The management of Arik Air Limited (under receivership) has denied claims of N120 billion in cash theft.
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 for alleged embezzlement and diversion of around N120 billion.
In response to the news, the airline said the claim was “nothing more than well-concocted lies and forms part of a deliberate campaign of calumny against the Receiver Manager.”
According to the declaration obtained on Sunday, the alleged misappropriation of N120 billion was contained in a case filed by Mr Femi Falana.
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.”
“Johnson guarantees the N240bn owed by Arik to AMCON as of May 31, 2023,” the statement continued, “and is, therefore, an obligor in respect of this indebtedness and is personally liable for them.”
“This statement is issued on behalf of Arik Air Limited (in receivership) under the direction of its receiver manager, Omokide, Kamilu Alaba, in response to recent media reports concerning an EFCC investigation into the affairs of Arik,” it said. Unjustifiably and without supporting evidence, these reports have connected the Receiver Manager of Arik to internal financial malfeasance.
“The probe appears to be founded on a petition submitted by Mr. Femi Falana, SAN (the petition), and it was started by Sir Arumemi Johnson, the majority stakeholder in Arik, which owes AMCON nearly N240 billion as of May 31, 2023. Sir Arumemi Johnson personally guaranteed the debt, making him an obligor under the law and responsible for it.
“The outrageous claims of the misuse of N120 billion in the petition are plainly and glaringly false and amount to nothing more than carefully crafted lies as part of a planned campaign of slander against the Receiver Manager to terminate the ongoing receivership in Arik. In fact, the claims do not add up to N120 billion even on the surface of the petition. It was invented as a publicity gimmick.
Assuring that he and the airline employees will cooperate fully with the EFCC, the statement further underlined that the receiver manager aims solely to recover money owed to the Nigerian people by the debtor.
Arik Air further denied charges of “deceptive portrayal of the receiver manager’s actions, implying underhanded 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 JV financing of certain wet lease operations, which are innovative ways of raising capital, raises no criminal intent.
The statement went on to say that taking down a Boeing 737-700 registered as 5N-MJI was a professional choice made on an aircraft that was beyond economic repair.
“Furthermore, the petition raises questions about the disassembly of a Boeing 737-700 aircraft registered as 5N-MJI in Malta, which had been abandoned and cannibalized by Arik since 2013 under the then-leadership of Sir Johnson and years before the receivership started, it added. This was a professionally made choice regarding an aircraft that was deemed to be Beyond Economic Repairs (BER) and was at risk of being abandoned by the management of the relevant airport in Malta. The aircraft was evaluated at $1.5 million in its pre-teardown appraisal by McLarens, a renowned aviation valuation firm. However, due to pre-receivership debt incurred by Arik, Lufthansa Technik seized this.
“The receiver manager firmly asserts his unwavering determination to steadfastly defend the delicately crafted integrity he has nurtured,” it continued. “He firmly refuses to allow any unfounded allegations to tarnish it.” He promises to give the EFCC their fullest cooperation, along with the rest of the Arik Air Limited (in receiver) team.
