The fourth prosecution witness in the trial of former Managing Director of the Asset Management Corporation of Nigeria, Ahmed Kuru, has told a Lagos Special Offences Court that AMCON transferred some of Arik Air’s assets before the expiration of a 90-day repayment window granted to the airline.
The witness, an Assistant Director with the Economic and Financial Crimes Commission, Bawa Kaltungo, gave the evidence before Justice Mojisola Dada.
Kuru is standing trial alongside Kamilu Alaba Omokide, Captain Roy Ilegbodu, Union Bank Plc and Super Bravo Limited over an alleged fraud involving N76 billion and $31.5 million linked to Arik Air.
The EFCC has accused them of conspiracy, stealing, abuse of office and making false statements in relation to the alleged fraudulent conversion of the airline’s assets.
Led in evidence by prosecution counsel, Dr Wahab Shittu (SAN), Kaltungo told the court that while corporate restructuring is permissible, it must comply strictly with due process and legal safeguards.
He said AMCON’s legal and regulatory framework allows it to form subsidiaries, expand operations and transfer shared assets, but such transfers must comply with the law, protect the rights of all parties and align with principles of good faith.
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According to him, legal advice from AMCON’s Legal and Regulatory Compliance unit recommended that any transfer of Arik’s assets should be effected through a deed of transfer between the relevant subsidiaries, ensuring proper documentation and transparency.
However, he said AMCON’s direct transfer of the assets to Super Bravo Limited departed from that recommendation.
Kaltungo referred to a letter dated October 22, 2020, in which AMCON demanded repayment of Arik Air’s outstanding debt within 90 days.
He told the court that the period between October 22 and December 31, 2020, was less than the stipulated 90 days, noting that the grace period would have expired on January 20, 2021.
He further testified that there exists a signed but undated deed of transfer conveying three aircraft to Super Bravo in 2020.
“This suggests that the deed of transfer should have occurred after the 90-day period, which expired on January 20, 2021, and not in 2020 as indicated,” he said.
The witness added that effecting the transfer before the expiration of the grace period was capable of depriving Arik Air of its right to the assets if it had settled the debt within the stipulated time.
He said the premature transfer could be interpreted as acting in bad faith and might amount to a breach of exemption rights under the President’s Conveyance Act 1571.
Kaltungo also told the court that Kuru’s management team ought to have known that AMCON lacked the expertise to run an airline.
He alleged that Arik Air was placed under receivership despite the express position of a former AMCON Managing Director, Mustafa Chike-Obi, who had previously resolved not to declare the airline insolvent.
On Wednesday, February 25, the witness tendered minutes of a meeting of the Central Bank of Nigeria detailing the controversial takeover of Arik Air. Justice Dada admitted a Certified True Copy of the minutes and a petition with 39 annexures in evidence.
The court adjourned the case until April 28 and 29, 2026, for continuation of trial.
