Ahmed Kuru, former AMCON MD
First Prosecution witness in the ongoing trial of Mr. Ahmed Kuru, the immediate past Managing Director of Asset Management Corporation of Nigeria (AMCON) and four others, on Monday testified before a Special Offences Court, Ikeja, Lagos, on the alleged N76 billion, $31.5 million USD fraud involving Kuru and three others.
The witness, who testified against Kuru and others is, Peter Omokaro, a former Union Bank staff,
Others being tried before the court alongside Kuru are: Kamilu Omokide; the former Receiver Manager of Arik Air Limited, Captain Roy Ilegbodu; the airline’s Chief Executive Officer, Union Bank Limited, and Super Bravo Limited.
At the resumed trial of the defendants, the former Union Bank staff Omokaro, was led in evidence by Economic and Financial Crimes Commission (EFCC) prosecutor, Dr. Wahab Shittu.
In his evidence before the court, Omakoro told the court that he from Union Bank as an Assistant General Manager and that he worked with bank from 1980 until his retirement in 2015.
He also told the court that he was invited by the EFCC to make a statement regarding the case.
According to Omokaro in his evidence, “Arik Air had approached Union Bank for financial support to purchase aircraft.
“However, instead of disbursing cash, the bank provided guarantees for loans that Arik Air secured from foreign financial institutions, HSBC Bank and the US EXIM Bank, to facilitate the purchase of aircraft from Airbus and Boeing.
“Union Bank only guaranteed the facilities secured by Arik Air. The bank, in turn, collected indemnity from the airline, and the aircraft were delivered,” he testified.
Omokaro explained further that in August 2009, the Central Bank of Nigeria (CBN) intervened in Union Bank’s management, and subsequently, AMCON acquired the bank’s non-performing loans.
He however, claimed that Union Bank mistakenly included the guarantees in the assets sold to AMCON.
“By early 2011, realising the error, a meeting was held in London involving AMCON, Union Bank, HSBC Bank, and US EXIM Bank, but without Arik Air’s participation”, he stated.
He also told the court that Union Bank attempted to correct the mistake by stepping in as the obligor to take over Arik Air’s responsibility.
“However, the primary lenders never called in the guarantee, nor did Union Bank demand indemnity from Arik Air,” Omokaro stated.
He insisted that Union Bank never granted a direct loan to Arik Air and that the airline had not defaulted on its payments.
He stated that instead, he alleged that the bank converted the guarantee into cash to obtain funds from AMCON.
“Union Bank never disbursed cash for the aircraft acquisition. Arik Air remained up to date with its payments,” he told the court.
The prosecution submitted five documents related to the transaction, which the court admitted as evidence.
During cross-examination, Omokaro acknowledged that Ahmed Kuru and Capt. Roy Ilegbodu were not involved in the transaction when it took place in 2010.
“I was not present at the London meeting myself,” he admitted.
Kuru’s lawyer, Mr. Olasupo Shasore (SAN), emphasised that his client was not the Managing Director of AMCON at the time of the deal.
Meanwhile, Union Bank’s counsel, Mr. Olalekan Ojo (SAN), questioned Omokaro about a lawsuit he had previously filed against the bank over his alleged wrongful termination.
Meanwhile, Further hearing of the matter has been adjourned to March 19, 2025.
