Arik Air denies diverting N120 billion.

Arik Air Limited’s management has denied claims of the misuse of N120 billion in funds while the company is under receivership.

According to reports, the Assets Management Corporation of Nigeria’s receiver manager for Arik Air, Mr. Kamilu Omokide, was detained by the Economic and Financial Crimes Commission for allegedly misappropriating and diverting nearly N120 billion.

The airline responded to the news by describing the allegation as untrue and claiming that it was the result of a planned campaign of smears against the receiver manager.

The airline claimed in the statement, which was made available to The PUNCH on Sunday, that Mr. Femi Falana’s appeal contained information about the alleged misuse of N120 billion.

The airline’s PR consultant, SY & T Communications Limited, provided the statement to them.

The primary shareholder of Arik, Sir Arumemi Johnson, was referred to in the announcement by Mr. Simon Tumba, Chief Executive Officer of SY & T Communications, as “the true subject of the investigation.”

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.”

Arik Air further refuted claims that the receiver manager’s actions were “deceptively portrayed, suggesting shady sales of assets, including a number of CRJ aircraft.”

The statement contends that the allegations against the receiver manager are unfounded and have no bearing on how a mortgagee exercises their rights under a mortgage, noting that the JV financing of some wet lease operations, which is an inventive method of raising capital, raises no suspicion of criminal intent.

A Boeing 737-700 aircraft with the registration number 5N-MJI was torn down, according to the statement, and this was a professional decision made because the aircraft couldn’t be repaired for a reasonable price.

It said, “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.

It added, “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”