Arik Air Fraud Trial: Ex-AMCON Boss Kuru Acted Without Board Approval, Witness Tells Court

​LAGOS — The high-profile trial of former Asset Management Corporation of Nigeria (AMCON) Managing Director Ahmed Kuru and four others over an alleged N76 billion and $31.5 million fraud took a dramatic turn on Monday as the Economic and Financial Crimes Commission (EFCC) revealed that the former CEO unilaterally initiated the receivership of Arik Air without mandatory board clearance.

​Testifying before Justice Mojisola Dada of the Special Offences Court in Ikeja, Lagos, the Fourth Prosecution Witness (PW4), Bawa Usman Kaltungo, maintained during cross-examination that Kuru bypassed proper institutional protocols when placing Nigeria’s legacy carrier under receivership.

​Kuru is standing trial alongside Kamilu Alaba Omokide, Roy Ilegbodu, Union Bank of Nigeria Plc, and Super Bravo Limited on a six-count charge bordering on conspiracy, stealing, and abuse of office brought against them by the anti-graft agency.

​Unilateral Action and Missing Documentation

​Kaltungo, currently the acting Zonal Director of the Lagos Zonal Directorate 2 of the EFCC and former head of the AMCON desk, told the court that investigations into the matter were triggered by a petition written by Femi Falana, SAN, counsel to Arik Air’s directors and shareholders. The petition was received by the EFCC Chairman on May 3, 2023, leading to a formal directive for a comprehensive probe on May 22, 2023.

​Under cross-examination by Uyi Giwa-Osagie, counsel to the first defendant, Kaltungo asserted that Kuru wielded extensive powers that culminated in the appointment of a receiver-manager for the airline before any formal approval was secured from the AMCON Board.

​According to the witness, investigators specifically demanded documents linking the appointment of the receiver-manager to a prior board decision, but no such records were produced throughout the inquiry. He noted that subsequent board approvals only emerged years after the fact—a timeline prosecution counsel Wahab Shittu, SAN, argued was far too remote to validate the initial unilateral action.

​Disputed Debt and Corporate Assets

​The prosecution maintains that AMCON was misled into taking over what was presented as bad debt. Kaltungo stated that investigations debunked claims underlying the receivership, revealing that the federal government never actually disbursed funds to acquire Arik Air or its purported indebtedness.

​The witness further alleged that the corporation was defrauded by Union Bank of Nigeria Plc regarding the transfer of a disputed N71 billion loan portfolio and associated bank guarantees.

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​During the proceedings, legal arguments ensued over the admissibility of various documents, including board resolutions dated between 2019 and subsequent years. While the defense maintained that the documents justified the legitimacy of the actions taken, the prosecution countered that resolutions passed two to five years after the receivership decision could not legally constitute prior approval.

​Justice Mojisola Dada ultimately admitted the disputed AMCON board resolution documents into evidence and adjourned the matter for the continuation of the trial.