Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos, on Wednesday heard testimony alleging 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 obligations owed by Umza Airline while acting as Receiver Manager of the airline.
The allegation was made by an Assistant Director with the Economic and Financial Crimes Commission (EFCC), Bawal Usman Kaltungo, who testified as a prosecution witness.
He was led in evidence by prosecution counsel, Dr Wahab Shittu (SAN).
The ex-AMCON MD is standing trial alongside other defendants over an alleged fraud involving N76 billion and $31.5 million.
EFCC had accused the defendants of conspiracy, stealing, abuse of office and making false statements in connection with the alleged fraudulent conversion of assets belonging to the now-defunct Arik Air Limited.
Other defendants named in the charge include Kamilu Alaba Omokide, also a Receiver Manager of Arik Air; Captain Roy Ilegbodu, Managing Director of Arik Air; Union Bank of Nigeria Plc; and Super Bravo Limited.
While giving evidence, the witness told the court that investigations revealed Arik Air’s funds were allegedly used to offset insurance liabilities incurred by Umza Airlines.
“In the course of investigation, we discovered that Arik Air’s money was used to pay the insurance of Umza Airlines.
“We invited Umza Airlines, 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,” Kaltungo said.
He further disclosed that investigators discovered that AMCON opened multiple accounts for Arik Air and assigned an account officer to manage the airline’s loan facilities.
According to him, the account officer was invited and provided statements of the loan account, which were signed and submitted to the Commission with a covering letter to help determine whether the Receiver Manager was properly discharging his duties.
“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 witness added.
Kaltungo also told the court that during the investigation, the first defendant, Omokide, petitioned the Attorney-General, alleging harassment and requesting that the probe be halted.
He said the petition, accompanied by 39 attachments, included 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,” he stated.
Counsel for the defence informed the court that they would reserve their objections until the final address stage.
Kaltungo further told court that his team extended their investigation to the Central Bank Of Nigeria (CBN), noting that they got the Certified True Copy (CTC) of the meeting and the decision to appoint receiver manager to Arik a week after taking over.
The witness listed the names of directors present at the meeting to include 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.
Others are Deputy Governor Operation, Adebayo A. Adelabu;
Director of Corporate Secretariat, Yunusa Sanusi; AMCON MD, Ahmed Kuru (second defendant); Director of Banking Supervision, Ahmed Abdullahi and Senior Manager Banking Supervision, Adebayo Aderonke.
He said the resolution of the memo Kuru has is to take over Arik Airline.
“The chairman disclosed that the state of Arik Airline Limited had deteriorated and that urgent steps needed to be taken to stem the tide.
He stated that the airline which carries 60% of passenger traffic in the country could go down within two weeks if not rescued.
He added that the airline had paid out cash collaterals to its technical partners, Lufthansa Airline and allowed them to leave the country thereby indicating that the owner has given up the airline.
The witness further stated that he had discussion with three major banks who were creditors to the airline and that the consensus was that the CBN should intervene.”
However, when Shittu, SAN sought to tender the CTC of the Insurance Certificate, the defendants’ counsel objected to the admissibility.
Defence team, Prof Taiwo Osipitan (SAN), Mrs Oyinkan Badejo (SAN), Olalekan Ojo (SAN) and Mr Tayo Oyetibo (SAN) first to fifth defendants counsel respectively vehemently opposed the tendering of the document.
They argued that there was no mention of diversion or conversion of Arik money for the purpose of payment of 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,” the defence lawyers posited.
Shittu in his response said the defendants were charged for abuse of office, and stealing urged the court to admit it saying that the prosecution intends to amend the charge, insisting that the document is certified.
Justice Dada 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.
Following the proceedings, Justice Dada adjourned further hearing in the case until February 26, 2026.