NewStats: 3,262,318 , 8,176,802 topics. Date: Sunday, 01 June 2025 at 07:08 PM 434322

Alleged N76bn Fraud: Ex-Bank Director Testifies, Says He Wrote Off Arik’s $2.3m Debt

The EFCC had arraigned the defendants before the court on a six-count charge bordering on conspiracy and stealing by dishonestly taking the property of another.

A former group executive director of Union Bank PLC, Austen Obigwe, has told the Lagos State Special Offences Court sitting in Ikeja, how he wrote off a $2.3 million debt owed by Arik Air to his private company, Staal Corp.

Obigwe disclosed this while continuing his evidence as the second prosecution witness before Justice Mojisola Dada in the trial of the former managing director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and four others, who are standing trial for allegedly defrauding Arik Airline of ₦76 billion and $31.5 million, respectively.

The Economic and Financial Crimes Commission (EFCC) had arraigned the defendants before the court on a six-count charge bordering on conspiracy and stealing by dishonestly taking the property of another.

Apart from Kuru, the other defendants are the former receiver manager of Arik Air Limited, Kamilu Omokide; Arik Air’s Chief Executive Officer, Captain Roy Ilegbodu; Union Bank of Nigeria PLC; and another company, Super Bravo Limited.

They all pleaded not guilty to the charges, and Justice Dada granted them bail in the sum of ₦20 million each, with one surety in like sum.

At the last sitting of the court on March 19, the witness commenced his testimony while being led in evidence by prosecution counsel, Senior Advocate of Nigeria, Wahab Shittu.

He also answered questions under cross-examination from counsel to the first and third defendants, Senior Advocate of Nigeria, Prof. Taiwo Osipitan.

In continuation of his testimony on Wednesday, Obigwe answered questions under cross-examination from three Senior Advocates of Nigeria, Olasupo Shasore (for the second defendant); Olalekan Ojo (for the fourth defendant); and Tayo Oyedepo (for the fifth defendant).

In his testimony, Obigwe told the court that, in 2011, two years after he exited Union Bank, Arik Air was indebted to his company, Staal, for $2.3m.

He stated that the amount was never repaid but that he had written it off due to the operational difficulties faced by the airline at the time.

“I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” Obigwe told the court.

The witness also confirmed that following his exit from Union Bank, he began consultancy engagements with Arik Air and other companies.

When asked whether the founder of Arik Air, Johnson Arumemi-Ikhide, was a personal acquaintance, he responded in the affirmative, noting that although he currently has no formal relationship with the airline, he maintains a relationship with Arumemi-Ikhide.

Obigwe reiterated that in 2009, he participated in an inspection of 26 aircraft “purportedly” belonging to Arik Air.

According to him, the aircraft were found to be airworthy and in good condition, based on assessments provided by Lufthansa.

“I had no reason to doubt Lufthansa’s evaluation,” he said, adding that the purpose of the inspection was to ensure that the airline’s fleet had not been depleted.

When asked about the airline’s compliance with its loan obligations, Obigwe testified that during his tenure at Union Bank, there were no complaints from other financial institutions suggesting that Arik Air was defaulting on its loan obligations. He also confirmed that, to the best of his knowledge, Arik Air was servicing its loan with Union Bank during his tenure.

Responding to a letter dated April 23, 2009, allegedly written by AMCON to Union Bank concerning a ₦46.11 billion debt owed by Arik Air, the witness stated that the letter was not brought to his attention while he was still with the bank.

On the character and management of Arik Air, the witness said: “I can only speak for the period I was there. When I was in Union Bank, Arik Air was one of the best companies.”

When questioned on the options available to lenders when a loan becomes non-performing, Obigwe responded that the lender may choose to transfer the loan to another bank, reassign it, or enforce the security tied to the loan.

He acknowledged that a lender is legally empowered to dispose of the security in the event of default by the borrower.

The case has been adjourned till June 4 for continuation of trial.

https://www.channelstv.com/2025/05/28/alleged-n76bn-fraud-ex-bank-director-testifies-says-he-wrote-off-ariks-2-3m-debt/

Crime everywhere

What did I just read

What 😳

Lol

From the head in Aso rock to the bottom


Corruption reign supreme

PlanetZero:
From the head in Aso rock to the bottom


Corruption reign supreme

Dey play.... Crime is everywhere. Even your Messiah form Agulu isn't exempted. Person rule your state for 8 years and all what he can show as signatory project is a beer factory.

For complete 8 years; no school, no better government agencies to absorb the unemployed youths in that state. And he is walking freely and you still have the audacity to present him as a presidential candidate?

PlanetZero:
From the head in Aso rock to the bottom


Corruption reign supreme

Na presidency dey hungry you!
The great Jagaban will spend 8 years in Aso rock.
No shaking!

