The fourth prosecution witness in the ongoing trial of former Managing Director of the Asset Management Corporation of Nigeria, Ahmed Kuru, and others, has told a Lagos Special Offences Court that AMCON did not wait for the expiration of a 90-day repayment period granted to Arik Air before transferring some of the airline’s assets to SuperBravo Limited.
The witness, an Assistant Director of the Economic and Financial Crimes Commission, Bawa Kaltungo, gave the evidence before Justice Mojisola Dada.
Mr Kuru is standing trial alongside Kamilu Alaba Omokide, Captain Roy Ilegbodu, Union Bank Plc and Super Bravo Limited over an alleged fraud involving N76bn and $31.5m linked to the defunct Arik Air.
The EFCC has alleged conspiracy, stealing, abuse of office and making false statements in relation to the alleged fraudulent conversion of Arik Air’s assets.
Led in examination-in-chief by the prosecution counsel, Dr Wahab Shittu (SAN), Mr Kaltungo who read from a legal position and analysis, told the court that although corporate restructuring is permissible, it must strictly comply with due process and established legal safeguards.
He added that “ transfer of shared assets to subsidiary companies must not only comply with the law but must also comply with due process, safeguard the rights of all parties involved, and align with principles of good faith and human rights.”
When asked for his view on the transfer of Arik’s assets to SuperBravo, Mr Kaltungo said the legal advice from the Legal and Regulatory Compliance unit of AMCON had emphasised that any such transfer should be effected through a deed of transfer between the relevant subsidiaries.
He stated that AMCON’s direct transfer of the assets to SuperBravo departed from that recommendation.
Continuing his testimony, Mr Kaltungo referred to a letter dated October 22, 2020, in which AMCON demanded payment of Arik Air’s outstanding debt within 90 days.
He told the court that a simple calculation shows that the period between October 22, 2020, and December 31, 2020, is less than 90 days.
The witness stated that the 90-day grace period would have expired on January 20, 2021.
He noted, however, that there exists a signed deed of transfer conveying three aircraft to SuperBravo by AMCON in 2020, although the deed itself was undated.
“This suggests that the deed of transfer should have occurred after the 90-day period, which expired on 20th January 2021, and not in 2020 as indicated earlier,” he told the court.
According to him, effecting the transfer before the expiration of the grace period was capable of depriving Arik of its right to the assets tied to the deed, in the event that the debt was settled within the stipulated time.
“The transfer in these circumstances was capable of causing ARIK to lose its right to the assets tied to the deed, in the event that they were able to pay the debt before the end of the grace period,” he testified.
Mr Kaltungo also stated that such action “may be interpreted as acting in bad faith on the part of AMCON and the receiver-manager,” and that the premature transfer “may also amount to a breach of exemption rights, as outlined in the President’s Conveyance Act 1571, a document of general application and approval.”
The witness also told the court that Mr Kuru’s management team reasonably ought to have known that AMCON lacked the capacity and expertise to run an airline.
“Despite this, he placed Arik Air Ltd under receivership against the express advice of his predecessor, Mustafa Chike-Obi, who had previously resolved not to declare receivership over Arik Air,” he said, citing AMCON’s lack of expertise in airline management.
Earlier, the witness tendered minutes of a Central Bank of Nigeria meeting detailing the controversial takeover of Arik Air.
Justice Dada admitted in evidence the Certified True Copy of the CBN meeting’s minutes and a petition with 39 annexures.
The court adjourned the matter until April 28 and 29, 2026, for continuation of trial.
