A prosecution witness told the Special Offences Court in Ikeja that a former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Lawan Kuru, diverted funds belonging to Arik Air to settle insurance debts owed by Umza Airline.
The witness, Bawal Usman Kaltungo, an Assistant Director with the Economic and Financial Crimes Commission (EFCC), made the claim while testifying before Justice Mojisola Dada.
Kuru is standing trial alongside other defendants over an alleged fraud involving N76 billion and $31.5 million connected to the management of the defunct Arik Air Limited.
Led in evidence by EFCC counsel, Dr. Wahab Shittu (SAN), the witness told the court that investigations revealed that money belonging to Arik Air was used to pay insurance obligations of Umza Airline while Kuru was serving as Receiver Manager of the airline.
He said investigators invited representatives of Umza Airline, who confirmed that Arik Air’s funds were used to offset their insurance liabilities.
According to him, Umza Aviation Services had begun repaying the money but had not completed the repayment at the time the investigation was ongoing.
Kaltungo further told the court that AMCON opened several accounts for Arik Air and assigned an account officer to oversee the airline’s loan account.
He said the account officer was invited by the EFCC and provided a statement of the loan account signed by him and another official, Justin Akune. The document was submitted to the commission with a covering letter.
The witness explained that the investigators were trying to determine whether the Receiver Manager was properly performing his duties but discovered that he was not acting in line with his mandate.
He also told the court that during the investigation, the first defendant, Kamilu Alaba Omokide, petitioned the Attorney-General, alleging harassment and requesting that the investigation be stopped.
According to the witness, the petition had 39 attachments and included a legal opinion written by the Attorney-General and signed by the Solicitor-General.
He said the head of the investigative team received copies of the petition, which was essentially asking that the EFCC halt its probe into the matter.
Other defendants in the case include Captain Roy Ilegbodu, Managing Director of Arik Air; Union Bank Plc; and Super Bravo Limited.
The EFCC has accused the defendants of conspiracy, stealing, abuse of office and making false statements in relation to the alleged fraudulent conversion of Arik Air’s assets.
Counsel to the defence informed the court that they would reserve their objections until the final address stage of the trial.
Justice Dada postponed the trial and fixed February 26, 2026, for the continuation of proceedings.