An Ikeja Special Offences Court on Wednesday admitted in evidence a petition and 39 annexures in the ongoing trial of former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru.
Kuru and his co-defendants are standing trial over an alleged fraud involving N76 billion and 31.5 million dollars.
Other defendants in the charge include Kamilu Omokide, a receiver-manager of Arik Air; Roy Ilegbodu, Managing Director of Arik Air; Union Bank Plc; and Super Bravo Ltd.
The Economic and Financial Crimes Commission alleged that the defendants conspired to steal, abused their offices, and made false statements in connection with the fraudulent conversion of assets of the defunct Arik Air Ltd.
At the resumed hearing, the prosecution counsel, Dr Wahab Shittu (SAN), called the fourth witness, Mr Bawa Kaltungo, who narrated how the investigation was conducted and documents recovered.
The court admitted the bundle of documents as exhibits.
Kaltungo, an assistant director with the EFCC, told the court that the first defendant, Omokide, had petitioned the Attorney-General, Prince Lateef Fagbemi (SAN), alleging harassment and requesting that the investigation be halted.
According to him, the petition, which contained 39 attachments, was accompanied by 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 said.
Kaltungo told the court that his team extended the investigation to the Central Bank of Nigeria and obtained a Certified True Copy of the meeting and decision.
He said the document showed the decision to appoint the receiver-manager of Arik Air a week after the takeover.
The witness listed the directors present at the meeting, including Godwin Emefiele as chairman, Deputy Governor Corporate Service Sulaiman Barau, Deputy Governor Economic Policy Sarah O. Alade, and Deputy Governor Financial System Stability Okwu J. Nnanna.
Others in attendance were Deputy Governor Operations Adebayo A. Adelabu, Director of Corporate Secretarial Yunusa Sanusi, AMCON Managing Director Ahmed Kuru, Director of Banking Supervision Ahmed Abdullahi, and Senior Manager Banking Supervision Adebayo Aderonke.
He said the resolution of the memo Kuru had was to take over Arik Airline.
“The chairman disclosed that the state of Arik Airline Ltd. had deteriorated and urgent steps were needed to save it.
“He added that the airline, which carries 60 per cent of passenger traffic in the country, could collapse within two weeks if not rescued.
“He said the airline had paid out cash collaterals to its technical partner, Lufthansa, allowing them to leave the country, indicating that the owner had effectively abandoned it.
“He further stated that he had discussions with three major banks, creditors to the airline, and that the consensus was that the Central Bank of Nigeria should intervene,” the witness said.
Kaltungo told the court that in the course of investigation, his team discovered that Arik Air’s funds were used to pay Umza Airline’s insurance.
He said Umza Airline confirmed the development, and that Umza Aviation Services had commenced repayment but had not concluded it at the time of investigation.
He added that they invited the account officer, who provided the statement of the loan account signed by him and one Justin Akune.
The witness said the statement was submitted to the commission with a covering letter to assess whether the receiver manager was fulfilling his appointed role, but he was not.
However, when Shittu sought to tender the CTC of the insurance certificate, the defence counsel objected to its admissibility.
The defence team – Prof Taiwo Osipitan (SAN), Mrs Oyinkan Badejo (SAN), Mr Olalekan Ojo (SAN), and Mr Tayo Oyetibo (SAN), representing the first to fifth defendants respectively – opposed the tendering of the document.
They argued that there was no mention in the charge of diversion or conversion of Arik Air’s funds for payment to NEM Insurance Company, and therefore the certificate was unrelated to the counts in the charge.
The prosecution responded that the defendants were charged with abuse of office and stealing.
Shittu urged the court to admit the documents, arguing that the prosecution intended to amend the charge and that the document was certified.
Justice Mojisola Dada ruled that the insurance certificate was not included in the six-count charge before the court and therefore rejected it.
She subsequently adjourned the case until Feb. 26 for continuation of the trial.
