Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos, on Wednesday, was told how the Asset Management Corporation of Nigeria (AMCON), under the management of Ahmed Lawan Kuru, allegedly diverted funds belonging to Arik Air to offset insurance liabilities owed by Umza Airline Limited while the Airline was under Receivership
The fourth prosecution witness, Bawal Usman Kaltungo, an Assistant Director with the Economic and Financial Crimes Commission (EFCC), made the revelation while giving evidence in chief before the court today. He was led in evidence by prosecution counsel, Dr Wahab Shittu (SAN).
Kuru, alongside other defendants, is standing trial over an alleged fraud involving N76 billion and $31.5 million.
According to the EFCC, the defendants are accused of conspiracy, stealing, abuse of office and making false statements in connection with the alleged fraudulent conversion of assets belonging to the defunct Arik Air Limited.
Other defendants in the charge include Kamilu Alaba Omokide, the Receiver Manager of Arik Air; Captain Roy Ilegbodu, Managing Director of Arik Air; Union Bank Plc; and Super Bravo Limited.
Testifying before Justice Dada, the witness said investigations revealed that Arik Air’s funds were diverted to settle insurance obligations of Umza Airlines.
“In the course of investigation, we discovered that Arik Air’s money was used to pay the insurance cover of Umza Airlines. We invited Umza Airlines, which confirmed the development. We also found that Umza Aviation Services had commenced the repayment of the loan, but had not concluded payment it as at the time of investigation,” he said.
Kaltungo further told the court that investigators discovered that AMCON opened several accounts for Arik Air and assigned an account officer to manage the airline’s loan.
“We invited the account officer, who provided the statement of the loan account signed by him and one Justin Akune. The statement was submitted to the Commission with a covering letter.
The aim was to determine whether the Receiver Manager was performing the role for which he was appointed, but we discovered he was not,” the witness stated.
He also informed the court that during the investigation, the first defendant, Omokide, petitioned the Attorney-General, alleging harassment and seeking a halt to the probe.
According to him, the petition, which contained 39 attachments, was accompanied by a legal opinion written by the Attorney-General and signed by the Solicitor-General.
“My head of the investigative team received copies of the petition. It was essentially requesting that the investigation be stopped,” he added.
Counsel to the defence indicated that they would reserve their objections until the address stage.
Justice Dada subsequently adjourned further hearing in the matter until tomorrow, February 26, 2026
