Austen Obigwe, a former group executive director of Union Bank PLC, disclosed to the Lagos State Special Offences Court in Ikeja how he had written off a $2.3 million debt owed to his private company, Staal Corp.
In the trial of Ahmed Kuru, the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), and four others who are accused of allegedly defrauding Arik Airline of N$76 billion and $ 33.55 million, respectively, Obigwe made the disclosure while continuing his evidence as the second prosecution witness before Justice Mojisola Dada.
The defendants were arraigned by the Economic and Financial Crimes Commission (EFCC) on a six-count conspiracy and stealing charges that involved dishonestly stealing another person’s property.
The former Arik Air Limited Receiver Manager, Kamilu Omokide, Arik Air’s Chief Executive Officer, Captain Roy Ilegbodu, Union Bank of Nigeria PLC, and another company, Super Bravo Limited, are the other defendants.
Justice Dada had granted them bail in the amount of N20 million each, with one surety in the same amount, after they all pleaded not guilty to the charges.
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The witness commenced his testimony at the court’s final session on March 19 while Wahab Shittu, the prosecution’s Senior Advocate of Nigeria, led the witness in evidence. Additionally, he responded to questions from Prof. Taiwo Osipitan, the Senior Advocate of Nigeria, and the Ist and third defendants’ attorneys.
Obigwe responded to questions from three senior Nigerian attorneys on Wednesday in continuation of his testimony, answering those from Olasupo Shasore (for the second defendant), Olalekan Ojo (for the fourth defendant), and Tayo Oyedepo (for the fifth defendant).
Obigwe testified to the court that Arik Air owed $2.3 million to his business, Staal, in his testimony two years after he left Union Bank.
He claimed that the money was never returned, but that he had written it off because the airline had problems running at the time.
“I’m not interested in collecting it,” I said. When I learned that Arik Air was experiencing difficulties, I wrote it off,” Obigwe told the court.
He also confirmed that he began consulting work with Arik Air and other businesses after leaving Union Bank.
Johnson Arumemi-Ikhide, the founder of Arik Air, responded in the affirmative when asked if he had a personal connection with the airline. He noted that despite his absence from a formal relationship with the airline, he still maintains a relationship with Arumemi-Ikhide.
Obigwe reiterated that he participated in an Arik Air-related inspection of 26 aircraft in 2009.
According to him, based on Lufthansa’s evaluations, the aircrafts were determined to be airworthy and in good condition.
He claimed that there was no cause for doubt about Lufthansa’s evaluation, adding that the inspection’s goal was to prevent the airline’s fleet from being exhausted.
Obigwe testified that there were no complaints from other financial institutions suggesting Arik Air was defaulting on its loan obligations during his tenure at Union Bank. He also confirmed that Arik Air was, to the best of his knowledge, utilizing Union Bank as a source of information during his tenure.
The witness claimed that the letter, which allegedly came from AMCON to Union Bank on April 23, 2009, was not brought up while he was still with the bank.
The witness questioned Arik Air’s character and management, saying, “I can only speak for the period I was there. Arik Air was one of the best companies I worked for when I was a union bank employee.
When questioned about the options open to lenders when a loan becomes non-performing, Obigwe responded that the lender may choose to transfer the loan to another bank, resend it, or impose the loan’s security.
In the event of a borrower defaulting, he acknowledged that a lender has the legal authority to dispose of the security.