A former employee of Union Bank Nigeria Plc, Peter Omokaro, on Monday testified against the ex-Managing Director of the Asset Management Corporation of Nigeria, Ahmed Kuru, for allegedly defrauding Arik Air.
Kuru and four others are alleged of N76 billion and $31.5 million fraud, respectively.
The other defendants are former Receiver Manager of Arik Air Ltd., Kamilu Omokide, Chief Executive Officer of the airline, Capt. Roy Ilegbodu, Union Bank and Super Bravo Ltd.
They are standing trial on a five-count charge bordering on theft, abuse of office and dishonestly taking the property of another.
Union Bank was charged with a count of making false statements to a public officer.
The defendants, however, pleaded not guilty to the charge.
Omokaro, the first prosecution witness, was led in evidence by the Economic and Financial Crimes Commission Counsel, Dr Wahab Shittu.
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Omokaro told the court that he had worked with Union Bank from 1980 to 2015 and he was the assistant general manager at the time he exited the bank.
He told the court that he was invited by the EFCC to make a statement in relation to the fraud case.
The witness said Arik Air approached the bank for a purchase of aircraft.
According to him, Union Bank only guaranteed facilities secured by the airline from two foreign banks, HSBC Bank and US EXIM Bank, to facilitate the acquisition of aircraft from Airbus and Boeing.
He said: “Union Bank in turn collected indemnity from Arik Air and the aircrafts were delivered.
“At no point did we disburse cash for the acquisition of the aircraft. In August 2009, the Central Bank of Nigeria sent a team to take over the bank. There was AMCON guideline that talked on eligible assets to buy non-performing loans and commercial papers.
“Thereafter, the executive management of Union Bank went ahead to sell the guarantee to AMCON.
“This happened before the end of December 2010 and in early 2011, when Union Bank discovered the error and tried to see how to legalise the wrong, a meeting took place in London between AMCON, Union Bank, HSBC Bank and US EXIM Bank with the exclusion of the main obligor, which was Arik Air.”
Omokaro told the court that it was from the minutes of the meeting recorded that Union Bank wanted to step in as obligor to take over the responsibility of Arik Air.
He added that the foreign credit agencies did not call in the guarantee neither did Union Bank return call in indemnity.
The witness reiterated that he was surprised on the emphasis that Union Bank granted a loan.
Omokaro said: “Union Bank never gave loan to Arik Air.
“Union Bank converted the guarantee to cash and used it to collect money from AMCON.
“The primary lender did not call in the guarantee neither did the bank call in the guarantee for Arik Air.
“Union Bank did not disburse cash for the acquisition of the aircrafts.
“In respect of this transaction, there was no default on the part of Arik because payment were up to date.”
The prosecution sought to tender five documents which were related to the transaction and the court admitted it into evidence.
The witness, under cross-examination by the counsel to the first and third defendants, Prof. Taiwo Osipitan (SAN), confirmed to the court that first and third defendants were not part of the transaction.
“The first and third defendants were not part of the transaction.
“I was not at the London meeting,” he said.
The witness, while responding to the questions from Olasupo Shasore (SAN), Counsel to Kuru, said the transaction took place in 2010 and that the third defendant was not the Managing Director of AMCON at the time.
Counsel to Union Bank, Olalekan Ojo (SAN), asked the witness to confirm to court that he once sued Union Bank because his appointment was untimely terminated.
EFCC alleged that the defendants abused their office and stole property belonging to Arik Air.
The anti graft agency alleged that sometime in 2011, Union Bank, with the intention of causing and/or inducing unwarranted sale of Arik Air loans and bank guarantees, made false statements to AMCON.
EFCC said the false statement was made regarding Arik Air’s performing loans and later transferred the sum of N71 billion to AMCON.
The commission also alleged that Kuru, Omokide and Ilegbodu, sometime in 2022, fraudulently converted to the use of NG Eagle Ltd., the total sum of N4.9 billion.
The anti-graft agency also alleged that the CEO of Arik stole the sum of N22.5 million by fraudulently converting same to the use of Magashi Ali Mohammed.
EFCC said the money belonged to Arik Air Ltd.
The EFCC also alleged that the defendants obtained undue advantage for themselves and intentionally authorised the tear down and destruction of 5N-JEA with Serial No. 15058 valued at $31.5 million, an arbitrary act.
EFCC said the act was prejudicial to the economic stability of the Federal Republic of Nigeria and Arik Air Ltd.
According to the prosecution, the alleged offences contravene Sections 73, 96, 278(1) and 278(6) of the Criminal Law of Lagos State, 2015.
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