An Economic and Financial Crimes Commission witness, Bawa Kaltungo, on Tuesday admitted that the board of the Asset Management Corporation of Nigeria approved the NG Eagle transaction involving former AMCON Managing Director, Ahmed Kuru, who is standing trial over an alleged N76bn fraud involving Arik Air.
Kaltungo also told the Special Offences Court sitting in Ikeja, Lagos, that about N149m realised from the transaction was paid into AMCON’s account with the Central Bank of Nigeria.
The admissions came during cross-examination by Kuru’s counsel, Olasupo Shasore, SAN, before Justice Mojisola Dada.
Kaltungo, the fourth prosecution witness, further admitted that Kuru did not take decisions concerning the transaction without the approval of AMCON’s board, then chaired by Dr Amos Adamu.
The testimony challenged the prosecution witness’s earlier assertion that Kuru had acted unilaterally in matters concerning the airline and the transactions involving NG Eagle and Super Bravo Limited.
Shasore had questioned the basis for the EFCC’s claim that the companies were illegally established, asking the witness to explain the findings contained in his investigation report.
“In your investigation report, you said AMCON illegally set up NG Eagle and another HoldCo called Super Bravo. Please explain to this court how they are illegal,” the defence counsel asked.
In response, Kaltungo said the EFCC relied on intelligence, including a Federal High Court judgment purportedly nullifying the sale of NG Eagle.
However, under further questioning, he admitted that he was unaware during the investigation that the judgment had been appealed against and subsequently set aside by an appellate court.
The witness also acknowledged that his memory could fail him, saying he was only human.
Tuesday’s proceedings followed Kaltungo’s testimony on Monday that Arik Air was not indebted to Union Bank of Nigeria Plc and that the basis for appointing a receiver-manager over the airline was faulty.
“The foundation for the appointment of a receivership over Arik Air was fraudulent and faulty. There was no bad debt; it does not exist,” he told the court.
Kaltungo, who heads the EFCC’s Lagos Zonal Directorate 2, said his investigation into a petition concerning the airline led him to conclude that the purported debt underpinning the receivership did not exist.
He also said he had communicated his findings to AMCON’s top management.
On Monday, Justice Dada admitted AMCON board resolutions tendered by Kuru’s counsel, Uyi Giwa-Osagie, to challenge the witness’s claim that the former managing director had unilaterally approved Arik Air’s receivership.
The prosecution objected to the documents on grounds of relevance. However, the judge held that they emanated from AMCON’s board as a corporate body and had been duly certified in accordance with Section 104 of the Evidence Act.
The defence argued that the resolutions were necessary to establish the circumstances surrounding the receivership and determine Kuru’s role in the decisions taken by AMCON.
The defendants are Kuru; Kamilu Alaba Omokide, a former receiver-manager of Arik Air; Captain Roy Ilegbodu, the airline’s chief executive officer; Union Bank of Nigeria Plc; and Super Bravo Limited.
They are facing a six-count charge bordering on conspiracy, stealing and abuse of office following a petition by human rights lawyer, Femi Falana, SAN, on behalf of Arik Air’s promoters and shareholders.
One of the counts alleges that Union Bank made false statements to AMCON about Arik Air’s performing loans in 2011, leading to the transfer of a purportedly bogus N71bn debt to the corporation.
Another alleges that Kuru, Omokide and Ilegbodu fraudulently converted N4.9bn belonging to Arik Air for the use of NG Eagle Limited in 2022.
The defendants pleaded not guilty when they were arraigned on January 20, 2025.
Trial continues on Wednesday, October 28, 2026.