.