The trial of former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, took a dramatic turn yesterday as a prosecution witness told the Lagos Special Offences Court that the corporation transferred some of Arik Air’s assets before the expiration of a 90-day repayment window.
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The fourth prosecution witness, Bawa Kaltungo, an Assistant Director with the Economic and Financial Crimes Commission (EFCC), made the disclosure before Justice Mojisola Dada.
Kuru is standing trial alongside Kamilu Alaba Omokide, Captain Roy Ilegbodu, Union Bank of Nigeria Plc and Super Bravo Limited over an alleged fraud involving N76 billion and $31.5 million linked to the defunct Arik Air.
The EFCC has filed charges bordering on conspiracy, stealing, abuse of office and making false statements in connection with the alleged fraudulent conversion of the airline’s assets.
Led in evidence by prosecution counsel, Wahab Shittu (SAN), Kaltungo told the court that although corporate restructuring is permissible, it must strictly comply with due process and legal safeguards.
He explained that while a corporation may form subsidiaries and transfer assets as part of expansion or revitalisation efforts, such actions must align with the law, uphold good faith and protect the rights of all parties involved.
Kaltungo referred to a letter dated October 22, 2020, in which AMCON demanded repayment of Arik Air’s outstanding debt within 90 days. According to him, simple arithmetic shows that the period between October 22 and December 31, 2020, is less than 90 days.
He told the court that the 90-day grace period would have expired on January 20, 2021.
However, he noted that a signed deed of transfer conveying three aircraft to Super Bravo by AMCON was executed in 2020, although the document was undated.
“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 earlier,” Kaltungo said.
He maintained that effecting the transfer before the expiration of the grace period could have deprived Arik Air of its rights to the assets if the airline had settled the debt 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.
The witness added that such action could be interpreted as bad faith on the part of AMCON and the receiver-manager, and may amount to a breach of exemption rights.
Kaltungo further told the court that legal advice from AMCON’s Legal and Regulatory Compliance unit had emphasised that any asset transfer should be effected through a deed between relevant subsidiaries, ensuring proper documentation and transparency.
He stated that AMCON’s direct transfer of the assets to Super Bravo departed from that recommendation.
The EFCC official also testified that Kuru’s management team ought to have known that AMCON lacked the capacity and expertise to run an airline.
Despite this, he said, Arik Air was placed under receivership against the express advice of Kuru’s predecessor, Mustafa Chike-Obi, who had earlier resolved not to declare receivership over the airline.
On Wednesday, the witness tendered minutes of a meeting of the Central Bank of Nigeria detailing the controversial takeover of Arik Air.
Justice Dada admitted in evidence a Certified True Copy of the CBN meeting minutes and a petition with 39 annexures.
The case was adjourned until April 28 and 29, 2026, for continuation of trial.
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