Very Interesting 🤔
A Former-Bank Director,had that Audacity to Write Off the $2.3 Million ( Dollars) Money 🤑,of Another Company- Owing Your Bank- just like that! Haba!!!
Is that the Process of Writing -Off Loan Facilities- of a Huge Amount,in a Bank?
Is that how NBillions Loan Facilities Are Written- Off,by one Single Man- a Director,who came from Another Bank,during Consolidation Exercise,when some of these Banks Being Acquired Did Not Even Worth it,but were Imposed,on the Acquiring Banks and that is Why Some Banks -don't Venture into Any Acquisition of Others ,during Bank Consolidation Exercises because of terrible things underneath.
Or Alternatively,may be the Boards of Directors Of the Bank,at that time -gave him Power to do so - for that is the Only thing that can save him with this Statement.
Imagine the Humongous NBILLIONS Value Of the Money $💰,at the time of Write- Off.
Na waoo!

The headline did not do justice to the content. From the headline, its asume that a bank wrote off the debt while the content states that it was a private company STAAL, established by an ex- bank (Union Bank) staff that wrote off the debt accumulated by Arik to his company. I assume that the company must be a servicing company to have written off such a huge debt. We should be careful with sensationalising headlines here as most of nairalanders just comment from the headline post without reading the contents

akpumping7720:

Dey play.... Crime is everywhere. Even your Messiah form Agulu isn't exempted. Person rule your state for 8 years and all what he can show as signatory project is a beer factory.

For complete 8 years; no school, no better government agencies to absorb the unemployed youths in that state. And he is walking freely and you still have the audacity to present him as a presidential candidate?

Messiah??

From

Ruled

Let's be guided, pls.

To break generational poverty takes more than hardwork, seriously been an employee doesn't mean you become rich,... Check almost the billionaires and multimillionaire history.... Someone had to sacrifice his integrity for the rest to enjoy..... Nothing good comes easy.... But sha say no to crime

Naija we hail thee

Bluntemperor:
Very Interesting 🤔
A Former-Bank Director,had that Audacity to Write Off the $2.3 Million ( Dollars) Money 🤑,of Another Company- Owing Your Bank- just like that! Haba!!!
Is that the Process of Writing -Off Loan Facilities- of a Huge Amount,in a Bank?
Is that how NBillions Loan Facilities Are Written- Off,by one Single Man- a Director,who came from Another Bank,during Consolidation Exercise,when some of these Banks Being Acquired Did Not Even Worth it,but were Imposed,on the Acquiring Banks and that is Why Some Banks -don't Venture into Any Acquisition of Others ,during Bank Consolidation Exercises because of terrible things underneath.
Or Alternatively,may be the Boards of Directors Of the Bank,at that time -gave him Power to do so - for that is the Only thing that can save him with this Statement.
Imagine the Humongous NBILLIONS Value Of the Money $💰,at the time of Write- Off.
Na waoo!

Probably you missed this (in his testimony, Obigwe told the court that, in 2011, two years after he exited Union Bank, Arik Air was indebted to his company, Staal, for $2.3m.)

kelechiodo:
The headline did not do justice to the content. From the headline, its asume that a bank wrote off the debt while the content states that it was a private company STAAL, established by an ex- bank (Union Bank) staff that wrote off the debt accumulated by Arik to his company. I assume that the company must be a servicing company to have written off such a huge debt. We should be careful with sensationalising headlines here as most of nairalanders just comment from the headline post without reading the contents

"When asked whether the founder of Arik Air, Johnson Arumemi-Ikhide, was a personal acquaintance, he responded in the affirmative, noting that although he currently has no formal relationship with the airline, he maintains a relationship with Arumemi-Ikhide"

That's why it's good to have millionaire in dollars friends when in need Those lawyers may want to link his past with the present

When a criminal is in power, you must find crime everywhere. With Pablo in charge, we should not expect less.
"That is the game" - Tinubu

AguluLiar:


Na presidency dey hungry you!
The great Jagaban will spend 8 years in Aso rock.
No shaking!

Yes he will spend more years. I wish he can be life president. At least his reign is favoring me. Let him spend at least 20 years

akpumping7720:

Dey play.... Crime is everywhere. Even your Messiah form Agulu isn't exempted. Person rule your state for 8 years and all what he can show as signatory project is a beer factory.

For complete 8 years; no school, no better government agencies to absorb the unemployed youths in that state. And he is walking freely and you still have the audacity to present him as a presidential candidate?

loonatik
Obi go give your family blood pressure
Leaves the topic at hand and starts attacking obi🤣🤣🤣🤣🤣
No go use double barrel end ur existence o

Jonzing777:
To break generational poverty takes more than hardwork, seriously been an employee doesn't mean you become rich,... Check almost the billionaires and multimillionaire history.... Someone had to sacrifice his integrity for the rest to enjoy..... Nothing good comes easy.... But sha say no to crime

This mindset to solving poverty is a trap.

