The Economic and Financial Crimes Commission, EFCC, has presented its second prosecution witness, (PW2), Austine Obegwe, a retired Group Executive Director, Corporate and International Banking Division, Union Bank Plc, in the trial of a former Managing Director of Assets Management Corporation of Nigeria (AMCON), Ahmed Kuru and four others.
Other defendants are a former Receiver Manager of Arik Airline Ltd., Kamilu Omokide; Chief Executive Officer of the airline, Capt. Roy Ilegbodu; Super Bravo Ltd. and Union Bank Plc.
They are accused of defrauding Arik Airline N76 billion and $31.5 million, respectively, and have pleaded not guilty to the six-count charge brought before Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos.
Other allegations against them include, abuse of office and stealing by dishonestly taking the property of another.
During Wednesday’s hearing, Mr Obegwe told the court that he worked with the bank from 1980 to August 2009 before he retired.
Led in evidence by the prosecution counsel, Wahaab Shittu, SAN , the PW2 also told the court that he handled the transaction with Arik Air and US EXIM to purchase three aircraft, for which Union Bank provided guarantee.
According to him, “I was a Board member. I handled the transaction with Arik Air for which Union Bank provided guarantee. We had a second transaction for two wide-body aircraft for body-long hub A340500 and chemist OF HSBC Germany Coface of UK. The three of them are also shareholders.
“The two Boeing were financed by the credit agreed, and there was no payment by Union Bank.
“In the two wide-body aircraft, the hub was the major success. One was to fly to London and the other was to fly direct to New York.
“ The major focus of this airline finance is that Union Bank was able to provide a guarantee pending a loan up to 85% until I left the bank in August 2009.
“All facilities extended to Arik were performing, meaning that there was no default because of the way Arik was structured. But Arik had two repayments every time.
“ I am also aware that there was no default of money for the First Bank to apply to the CBN and make the payment to HSBC in Dollars, the bank that is representing all the foreign lenders.”
But, Justice Dada rejected the document relating to the transaction, sought to be tendered by
The prosecution counsel, through the witness. In their objections, Prof. Taiwo Osipitan (SAN), queried the genuineness of the document and asked him to establish where the document was sourced from.
He added that what the law expected to be certified were original copies of documents.
Olalekan Ojo, (SAN), who represents the 4th defendant, also argued that the document were not signed and undated.
The defence lawyers objected to their admissibility on the grounds that the witness was not the author and that there was no evidence of satisfactory payment.
They, therefore, urged the court to reject the documents.
Mr Shittu (SAN), in his response, submitted that the document was relevant to the case at hand irrespective of its status.
“Even, if the document was stolen, in as much as it is relevant to the case, my lord, it is admissible in the law court.”
But the Judge ruled that “the witness in the box is not a member of the investigation team. He is not a member of AMCON. Therefore, the documents cannot be tendered.”
The witness was, thereafter, cross-examined by Taiwo Osipitan, SAN, counsel to the first and third defendants, as well as Olasupo Shasore, SAN, counsel to the second defendant, Kuru.
Further hearing is fixed for May 19 and 28, 2025.
Among the charges again the defendants, Count one reads: “That you, Union Bank Nigeria Plc, sometime in 2011 or thereabouts, in Lagos, within the jurisdiction of this Honourable Court, with the intention of causing and/or inducing unwarranted sale of Arik Air loans and bank guarantees with Union Bank, made false statements to the Assets Management Corporation of Nigeria (AMCON), regarding Arik Air Limited’s performing loans, following which you transferred a bogus figure of N71, 000,000,000.00 (Seventy-One Billion Naira) to AMCON.”
Count two reads: “That you, Ahmed Lawal Kuru, Kamilu Alaba Omokide as Receiver Manager of Arik Air Limited, and Captain Roy Ilegbodu, Chief Executive Officer of Arik Air Limited in Receivership, sometime in 2022 or thereabout, in Lagos, within the jurisdiction of this honourable court, fraudulently converted to the use of NG Eagle Limited the total sum of N4,900,000,000.00 (Four Billion Nine Hundred Million Naira only), property of Arik Air Limited”.
