EX-UNION BANK EXECUTIVE TELLS COURT HOW HE WROTE OFF $2.3M ARIK AIR DEBT OWED TO HIS FIRM

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By Aishat Momoh. O.

A former Group Executive Director of Union Bank Plc, Austen Obigwe, has revealed to the Lagos State Special Offences Court in Ikeja how he wrote off a $2.3 million debt owed to his private company, Staal Corp, by Arik Air, due to the airline’s financial difficulties.

Obigwe made the disclosure on Wednesday while testifying as the second prosecution witness in the ongoing trial of former Asset Management Corporation of Nigeria (AMCON) Managing Director, Ahmed Kuru, and four others accused of defrauding Arik Air of over N76 billion and $31.5 million.

Led in cross-examination by defence counsel, Obigwe testified that in 2011—two years after his exit from Union Bank Arik Air had failed to repay the $2.3 million owed to Staal Corp. He told the court that he chose to write off the debt after observing the airline’s operational challenges. “I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he said.

The Economic and Financial Crimes Commission (EFCC) arraigned Kuru, former Arik Receiver Manager Kamilu Omokide, Arik CEO Captain Roy Ilegbodu, Union Bank Plc, and Super Bravo Limited on a six-count charge bordering on conspiracy and stealing. All defendants have pleaded not guilty and are currently out on bail.

Obigwe also admitted under questioning that he had a personal relationship with Arik founder Johnson Arumemi-Ikhide and had previously worked with Arik in a consultancy capacity after leaving Union Bank. He further testified that during his tenure, Arik Air was considered financially sound and was servicing its Union Bank loans without default.

The witness also recalled participating in a 2009 inspection of Arik’s 26 aircraft, confirming they were found to be airworthy based on assessments by Lufthansa. “I had no reason to doubt Lufthansa’s evaluation,” he said.

Obigwe stated he had no knowledge of a letter dated April 23, 2009, from AMCON to Union Bank regarding a N46.11 billion debt allegedly owed by Arik, as the document was not presented to him during his time at the bank.

He concluded by acknowledging that lenders are entitled to enforce security or reassign loans when borrowers default.

Justice Mojisola Dada adjourned the matter till June 4 for the continuation of trial.