EX-AMCON DIRECTOR: UNION BANK MISLED US ON ARIK’S LOAN STATUS, DEBT LATER BECAME NON-PERFORMING - WITNESS

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By Aishat Momoh. O.

A former Executive Director of Credits at the Asset Management Corporation of Nigeria (AMCON), Mr. Muhammed Jega, told an Ikeja Special Offences Court on Monday that Arik Air’s multi-billion naira debt was eventually reclassified as non-performing, contradicting his earlier testimony.

Jega, testifying as the third prosecution witness in the ongoing trial of former AMCON Managing Director Ahmed Kuru and four others over alleged N76 billion and $31.5 million fraud, made the admission under cross-examination.

The defendants include Kamilu Omokide, former Receiver Manager of Arik Air; Roy Ilegbodu, the airline’s CEO; Union Bank; and Super Bravo Ltd. They are standing trial on a five-count charge bordering on theft, abuse of office, and dishonest acquisition of property. Union Bank is also separately charged with making false statements to a public officer.

In his earlier testimony, Jega had told the court that Arik’s N85 billion loan—purchased from Union Bank and Bank PHB under AMCON’s Eligible Bank Asset (EBA) programme—was classified as performing. But on Monday, he admitted the loan became non-performing before his exit from AMCON in 2015.

“Although I served as Executive Director of Credits and acted with board approval, I never saw the detailed loan purchase agreement with Union Bank,” he said. “Union Bank reported the loans were performing. But by the time I left AMCON, the Arik loan had become non-performing.”

Jega added that AMCON had injected an additional N11 billion working capital into Arik, and also guaranteed intervention funds from the Bank of Industry (BOI), yet Arik failed to meet repayment obligations.

The witness claimed Union Bank misled AMCON by initially presenting the loans as healthy. “It was during a London meeting between the obligor and AMCON management that issues with the loan became clear,” he said. However, Jega could not explain why he failed to escalate the discrepancies to the AMCON board or the Central Bank of Nigeria.

Under cross-examination by Kuru’s counsel, Mr. Olasupo Sasore (SAN), Jega confirmed that Arik’s chairman once approached him for a consultancy role with the airline, which he declined following advice.

“My relationship with all my clients remained professional,” he said.

Justice Mojisola Dada adjourned the matter until July 1 for continuation of trial.