For Nigerians, we believe we can rise above the institutional rot and succeed despite that. And that generational poverty can be solved with wealth.

In fact one can build immense wealth and lose it in one day in Nigeria. Every business in Nigeria is equally vulnerable to some crazy policy or poor decisions of its institutions.

Arik Air was one of the most promising airlines in Nigeria. They had the biggest fleet. But due to infrastructural deficits and weak governmental institutions, it did not only fail to meet its potential, it collapsed for lack of due process.

David’s dad said the same.

Niok:
loonatik
Obi go give your family blood pressure
Leaves the topic at hand and starts attacking obi🤣🤣🤣🤣🤣
No go use double barrel end ur existence o

.
E enter abi? You left the topic and look for a way to smuggle Aso rock 001 into the conversation. Aura for aura nya miri.

akpumping7720:

Dey play.... Crime is everywhere. Even your Messiah form Agulu isn't exempted. Person rule your state for 8 years and all what he can show as signatory project is a beer factory.

For complete 8 years; no school, no better government agencies to absorb the unemployed youths in that state. And he is walking freely and you still have the audacity to present him as a presidential candidate?

Quilty mind...d person u quoted didn't mention Peter obi name... but u don rush...haba naso una take dey fear Peter obi

Corruption is a Nigerian

Bluntemperor:
Very Interesting 🤔
A Former-Bank Director,had that Audacity to Write Off the $2.3 Million ( Dollars) Money 🤑,of Another Company- Owing Your Bank- just like that! Haba!!!
Is that the Process of Writing -Off Loan Facilities- of a Huge Amount,in a Bank?
Is that how NBillions Loan Facilities Are Written- Off,by one Single Man- a Director,who came from Another Bank,during Consolidation Exercise,when some of these Banks Being Acquired Did Not Even Worth it,but were Imposed,on the Acquiring Banks and that is Why Some Banks -don't Venture into Any Acquisition of Others ,during Bank Consolidation Exercises because of terrible things underneath.
Or Alternatively,may be the Boards of Directors Of the Bank,at that time -gave him Power to do so - for that is the Only thing that can save him with this Statement.
Imagine the Humongous NBILLIONS Value Of the Money $💰,at the time of Write- Off.
Na waoo!

Read well. Owed to his private company.

Bluntemperor:
Very Interesting 🤔
A Former-Bank Director,had that Audacity to Write Off the $2.3 Million ( Dollars) Money 🤑,of Another Company- Owing Your Bank- just like that! Haba!!!
Is that the Process of Writing -Off Loan Facilities- of a Huge Amount,in a Bank?
Is that how NBillions Loan Facilities Are Written- Off,by one Single Man- a Director,who came from Another Bank,during Consolidation Exercise,when some of these Banks Being Acquired Did Not Even Worth it,but were Imposed,on the Acquiring Banks and that is Why Some Banks -don't Venture into Any Acquisition of Others ,during Bank Consolidation Exercises because of terrible things underneath.
Or Alternatively,may be the Boards of Directors Of the Bank,at that time -gave him Power to do so - for that is the Only thing that can save him with this Statement.
Imagine the Humongous NBILLIONS Value Of the Money $💰,at the time of Write- Off.
Na waoo!

Austin Obigwe has always been like this. He resigned from Citizens Bank as executive director to become Abacha man hiding his money all over the world. Together with Abacha family they awarded multimillion dollar contract to their company Harbour Engineering that had no office and personnel. The contract was the dredging of Imo River to provide shipping channel to ASCON in Ikot Abasi. When Abacha died he disappeared. The money was fully paid but no job was done.

He must have made a fortune from the Abacha loot. He must have converted some the monies that he hide for Abacha that the family and Nigeria might not know. Nigeria is a wonder.

vikstandon:



Read well. Owed to his private company.

Ok,you got it but just being curious, since the Company is his own,why should they ( EFCC) be bringing him in again and be interrogating him,as a Private Company.
They should Free him ,I beg!

Very interesting case ,I see conflict of interest ...A bank pays your bill yet you aren't faithful as its executive in taking just and fair decision to grow the bank . Shareholders investment are being managed anyhow .. It is so sad. There are procedures to follow before written off any loan of that magnitude ...did the man follow the due process .. Trust lawyers to do justice on the matter. May God help us to live right in this nation Nigeria...

Dantatanazzy007:
Quilty mind...d person u quoted didn't mention Peter obi name... but u don rush...haba naso una take dey fear Peter obi

Dey play..... You are reading his mind before you know abi? Just dey play. We all know what we are doing.

Why should we fear Obi. When his genuine score card in Anambla is equivalent to the score card of the chairman of Lagelu local government.

Hmmmm