Arik paid back 38% of foreign loans before the AMCON – EFCC takeover

Economic and Financial Crimes Commission (EFCC) investigator, Bawa Kaltungo, on Tuesday told the Lagos Special Offenses Court, Ikeja, that Arik Air repaid 38 percent of its foreign loans prior to its takeover of the Asset Management Corporation (AMCON).

Kaltungo gave evidence in cross-examination by EFCC counsel, Dr. Wahab Shittu (SAN), in an alleged fraud case of N76 billion and $31.5 million.

The defendants are former Managing Director of AMCON, Ahmed Kuru, and former Manager of Arik Receivers, Kamilu Omokide.

Others are Roy Ilegbodu, Chief Executive Officer of the airline, Union Bank and Super Bravo Limited.

The commission charged the defendants with five counts of fraud, theft, abuse of office, and dishonest acquisition of property.

Union Bank was also charged separately with making false statements to public officials.

Kaltungo said, before AMCON’s intervention, Union Bank converted Arik’s N51 billion guarantee but failed to remit the funds to foreign creditors.

He said: “Arik has paid 38 percent of its loans to foreign creditors.

“When Union Bank converted the N51 billion collateral, they did not pay foreign creditors from the funds. Union Bank held N51 billion.

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“With N51 billion, Union Bank is expected to repay foreign creditors.

“Our investigation revealed that Union Bank still owes Arik 38 percent of the loan that has been paid.”

He emphasized that Union Bank did not provide any loan to Arik and described the facility as overseas credit from institutions including HSBC.

According to him, Arik paid off the loan until June 2010, before the AMCON takeover incident occurred.

Kaltungo said a letter returned to Arik’s former chairman, Mr Johnson Arumemi-Ikhide, indicated that the loan was successful.

Judge Mojisola Dada adjourned the case to May 18 to continue cross-examination.