Startling revelations emerged on Wednesday at the Special Offences Court in Ikeja, Lagos, over an alleged N76 billion fraud involving former AMCON Managing Director, Mr. Ahmed Kuru, and four others.

A former Executive Director of Credit at AMCON, Mr. Abas Jega, testified that Union Bank of Nigeria Plc had transferred a performing loan to AMCON under the guise of it being non-performing.

The Economic and Financial Crimes Commission (EFCC) has charged Kuru, the former Receiver Manager of Arik Air, Mr. Kamilu Omokide, Arik Air CEO Captain Roy Ilegbodu, Union Bank, and Super Bravo Limited with conspiracy, theft, and abuse of office. All defendants pleaded not guilty and were granted bail of N20 million each with one surety.

Testifying before Justice Mojisola Dada, Jega disclosed that the transaction in question came to light during a meeting between AMCON and Union Bank in London. “We discovered that the loan, which Union Bank had labelled non-performing, was in fact guaranteed by foreign lenders and actively serviced,” he said.

He added that AMCON demanded a refund from Union Bank, as the loan failed to meet CBN guidelines for acquisition, which permit only non-performing loans.

Jega also testified that Arik Air’s Chairman became evasive after the transfer, possibly due to confusion over his obligations. “He avoided communication because he believed a non-performing loan did not require his accountability,” Jega noted.

He further explained that AMCON did not inject new funds into Arik, and the refund recovered from Union Bank was retained for other uses. He stressed that aviation loans often involve foreign backing, as in Arik’s case.

To stabilise the airline, AMCON proposed appointing a managing director and financial controller, but Arik delayed implementation.