Former AMCON MD, Mr. Ahmed Kuru
By SAM POPOOLA, Ikeja
The Lagos State Special Offences Court, sitting in Ikeja, on Wednesday heard how a new generation bank sold a performing loan as non-performing to Asset Management Corporation of Nigeria, AMCON, in the on-going criminal trial of alleged N76bn fraud leveled against Mr. Ahmed Kuru a former Managing Director of AMCON, and four others.
Being led in the examination in chief by Dr. Wahab Shittu, SAN, the 3rd Prosecution Witness, Abas Jega, a former Executive Director, Credit, AMCON, told the trial judge, Justice Mojisola Dada, that following a meeting between the AMCON Executives and executives of the new generation bank, in London, at the instance of the bank, the reality was dawn on them what the bank claimed to have been given to AMCON as loan was actually a guarantee giving to foreign lenders.
"When we took over the arrangement from the bank (the new generation bank) we found out that it was not performing. The nature of the facilities have changed. But Arik was not amenable to the cause. This would have complicated relationship between Arik and AMCON.
"When we came back to Nigeria from the London meeting, we approached the bank to explain the issue. We told the bank that they should return the money we paid for the guarantee. It was AMCON which made the payment on behalf of Arik Airline.
"I can record vividly that the Chairman of Arik was avoiding instruction from us because be believed he should not be speaking having non-performing loans with us".
The Witness said AMCON didn't give Arik money to help them sort out their problems. He testified that the loans AMCON gave was different from the one it recovered.
"The money we collected back from the bank as guarantee was being held in our purse for another purpose. We created a loan in AMCON, but the money was also with us.
"In Aviation industry, airlines don't take loans to buy aircrafts. They usually make arrangements, like Arik did, whereby they will get a bank to backroll", he said.
The Witness further testified while being in AMCON, he tried two things to save the situation which include appointing a managing director for Arik and a financial controller for oversight and financial control so as to save the airline from collapse.
He said, though, Arik agreed to the proposal, but they foot-dragged execution of the implementation. He said one of the directive of the Central Bank of Nigeria, is AMCON can only buy non-performing loans from banks.
Further hearing has been adjourned till June 30.
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