EFCC tells court how AMCON receivers turned Arik Air into ‘cash cow’

Kuru

The Economic and Financial Crimes Commission, EFCC, on Friday told the Lagos State Special Offences Court, Ikeja, that Arik Air Ltd was converted into a “cash cow” by Asset Management Corporation of Nigeria, AMCON, appointed Receiver/Managers, leading to massive losses put at more than N350 billion.Testifying before Justice Morenike Dada in the ongoing trial of former AMCON Managing Director, Ahmed Kuru, and four others, the Acting Director of the EFCC Kaduna Zonal Office, Bawa Usman Kaltungo, said investigations showed that Arik Air’s financial collapse accelerated immediately after AMCON took over the airline.

Kuru is standing trial alongside former Receiver Manager of Arik Air, Kamilu Omokide; the airline’s CEO, Captain Roy Ilegbodu; Union Bank Plc; and Super Bravo Ltd.

They are accused of defrauding the airline of N76 billion and $31.5 million.

Kaltungo told the court that loans which were previously performing were transferred to AMCON “without justification”, worsening Arik Air’s financial crisis.

He added that Union Bank had no evidence of disbursing N71 billion to the airline, describing the figure sold to AMCON as fictitious.

According to him, Union Bank merely guaranteed foreign loans obtained by Arik Air, many of which were performing until they were converted into local obligations without consultation with the airline.

He said the receivership marked the beginning of Arik’s rapid decline, describing the process as “a failure that facilitated mismanagement and financial loss”.

The EFCC witness stated that 25 aircraft engines belonging to Arik Air were abandoned abroad, while investigators uncovered contracts awarded to companies that provided no services. Vanguard