A major twist has rocked the ongoing N76 billion fraud trial of former Asset Management Corporation of Nigeria (AMCON) Managing Director Ahmed Lawal Kuru, after a senior Economic and Financial Crimes Commission (EFCC) investigator told a Lagos court that the basis for placing Arik Air under receivership was “fraudulent and faulty.”
Bawa Usman Kaltungo, EFCC Director of Lagos Zonal Directorate 2 and the fourth prosecution witness, testified before Justice Mojisola Dada of the Special Offences Court in Ikeja. He told the court that his investigation found Arik Air was not indebted to Union Bank of Nigeria Plc — contrary to the circumstances presented to justify the airline’s receivership.
“The foundation for the appointment of a receivership over Arik Air was fraudulent and faulty. There was no bad debt; it does not exist,” Kaltungo stated.
Kaltungo said he led the EFCC team that investigated a petition over the airline and later informed AMCON’s top management that Arik Air owed nothing to Union Bank and that the appointment of a receiver-manager was defective.
The defence immediately challenged the testimony. During cross-examination, Kuru’s counsel, Uyi Giwa-Osagie, tendered AMCON board resolutions to counter claims that Kuru acted unilaterally in approving the receivership.
The prosecution objected, arguing the documents were irrelevant. Justice Dada overruled the objection and admitted them, noting they were duly certified board resolutions of AMCON as a corporate body under Section 104 of the Evidence Act.
Giwa-Osagie maintained the documents are critical to determining his client’s culpability, stressing that Kuru is not on trial merely for exercising AMCON’s power to appoint a receiver-manager but for specific offences in the charge.
The trial centres on allegations surrounding Arik Air’s loan obligations, the transfer of an alleged N71 billion exposure to AMCON, and the alleged fraudulent conversion of N4.9 billion belonging to Arik Air for the use of NG Eagle Limited. One count claims Union Bank made false statements to AMCON about performing loans, enabling the debt transfer. Another alleges conspiracy and conversion involving Kuru, former receiver-manager Kamilu Alaba Omokide, and Captain Roy Ilegbodu, Arik Air’s CEO under receivership.
All defendants — including Union Bank of Nigeria Plc and Super Bravo Limited — have pleaded not guilty to the six counts of conspiracy, stealing and abuse of office. They were arraigned on 20 January 2025.
At the heart of the dispute is whether the receivership was Kuru’s unilateral decision or an institutional board action. While the EFCC witness insisted Kuru, as managing director and chief executive, sanctioned the appointment, the defence now relies on the admitted board resolutions to challenge that narrative.
The case originated from a petition by human rights lawyer Femi Falana, SAN, on behalf of Arik Air’s promoters and shareholders. It also raises broader questions about AMCON’s exercise of statutory powers and a receiver-manager’s duty under Section 553(2) of the Companies and Allied Matters Act 2020 to act in the company’s best interests.
The court’s admission of the board documents does not decide the legality of the receivership or any defendant’s guilt or innocence. Those questions remain for the court as the high-stakes trial continues.
