Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos, on Monday adjourned further hearing in the trial of Mallam Ahmed Kuru, former Managing Director of the Asset Management Corporation of Nigeria (AMCON), and four others over an alleged ₦76 billion and $31.5 million fraud till July 1, 2025.
Kuru is standing trial alongside Capt. Roy Ilegbodu, Managing Director of Arik Air; Kamilu Omokide, Receiver Manager of Arik Air; UNION BANK NIGERIA PLC; and SUPER BRAVO LIMITED on a six-count charge bordering on conspiracy, stealing, and abuse of office involving ₦76 billion and $31.5 million.
At Monday’s sitting, the third prosecution witness, PW3, Muhammed Abbas Jega, a former Executive Director of Credits at AMCON, told the court that Arik’s debt to AMCON was classified as a non-performing loan, as defined by regulatory agencies.
Jega, who had previously testified under cross-examination that the Arik loan acquired under AMCON’s first phase of Eligible Bank Asset (EBA) purchase was performing, recanted his earlier statement.
During further cross-examination, he informed the court that AMCON, under his leadership as Executive Director, purchased a total of ₦85 billion in Arik debt from UNION BANK and Bank PHB.
He added that AMCON also extended an additional ₦11 billion loan to Arik as working capital.
According to him, despite the funds injected by AMCON, along with the Bank of Industry (BOI) intervention funds guaranteed by AMCON, Arik failed to meet its obligations to AMCON until he exited the agency.
“Though I served as Executive Director, Credits, AMCON, and carried out all my actions with the Board’s approval, I never sighted the Loan Purchase Agreement, which chronicled the number and credit details regarding the embattled Arik loan, especially from Union Bank. As at the time I left AMCON in 2015, the Arik loan was non-performing,” Jega stated.
Jega further claimed that “Union Bank deceived AMCON,” adding that it was after the “so-called London meeting between the obligor and the Executive Management of AMCON that it became clear that there were issues with the purchase.”
However, he could not provide a clear explanation for his failure to escalate the matter to AMCON’s Board and the Central Bank of Nigeria.
Jega also admitted that aside from the guarantees, both ARIK AIR LIMITED and its promoter had other outstanding loans with AMCON.
Under further cross-examination, he conceded that apart from UNION BANK, none of the other defendants in the criminal trial participated in the acquisition or restructuring of the Arik loan.
The matter was adjourned till July 1, 2025, for continuation of trial.