A former Group Executive Director of Union Bank Plc, Mr. Austine Obigwe, has told a Lagos court how he forgave a \$2.3 million debt owed by Arik Air to his private firm, Staal, during his testimony in an ongoing fraud trial.
Obigwe appeared before Justice Mojisola Dada of the Lagos State Special Offences Court in Ikeja on Wednesday as the second prosecution witness in the Economic and Financial Crimes Commission’s (EFCC) case against the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru, and four others.
The defendants are standing trial on a six-count charge bordering on conspiracy, stealing, and abuse of office involving over N76 billion and \$31.5 million.
Obigwe, during cross-examination, explained that he wrote off the \$2.3 million in 2011 — two years after he left Union Bank in 2009 — because Arik Air was going through financial difficulties. “I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he said.
He confirmed that although he had a personal relationship with Arik Air founder, Sir Johnson Arumemi-Ikhide, he currently has no business dealings with the airline. After his time at Union Bank, he worked as a consultant for Arik Air and other organisations.
The EFCC is prosecuting Kuru alongside former Arik Air Receiver Manager, Mr. Kamilu Omokide; Arik CEO, Capt. Roy Ilegbodu; Union Bank of Nigeria Plc; and Super Bravo Ltd. All defendants have pleaded not guilty, and the court granted them bail in the sum of N20 million each with one surety.
Speaking further, Obigwe said that during his time at Union Bank, Arik Air’s loan facilities were performing well, and there were no repayment issues. He explained that the bank provided guarantees for Arik Air to purchase five aircraft — three Boeing 737s for domestic use and two Airbus A340-500 for international routes — through export credit agencies like Coface (Germany), ECGD (UK), and the US EXIM Bank.
He clarified that Union Bank did not invest its own funds in the guarantees. “Union Bank did not commit any money for the guarantee of the 85 per cent. It was covered by the export credit agencies,” he added.
On the airline’s assets, Obigwe said he participated in an inspection of 26 Arik aircraft in 2009, all certified airworthy by Lufthansa. “I had no reason to doubt Lufthansa’s evaluation,” he stated.
Under further questioning, he denied knowledge of an AMCON letter from April 2009 alleging a N46.11 billion debt, insisting it never reached him before his exit from Union Bank.
He concluded by saying that Union Bank had legal means to recover loans, including disposing of collateral, and described Arik Air, during his tenure, as “one of the best companies.”
The case was adjourned to June 4 for continuation of trial.
