Abuja court adjourns N76bn, $31.5m fraud trial of ex-AMCON MD, Ahmed Kuru

Justice Mojisola Dada, a judge of the special offences court in Ikeja, Lagos has adjourned the ongoing trial of Mallam Ahmed Kuru, former Managing Director  (MD) of the Asset Management Corporation of Nigeria (AMCON), and four others.

Kuru alongside Captain Roy Ilegbodu; the MD of Arik Air, Kamilu Omokide, Receiver Manager of Arik Air; Union Bank Nigeria Plc; and Super Bravo Limited (Ltd) were arraigned on Monday, June 30 on six counts of conspiracy, stealing, and abuse of office involving N75 billion and $31.5 million.

During the hearing, the third prosecution witness identified on Muhammed Abbas Jega, a former executive director of credits at AMCON testified that Arik Air’s debt to AMCON was classified as a non-performing loan by relevant regulatory agencies in Nigeria.

Previously, under cross-examination, Jega had claimed that the Arik loan acquired by AMCON during the first phase of the Eligible Bank Asset (EBA) purchase was performing.

However, during further cross-examination on Monday, June 30 he withdrew that statement and admitted that AMCON, under his leadership, had acquired Arik’s debt worth N85 billion from Union Bank and the defunct Bank PHB.

He further revealed that AMCON also provided an additional N11 billion loan to Arik as working capital.

Despite this funding and intervention loans from the Bank of Industry (BOI), which AMCON guaranteed, Arik Air still failed to meet its debt obligations to AMCON up until Jega’s departure from the corporation.

Jega said, “Though I served as Executive Director, Credits, AMCON, and carried out all my actions with Board’s approval, I never sighted the Loan Purchase Agreement, which chronicled the number and credit details regarding the embattled Arik loan, especially from Union Bank.

“As at the time I left AMCON in 2015, the Arik loan was non-performing.”

He further stated that Union bank had misled AMCON, although he could not explain why he didn’t report the issue to AMCON’s Board or the Central Bank of Nigeria (CBN). 

Jega also acknowledged that beyond the guarantees, Arik Air and its promoter had other outstanding loans with AMCON. Additionally, under further questioning, Jega admitted that apart from Union Bank, none of the other defendants in the case was involved in the loan acquisition or restructuring.

The judge then adjourned the case to Tuesday, July 1 for the continuation of the trial.