NIGERIA: Ex-Union Bank Director Says Arik Air Was ‘One Of the Best’ Amid N76bn Fraud Trial

By Onoja Baba, Nigeria

A key witness in the ongoing trial of former Managing Director of the Asset Management Corporation of Nigeria, AMCON, Ahmed Kuru, on Wednesday described Arik Air as “one of the best companies” during his time in Union Bank.

His testimony came during the trial of Kuru, who is being prosecuted by the Economic and Financial Crimes Commission (EFCC) alongside four others for allegedly mismanaging Arik Air’s assets after the airline was taken over by AMCON due to mounting debts.

Austine Obigwe, a former Group Executive Director at Union Bank, made the statement while testifying before Justice Mojisola Dada at the Special Offences Court in Ikeja, Lagos on Thursday.

The court is hearing a six-count charge of conspiracy, stealing, and abuse of office involving Kuru and four others, including Arik Air’s Managing Director, Capt. Roy Ilegbodu, and Receiver Manager Kamilu Omokide.

The fraud is estimated at N76 billion and 31.5 million dollars.

Under cross-examination, Obigwe defended the airline’s past performance, noting that during his tenure at Union Bank, there were no signs of loan defaults or financial irregularities from Arik Air.

He said the airline was meeting its obligations and that no other financial institutions had raised concerns at the time.

Obigwe also confirmed that he had inspected 26 Arik aircraft in 2009 and found them to be in good condition, based on assessments by Lufthansa.

“I had no reason to doubt Lufthansa’s evaluation,” he told the court.

Although he acknowledged a personal relationship with Arik founder Johnson Arumemi-Ikhide, Obigwe stated he has no formal business ties with the airline today.

He also revealed that Arik owed his company 2.3 million dollars in 2011 but added that he had written off the debt after the airline ran into trouble.

“I am not interested in collecting it,” he said.

When asked about a 2009 letter from the Asset Management Corporation of Nigeria, AMCON, referencing a 46.11 billion naira debt by Arik Air, Obigwe said it was not brought to his attention while he was still at Union Bank.

He added that in the event of loan defaults, lenders have legal options, including enforcing securities or transferring loans.

Justice Dada adjourned the matter to June 4 for further hearing.