19th June, 2023
The management of Arik Air Limited (in receivership) has dismissed allegations of misappropriation of funds to the tune of N120 billion.
Mr. Kamilu Omokide, the Receiver Manager appointed by the Assets Management Corporation of Nigeria for Arik Air, was reportedly held by the Economic and Financial Crimes Commission over alleged embezzlement and diversion of over N120 billion.
In response to the news, the airline called the report “well-concocted lies” and said it was part of a “deliberate campaign of calumny against the Receiver Manager.”
According to the statement issued by the airline’s media consultant agency, SY & T Communications Limited, the alleged N120 billion misappropriation was mentioned in a suit filed by Mr. Femi Falana.
Mr. Simon Tumba, the CEO of SY & T Communications, described Sir Arumemi Johnson, Arik’s largest shareholder, as “the true subject of the investigation” in the statement.
The statement added, “Johnson guarantees the N240bn owed by Arik to AMCON as of May 31, 2023, and is, therefore, an obligor in respect of this indebtedness and is personally liable for them.”
It further read in part,” This statement is issued on behalf of Arik Air Limited (in receivership) under the leadership of its Receiver Manager, Omokide, Kamilu Alaba, in response to recent media reports concerning an EFCC investigation into the affairs of Arik. These reports have unjustifiably, and without verification of the facts, linked the Receiver Manager of Arik to financial fraud within Arik.
“The investigation is apparently based on a petition filed by Mr. Femi Falana, SAN (the petition) and was instigated by Sir Arumemi Johnson, the majority shareholder in Arik, which owes AMCON about N240 billion as of May 31, 2023. Sir Arumemi Johnson guaranteed, and therefore is by law an obligor in respect of, this indebtedness and is personally liable for them.
“The wild allegations of the misappropriation of N120bn in the petition are manifestly and patently false and amount to no more than well-concocted lies as part of a deliberate campaign of calumny against the Receiver Manager to abort the ongoing receivership in Arik. Indeed, even on the face of the petition, the claims do not add up to N120 billion. It is made up as a publicity stunt.”
“Also, the statement noted that the receiver manager seeks only to recover money owed to the Nigerian people by the debtor, assuring that he and the airline workers would accord the EFCC maximum cooperation.”
Additionally, Arik Air disputed the allegations of “deceptive portrayal of the actions of the receiver manager, suggesting underhand sales of assets, including a number of CRJ aircraft.”
According to the statement, the receiver manager’s accusations are unfounded, and they have no influence over a mortgagee’s exercise of mortgage rights, noting that the JV financing of certain wet lease operations, which are novel ways of raising capital, raises no criminal intent.
Taking down a Boeing 737-700 registered as 5N-MJI, it said, was a professional choice made on an aircraft that was beyond affordable repair.
“Furthermore, the petition raises concerns about the teardown of a Boeing 737-700 aircraft registered as 5N-MJI, which had been abandoned and cannibalised in Malta ever since 2013 by Arik under the then leadership of Sir Johnson and years before the receivership commenced.
“This was a professionally taken decision on an aircraft that was Beyond Economic Repairs (BER) and stood the chance of being sent to the graveyard by the authorities of the relevant airport in Malta. The pre-teardown valuation of the aircraft by McLarens (a foremost aircraft valuation company) valued the aircraft at $1.5 million. This was, however, seized by Lufthansa Technik over Arik’s indebtedness incurred pre-receivership.
“The receiver manager firmly asserts his unwavering determination to steadfastly defend the delicately constructed integrity he has nurtured, firmly refusing to permit any baseless allegations to besmirch it. He assures that he and all staff of Arik Air Limited (in receiver) will accord EFCC maximum cooperation”.