The Trial of Ahmed Kuru and Others: Allegations of Financial Misappropriation and the Testimony of Austine Obigwe
The Lagos State Special Offences Court is currently the stage for a high-profile trial involving Mr. Ahmed Kuru, the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), and four other individuals. The charges against them include conspiracy, stealing, and abuse of office, with the alleged misappropriation totaling a staggering N76 billion and $31.5 million. The other defendants alongside Kuru are Mr. Kamilu Omokide, a former Receiver Manager of Arik Air Limited; Captain Roy Ilegbodu, Arik Air’s CEO; Union Bank of Nigeria Plc; and Super Bravo Limited. All defendants have pleaded not guilty and have been granted bail.
A key witness in this unfolding legal drama is Mr. Austine Obigwe, a former Group Executive Director of Union Bank Plc. Obigwe’s testimony has shed light on the complex financial dealings surrounding Arik Air, a major Nigerian airline that experienced significant financial difficulties. Central to his testimony is a $2.3 million debt owed to his private company, Staal, by Arik Air. Obigwe informed the court that this debt, originating in 2011, two years after his departure from Union Bank, was ultimately written off due to Arik Air’s operational struggles. He explicitly stated his lack of interest in pursuing the debt, emphasizing his understanding of the airline’s challenging financial position.
Obigwe’s professional relationship with Arik Air extended beyond the unresolved debt. He disclosed his consultancy engagements with the airline and other firms following his tenure at Union Bank. Furthermore, he acknowledged a personal relationship with Sir Johnson Arumemi-Ikhide, the founder of Arik Air, a relationship that continues despite his lack of formal ties with the airline. This personal connection adds another layer of complexity to Obigwe’s involvement in the ongoing trial.
During cross-examination by the defense counsel, Obigwe’s testimony touched upon a 2009 inspection of 26 Arik Air aircraft. He confirmed his participation in this inspection and stated that the aircraft were deemed airworthy based on evaluations conducted by Lufthansa, a reputable international airline. He expressed confidence in Lufthansa’s assessment and clarified that the inspection’s primary purpose was to verify the integrity of Arik Air’s fleet. Regarding Arik Air’s loan obligations during his time at Union Bank, Obigwe asserted that the airline was servicing its loans and that there were no complaints from other financial institutions. He also denied any knowledge of a letter allegedly sent by AMCON to Union Bank in 2009 concerning a substantial N46.11 billion debt owed by Arik Air.
Obigwe’s portrayal of Arik Air during his tenure at Union Bank was positive. He described the airline as “one of the best companies” and emphasized the absence of default on their loan obligations. He also explained the various options available to lenders when dealing with non-performing loans, including transferring the loan to another bank, reassigning it, or enforcing the collateral. He acknowledged the legal right of lenders to dispose of collateral in cases of default. This explanation provides context to the potential actions that could have been taken regarding Arik Air’s debts.
In earlier testimony, Obigwe detailed his responsibilities as Group Executive Director at Union Bank, which included overseeing corporate and international banking, serving on the board, and managing transactions with the U.S. Export-Import Bank. He highlighted Union Bank’s role as a guarantor for Arik Air in procuring five aircraft, financed through export credit agencies, without Union Bank committing its own funds for the 85% guarantee. He specifically mentioned two wide-body aircraft used for international flights, including a route between Nigeria and New York, a route that has not been resumed by any Nigerian airline since Arik Air discontinued it. This detail underscores the significance of Arik Air’s operations within the Nigerian aviation landscape.
Obigwe’s testimony provides a crucial insider perspective on the financial dealings between Union Bank and Arik Air, as well as the airline’s operational status during a specific period. His statements regarding the written-off debt, his personal relationship with Arik Air’s founder, and the airline’s loan servicing record are all key elements in the ongoing trial. The court’s assessment of his testimony, alongside other evidence presented, will ultimately determine the outcome of this complex case involving substantial financial figures and prominent individuals. The trial continues, and further testimonies and evidence are expected to provide a more comprehensive picture of the alleged financial misappropriation.
