Ex-Banker Testifies in Alleged Arik Air N76bn Fraud Case

Wale Igbintade

A former Union Bank staff, Mr. Peter Omokaro, testified yesterday before the Ikeja Special Offences Court in the ongoing trial of a former Asset Management Corporation of Nigeria (AMCON) Managing Director, Ahmed Kuru, over an alleged N76 billion fraud.

Kuru and four others were accused of defrauding Arik Air of N76 billion and $31.5 million.

The other defendants included the former Receiver Manager of Arik Air Ltd., Kamilu Omokide; the airline’s Chief Executive Officer, Capt. Roy Ilegbodu; Union Bank Ltd, and Super Bravo Ltd.

Omokaro, the first prosecution witness, was led in evidence by Economic and Financial Crimes Commission (EFCC) counsel, Dr. Wahab Shittu.

A retired Assistant General Manager at Union Bank, Omokaro stated that he worked at the bank from 1980 until his retirement in 2015.

He told the court that he was invited by the EFCC to make a statement regarding the case.

According to Omokaro, 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 that in August 2009, the Central Bank of Nigeria (CBN) intervened in Union Bank’s management.

Subsequently, AMCON acquired the bank’s non-performing loans.

However, he 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 said 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.

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.

The court has adjourned further hearings until March 19, 2025.