By Henry Ojelu

LAGOS — A former Executive Director of Credits at the Asset Management Corporation of Nigeria, AMCON, Mr Muhammed Jega, yesterday, told an Ikeja Special Offences Court that the N85 billion loan linked to Arik Air fell under the category of non-performing loans.

Jega testified during the continuation of cross-examination in the ongoing fraud trial involving former AMCON Managing Director, Mr. Ahmed Kuru, and four others.

The defendants are facing a five-count charge bordering on theft, abuse of office, and dishonest acquisition of property, filed by the Economic and Financial Crimes Commission, EFCC.

Other defendants in the suit are former Receiver Manager of Arik Air Ltd., Kamilu Omokide; the airline’s Chief Executive Officer, Roy Ilegbodu; Union Bank; and a firm, Super Bravo Ltd.

Jega, the third prosecution witness, had previously stated that the Arik loan purchased by AMCON during the first phase of the Eligible Bank Asset, EBA, transaction was a performing loan.

However, under cross-examination by defence counsel, Prof. Taiwo Osipitan, SAN, he retracted his earlier testimony.
He told the court that the leadership of AMCON, which he was a part of, bought Arik’s N85 billion debt from Union Bank and the defunct Bank PHB, and later extended an additional N11 billion in working capital to the airline.

“Despite the huge injection of funds by AMCON and the Bank of Industry’s intervention, which AMCON guaranteed, Arik was unable to meet its obligations to AMCON until my exit in 2015,” Jega told the court.

He added: “Though I served as Executive Director, Credits, I acted with full board approval. However, I never sighted the detailed loan purchase agreement for the Arik debt acquired from Union Bank.

“Union Bank presented the loans as performing. In fact, they claimed there was no default on Arik’s part at the time of purchase. But when I left AMCON, it had clearly become a non-performing loan.”

Jega said AMCON had relied on minutes of a meeting in London authored and submitted by Union Bank as part of the loan negotiation and due diligence.