Abdulazeez Abdulwahab
PETER Omokaro, a prosecution witness in the ongoing trial of a former Managing Director of Asset Management Corporation (AMCON), Ahmed Kuru, today, told a Lagos State Special Offences Court that Arik Airline never obtained any loan from Union Bank Plc.
The witness also told the court that Union Bank only guaranteed facilities secured by the airline from two foreign banks, HSBC Bank and US EXIM Bank, to facilitate the acquisition of aircraft from Airbus and Boeing.
The Economic and Financial Crimes Commission (EFCC) had arraigned Kuru, Umaru Hamidu Modibbo and Sigma Golf Nigeria Limited before the court over allegations of stealing N20 billion from AMCON to purchase Keystone Bank.
The witness, who was Assistant General Manager, Treasury Department of Union Bank, said this in his evidence-in-chief against the former Managing Director of Asset Management Cooperation of Nigeria (AMCON), Ahmed Kuru, for allegedly defrauding Arik Air.
Kuru and four others are alleged of N76 billion and $31.5 million fraud, respectively.
The other defendants are the former Receiver Manager of Arik Airline Ltd., Kamilu Omokide, Chief Executive Officer of the airline, Capt. Roy Ilegbodu, Union Bank Ltd and Super Bravo Ltd.
Omokaro, the first prosecution witness was being led in evidence by the Economic and Financial Crimes Commission (EFCC) counsel, Dr. Wahab Shittu (SAN).
Omokaro told the court that he worked with Union Bank from 1980 to 2015 and he was an Assistant General Manager at the time he exited the bank.
He told the court that he was invited by EFCC to make a statement in relation to the fraud case.
The witness said Arik Air approached the bank for a purchase of aircraft.
According to him, Union Bank only guaranteed facilities secured by the airline from two foreign banks, HSBC Bank and US EXIM Bank, to facilitate the acquisition of aircraft from Airbus and Boeing.
He said: “Union Bank, in turn, collected indemnity from Arik Air and the aircraft were delivered.
“At no point did we disburse cash for the acquisition of the aircraft and in August 2009, Central Bank of Nigeria sent a team to take over the bank and there was an American guideline that talked about eligible assets to buy non-performing loans and commercial papers.
“Thereafter the executive management of Union Bank went ahead to sell the guarantee to AMCON.
“This happened before the end of December 2010 and in early 2011, when Union Bank discovered the error and tried to see how to legalise the wrong, a meeting took place in London between AMCON, Union Bank, HSBC Bank and US EXIM Bank with the exclusion of the main obligor, which was Arik Air.”
Omokaro further told the court that it was from the minutes of the meeting recorded that Union Bank wanted to step in as obligor to take over the responsibility of Arik Air.
He added that the foreign credit agencies did not call in the guarantee nor did the Union Bank return the call in indemnity.
The witness reiterated that he was surprised that the Union Bank granted a loan.
Omokaro said: “Union Bank never gave a loan to Arik Air
“Union Bank converted the guarantee to cash and used it to collect money from AMCON.
“The primary lender did not call in the guarantee neither did the bank call in the guarantee for Arik Air
“Union Bank did not disburse cash for the acquisition of the aircraft.
“In respect of this transaction, there was no default on the part of Arik Air because payments were up to date.”
The prosecution sought to tender five documents which were related to the transaction and the court admitted them in evidence.
The witness, under cross-examination by the counsel to the first and third defendants, Prof. Taiwo Osipitan (SAN), confirmed to the court that the first and third defendants were not part of the transaction.
“The first and third defendants were not part of the transaction.
“I was not at the London meeting,” he said.
The witness, while responding to the questions from Mr Olasupo Shasore (SAN), counsel to Kuru, said that the transaction took place in 2010 and that the third defendant was not the MD of AMCON at the time.
Counsel to Union Bank, Mr Olalekan Ojo (SAN) asked the witness to confirm to the court that he once sued Union Bank because his appointment was untimely terminated.
Eighteen-Eleven Media