The Economic and Financial Crimes Commission (EFCC) arraigned five defendants on a six-count charge involving conspiracy and theft, specifically the dishonest appropriation of another’s property.
At the Lagos State Special Offences Court in Ikeja, a former group executive director of Union Bank PLC, Austen Obigwe, testified about how he wrote off a $2.3 million debt owed by Arik Air to his private firm, Staal Corp.
Obigwe, the second prosecution witness, was testifying before Justice Mojisola Dada in the ongoing trial of the former managing director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and four others accused of defrauding Arik Air of ₦76 billion and $31.5 million.
Alongside Kuru, the other defendants are Kamilu Omokide, Arik Air’s former receiver manager; Captain Roy Ilegbodu, Arik’s CEO; Union Bank of Nigeria PLC; and Super Bravo Limited. All have pleaded not guilty, and the court granted them bail of ₦20 million each with one surety in the same amount.
At the last hearing on March 19, Obigwe began his testimony under the lead of prosecuting counsel, Wahab Shittu, SAN, and answered questions under cross-examination from Prof. Taiwo Osipitan, SAN, representing the first and third defendants.
Continuing his evidence on Wednesday, Obigwe faced further cross-examination by Senior Advocates of Nigeria—Olasupo Shasore (for the second defendant), Olalekan Ojo (for the fourth), and Tayo Oyedepo (for the fifth).
Obigwe told the court that in 2011, two years after leaving Union Bank, Arik Air owed his company $2.3 million. He said the debt was never repaid, but he decided to write it off due to the airline’s financial struggles at the time. “I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he said.
He also confirmed that after leaving Union Bank, he consulted for Arik Air and other companies. When asked if he had a personal relationship with Arik Air’s founder, Johnson Arumemi-Ikhide, he said yes, adding that while he no longer has formal ties to the airline, he remains acquainted with Arumemi-Ikhide.
Obigwe recalled participating in a 2009 inspection of 26 aircraft allegedly owned by Arik Air, confirming the planes were in good condition based on evaluations by Lufthansa. “I had no reason to doubt Lufthansa’s evaluation,” he said, noting the inspection aimed to confirm the integrity of the airline’s fleet.
Regarding Arik’s loan compliance, he testified that during his tenure at Union Bank, no other financial institution raised concerns about the airline’s repayment behaviour. He stated that, to his knowledge, Arik was servicing its loan with Union Bank at the time.
When shown a letter dated April 23, 2009, allegedly from AMCON to Union Bank about a ₦46.11 billion debt owed by Arik Air, Obigwe said the letter was not brought to his attention while he worked at the bank.
On Arik’s management during his time at Union Bank, he said, “I can only speak for the period I was there. When I was in Union Bank, Arik Air was one of the best companies.”
Asked about a lender’s options when a borrower defaults, Obigwe explained that the lender could transfer the loan, reassign it, or enforce the attached security. He affirmed that lenders are legally allowed to dispose of security in the event of a default.
The trial continues on June 4.
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