Arik Air funds diverted to NG Eagle, EFCC witness alleges

File photo: Arik-Air

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The Economic and Financial Crimes Commission on Monday tendered several financial documents before the Special Offences Court sitting in Ikeja, Lagos, alleging that billions of naira and foreign currency loans belonging to Arik Air were diverted and used to establish NG Eagle Airlines.

Investigating officer, Bawa Kaltungo, presented the findings while being led in evidence by prosecution counsel, Dr. Wahab Shittu (SAN).

Former Managing Director of the Asset Management Corporation of Nigeria, Mr. Ahmed Kuru, is standing trial alongside Kamilu Alaba Omokide, Captain Roy Ilegbodu, Union Bank Plc, and Super Bravo Limited.

Kaltungo told Justice Mojisola Dada that Arik’s account officer documented the transfer of N1.9bn and N4.9bn from Arik Air for activities unrelated to its operations, including costs attributed to NG Eagle.

He further stated that NG Eagle’s expenses, including staff salaries and quarterly financial obligations, were paid from Arik’s accounts.

He tendered several documents, including correspondence, internal memos, restructuring records, notices of assignment, and payment instructions, which he said formed part of the EFCC’s findings.

A 2010 document allegedly signed by Arik’s CEO showed a payment of N100m, while another indicated that Arik serviced foreign loans totaling $114,784,000 from export credit agencies.

According to Kaltungo, Arik executed quarterly repayments on these loans through authorised transfers.

The witness also highlighted evidence showing Union Bank’s restructuring of Arik’s debt in 2010 and 2011, including a November 2010 approval and a December 2010 update.

He tendered a 2015 general indemnity valued at over N46 bn, which guaranteed the bank’s exposure.

Kaltungo read part of a 2011 letter where Arik questioned Union Bank over the alleged sale of its loans to AMCON, noting that the airline received no formal notice and sought clarity on its agreements with foreign credit agencies.

Another document, a February 2011 Notice of Assignment, indicated third-party involvement in the transactions.

He cited several letters from 2010 and 2011 authorising transfers involving Arik’s safety accounts, operating accounts, loan commitments and maintenance payments, including a  $4.6m transfer acknowledged by both Arik and Union Bank.

One June 2010 letter showed Arik’s chairman expressing appreciation to Union Bank for its support and listing achievements of the partnership.

Kaltungo also described correspondence between AMCON and Union Bank, adding that Arik was not informed about the loan sale.

He noted irregularities in figures supplied, saying,“What Union Bank sold is N71 bn, but I am seeing N34bn; the figure does not reflect what Union Bank sold to AMCON.”

He read a January 21, 2011 letter from Arik to former President Goodluck Jonathan seeking government intervention.

The EFCC investigator further revealed that Arik Air leased crew members to Ibom Air and received payments, but said the money was not accounted for under the receivership managed by the first defendant.

Evidence of transfers from Ibom Air’s Zenith Bank account supported the claim.

Kaltungo added that a certificate of identification, along with Arik’s 2015 and 2016 annual statements, showed that the airline was not under receivership at that time, contrary to reported claims.

He said receivership commenced on February 17, 2017, yet signatures attributed to receivership appeared on documents from 2015 and 2016, signed by the first and second defendants who were not Arik staff.

He tendered a board resolution showing that an Arik Air aircraft engine was leased back to Arik, with defendants directing that payments should go into AMCON remittal account.

The agreement required: $70,000 monthly basic rent, payable in advance; $340 per flight hour; and $200 per completed engine cycle.

The agreement was signed by a director of Super Bravo Limited.

The matter was adjourned  till January 2 and 3, 2026, for continuation of trial.

Onozure is a correspondent of The PUNCH on the judiciary beat. She has over a decade experience covering criminal and civil matters from the magistrate to the appellate courts. She’s a graduate of Political Science

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