A retired banker, Austen Obigwe, took the witness box, on Wednesday, in the trial of a former Managing Director of Assets Management Corporation of Nigeria (AMCON), Ahmed Kuru and four others for allegedly defrauding Arik Air of N76 billion and $31.5 million, respectively.
Obigwe testified as the second prosecution witness in the case which is being tried before Justice Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos.
Led in evidence by the prosecuting counsel, Wahab Shittu (SAN), the witness testified that he started his banking career by serving at the then Icon Merchant Bank in 1982.
He later worked with Nigeria International Bank, Citizens Bank and retired as a former group executive director in charge of Corporate and international banking division, Union Bank in August 2009 when the Central Bank of Nigeria (CBN) took over the bank and sacked all its executive members.
Before he retired, Obigwe said he worked as Executive Director for interfacing with the board of Union Bank and Arik Air.
According to him, the bank handled the transaction with Arik Air, US EXIM to purchase three Aircraft for which Union Bank provided a guarantee.
“I was also involved in the financing of two Airbus 340-500. These aircraft were used for the New York and London Routes and this hub was the major success that proceeded the commendation from President Yar’Adua,” the witness testified.
“As a bank, we cannot fully fund these aircraft and so our strategy was to issue guarantees to big international banks like HSBC, Standard Chartered and others.
“For another three aloha planes, we were supported by US Exim Bank against the guarantee of Union Bank. When I left the services of Union Bank on August 9, 2009, all the facilities to Arik Air were performing and there was no past due obligation.”
Under cross examination from counsel to the Ist and 3rd defendants, Prof. Taiwo Osipitan, SAN, the witness admitted that Union Bank indeed part-financed together with HSBC London, Arik’s purchase of aircrafts to the tune of more than $20m.
The witness also disclosed that he worked for Arik as a consultant and the airline currently owed him about $2.3m.
Mr Obigwe also admitted that Arik did not own the 26 planes he and colleagues saw when they visited the airlines facilities across the country and until full repayment is made for the planes, the planes belonged to those who leased them to Arik.
He confirmed under cross examination his statement to the EFCC that Arik’s problem began when CBN ordered Banks in Nigeria to convert all transactions from off balance sheet to on balance sheet and to reduce their single Obligor exposure. This he said had the effect of increasing the interest paid by Arik on the loan from 3% to 33%.
The witness also answered questions from Olasupo Sashore (SAN).
A move by the prosecution counsel, Wahab Shittu (SAN) to tender in evidence the minutes of a meeting held in London by Union Bank and some financiers of the facility obtained by Arik Airline and guaranteed by the bank, raised strong objections from the defence team.
Prof. Taiwo Osipitan (SAN), Olasupo Sashore (SAN), and Olalekan Ojo (SAN), all representing the defendants opposed the document while arguing that the witness was not the original maker.
After listening to the lawyers, Justice Mojisola Dada in her ruling held that, “It is well established that a party must lay the proper foundation under the Evidence Act. Public documents must indeed be certified by a public official.”
Citing various decisions of the courts, the judge deemed the document inadmissible due to the witness’s lack of affiliation with AMCON, which holds the original document.
The judge emphasised the importance of proper certification as mandated by law, stating, “This witness cannot tender the document.”
Justice Dada has adjourned the matter till May 19 and 28, 2025 for continuation of trial.
The defendants, former MD of AMCON, Ahmed Kuru, a former Receiver Manager of Arik Airline Ltd., Kamilu Omokide; Chief Executive Officer of the airline, Capt. Roy Ilegbodu; Super Bravo Ltd. and Union Bank Plc are facing a six-count charge bordering on theft, abuse of office and stealing by dishonestly taking the property of another.
They all pleaded not guilty.
