- Shareholders: Airline Valued $3.7bn in 2014, Request for Statement of Company’s Affairs
Asset Management Corporation of Nigeria (AMCON) has exonerated the Arik Air Receiver Manager, Kamilu Omokide Alaba and insists that the founder of the airline, Sir Arumemi Johnson owed AMCON N240 billion and described him as a bully borrower.
This was contained in a statement issued on behalf of Arik Air Limited (in Receivership) under the leadership of its Receiver Manager, Omokide Alaba in response to recent media reports concerning EFCC investigation into the affairs of Arik and signed by Simon Tumba of SY & T Communications Ltd, PR Consultants to the Receiver Manager, Arik Air.
The statement emphasized that these reports have unjustifiably, and without verification of the facts, linked the Receiver Manager of Arik to financial fraud within Arik.
It explained that the investigation was based on a petition filed by Mr. Femi Falana (SAN) allegedly instigated by Sir Arumemi Johnson, the majority shareholder in Arik, which owes AMCON about ₦240 billion as at May 31, 2023; adding that Sir Arumemi Johnson guaranteed and therefore is by law an obligor in respect of this indebtedness and is personally liable for them.
The statement said the wild allegations of the misappropriation of N120 billion in the petition were manifestly and patently false and amounted 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.”
“The Petition intentionally presents a disingenuous and deceptive portrayal of actions which are the typical responsibilities and actions of a Receiver/Manager – falsely implying criminal intent. The reality is very different: it is instead that the Receiver Manager seeks only to recover for the Nigerian people, monies owed to them by this recalcitrant debtor.
“The Receiver Manager has been transparent in his dealings in Arik. The Petition, as has been presented in the media, suggests underhand sales of assets, including a number of CRJ Aircraft. These Aircraft were never owned by Arik. They were simply leased by Arik. The planes were owned by JEM Leasing Limited and JEM Air Limited (both foreign companies) and financed by Export Development Canada (a Crown entity of the Government of Canada) (EDC). These two foreign companies and EDC were the principal actors in the sale of the said Aircraft. The Receiver Manager has no influence in respect of the exercise of mortgage rights by a mortgagee. This has been clearly affirmed by EDC who have unequivocally confirmed, including through diplomatic channels, that it was it and the two foreign companies that sold these assets. The accusations against the Receiver Manager are therefore, cynical and unfounded,” the statement said.
The statement went further to say that the Petition suggested a criminal intent in respect of the JV financing of certain wet lease operations, stating that these JV financings were innovative ways of raising capital due to restrictions on Arik borrowing powers– as it is a company that was technically insolvent and being kept alive only by the magnanimity of AMCON, and federal aviation agencies.
“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 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 USD1.5Million. This was however seized by Lufthansa Technik over Arik’s indebtedness incurred pre-receivership,” the statement also said.
It further stated, “All patriotic Nigerians should be deeply concerned by the influence peddling of a recalcitrant debtor to instigate security agencies against a “public-interest” receivership. The desperate resort by Sir Arumemi Johnson to all forms of bullying, “shake down attempts” and other underhand tactics is pitiful. The tactics have been deployed, and are still being deployed, in contempt of existing court orders, and in respect of matters that are currently before various courts, and it is worrisome that the EFCC is being sought to be used to overreach the courts which are seized of these matters. This should not be allowed to happen or, to the extent that they have already happened, to continue to happen, as it represents forum shopping in respect of issues already before the relevant courts.
“The task of recovering monies owed by powerful men who have over time peddled their influence to “game” the system in their favour is tough and sometimes odious. It requires the cooperation of Nigerians and all agencies of government, to achieve. Despite the contrived petitions and unwarranted allegations against the Receiver Manager, he remains resolute and undeterred in ensuring the successful execution of the receivership over Arik.”
The statement noted that the Receiver Manager firmly asserted “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.”
However, reacting to the allegations contained in the statement by AMCON, Media Office of the Shareholders of Arik Air Limited said the airline was valued at $3.7 billion in 2014 by the Delloite of London three years before it was taken over by AMCON on February 9, 2017, adding that the valuation was a product of months of forensic review of all assets and visits to all worldwide stations of the airline.
“It will be recalled that AMCON through an exparte order in suit No, FHC/L/CS/175/17obtained on 9th February in 2017 based upon allegations of indebtedness of Naira 141billion the sum which is less than 5% of the valuation of the airline.
The shareholders statement recalled that in 2021, Arik Air shareholders through Senator Aniete Okon made a public demand for AMCON to file the statement of affairs of the company in order for the shareholders to ascertain the state of the alleged indebtedness but AMCON bluntly refused and resorted to name calling.
“Now, it is interesting that after over 80 days that the federal high court ruled on March 31st, 2023, that the Receiver Manager and AMCON should within 14 days of the judgement file the audited accounts of Arik Air with the Corporate Affairs Commission, the receiver manager and AMCON have not filed that account. In addition, the receiver manager disobeyed the order of court for unfettered access for the shareholders/directors into their offices in the Arik Air Aviation Center offices at the Murtala Mohammed Airport, Lagos.
“That, notwithstanding, upon news of sales of some Arik Air assets and inventory in the international aviation circuit, Arik Air Limited lawyers resorted to private investigations which culminated in a recent petition to the EFCC. We therefore plead that all parties restrain themselves from overreaching or meddling with the investigation. It serves equity and respect that we do not in any way disparage agency of government and or persons but encourage them to do their work in the best interest of justice.
“In that regard therefore, we will not comment on any activities of innovative management financing solutions by the receiver manager and the purported sale and or tear down of the CRJ 1000, B737NG and other such aircraft and assets of the airline that are subjects of investigation.
“In the meantime, we have advised our lawyers to properly evaluate all matters relating third party involvement in the ongoing matter with the intention to appropriately address all issues solely within the remit of the law,” the statement said.
