The Lagos Special Offences Court has admitted into evidence a Court of Appeal judgment upholding the legality of the Asset Management Corporation of Nigeria's receivership of Arik Air in the ongoing NGN76 billion naira (USD55.1 million) fraud trial of former AMCON managing director Ahmed Kuru and four co-defendants.
According to a statement by AMCON, a certified copy of the appellate ruling was tendered during the cross-examination on June 25 of the Economic and Financial Crimes Commission's (EFCC) fourth prosecution witness, Bawa Usman Kaltungo.
That appeal court judgment had overturned an earlier ruling that Arik Air founder, Johnson Arumemi-Ikhide, had relied on to challenge the legality of AMCON's appointment of a receiver-manager for the airline.
During cross-examination, Kaltungo acknowledged that investigators had not traced proceeds from the dismantling of an Arik aircraft, valued at USD31.5 million, to the personal accounts of Kuru or former Arik Air CEO Roy Ilegbodu.
Kuru, former receiver-manager Kamilu Omokhide, Ilegbodu, Union Bank Plc and an entity called Super Bravo Limited are facing six charges, including "bordering on alleged conspiracy", stealing, abuse of office, and fraudulent handling of Arik Air assets. Prosecutors also allege the dismantling of the CRJ900ER, 5N-JEA (msn 15058), was unlawful and harmed the airline's interests.
The defence argued that the aircraft's owner had authorised the teardown and submitted court documents it said supported the claim.
The EFCC witness maintained the dismantling was illegal but conceded that no direct financial benefit from the transaction had been linked to the defendants.
The court also admitted documents relating to AMCON board resolutions authorising the establishment and share allotment of NG Eagle (2N, Lagos), with the witness acknowledging that Kuru and Ilegbodu did not derive any pecuniary benefit from those transactions.
After just having resumed since it was adjourned in May, the long-standing case was adjourned to July 7 to hear an interlocutory application, and the trial has been scheduled for continuation on October 26 to 29.
