AMCON Insider Breaks Silence: Explosive Testimony Links Union Bank to N76bn, $31.5m Fraud

A former director of the Asset Management Corporation of Nigeria (AMCON) has testified in a high-profile fraud case involving Union Bank, Arik Air, and senior officials of AMCON. The case, which is being heard at the Federal High Court in Lagos, centers on allegations of fraud totaling ₦76 billion and \$31.5 million. The Economic and Financial Crimes Commission (EFCC) has charged the former Managing Director of AMCON, Ahmed Kuru; former Arik Air Receiver Manager, Kamilu Omokide; Arik CEO, Captain Roy Ilegbodu; Union Bank Plc; and a private company, Super Bravo Ltd., with six counts including conspiracy, abuse of office, and fraudulent conversion of funds.

The EFCC’s first witness, Peter Omokaro, a former Assistant General Manager at Union Bank, told the court that Union Bank never disbursed loans directly to Arik Air. Instead, he explained, the bank acted as a guarantor for loan facilities provided by HSBC and the US EXIM Bank. Omokaro testified that Union Bank later sold these guarantee exposures to AMCON, a transaction he now believes may have been inappropriate. He stressed that Union Bank’s role was limited to issuing guarantees and that all the facilities involved were performing at the time, with no defaults recorded.

Following Omokaro’s testimony, Austine Obegwe, a retired Group Executive Director at Union Bank, took the stand as the second prosecution witness. He backed up Omokaro’s statement, reaffirming that Union Bank did not handle or distribute any funds to Arik Air. He stated that the bank’s involvement was strictly limited to guarantee arrangements for Arik’s aircraft financing deals, which were fully performing before they were transferred to AMCON.

During the session, the EFCC attempted to introduce several documents into evidence. However, the court rejected them, citing issues with proper certification and lack of authorship identification. The judge ruled the documents inadmissible, which posed a procedural setback for the prosecution. These documents reportedly included internal communications and financial records tied to AMCON’s acquisition of Union Bank’s exposures and its subsequent management of Arik Air.

The EFCC alleges that between 2011 and 2023, the defendants misused their positions to siphon funds meant for Arik Air’s rehabilitation after AMCON took over the airline. According to the commission, the defendants manipulated the receiver management process to misappropriate funds, with Super Bravo Ltd. allegedly serving as a conduit in the scheme. All the accused parties have pleaded not guilty and are currently out on bail.