Shareholders of Arik Air have faulted the report by the Asset Management Corporation of Nigeria (AMCON), which claimed that the airline owed the corporation N227,637,469,394.34.
The shareholders in a statement issued yesterday by their spokesman, Godwin Aideloje, described the debt claim as another example of AMCON’s habitual and disingenuous misinformation strategy.
“It is not surprising that AMCON launched this disinformation campaign since the federal government filed a six charge against Mr. Ahmed Kuru (former AMCON – MD), Mr. Kamilu Alaba Omokide (Receiver Manager- Arik), Capt. Roy Ilegbodu (CEO – Arik in Receivership), Union Bank Plc, and Super Bravo Limited at the Special Offences Court of the Lagos High Court over the Arik Air receivership with its upcoming arraignment on Monday, January 20, 2025. This is in addition to the 90-day pre-action notice served in December 2024 by the shareholders of Arik Air Limited for a legal action to hold AMCON accountable for its mismanagement and destruction of the airline. It is not surprising AMCON has resumed its campaign of calumny, rage, and disinformation on which it had thrived for about 8 years of forceful receivership of Arik Air,” the statement explained.
The shareholders added that: “Now that AMCON announced after eight years of receivership that it inherited 30 aircraft, we demand they account to Nigerians and the travelling public, how they have mismanaged 27 aircraft to only three flying as of today. At least the travelling public can testify to the substantially reduced route network and operations of the airline.”
They noted that the operational failure of AMCON and its appointed receiver management has been exposed to all Nigerians.
“The so-called inventory of Arik’s assets, which AMCON touts as evidence of the airline’s insolvency, is nothing more than a poorly crafted attempt to deflect attention from their inability to run the airline effectively. The travelling public can testify to the over 85% closure of domestic routes, total closure of all regional and international routes, mismanagement and loss of highly sought-after London Heathrow and JFK New York slots, a drastic reduction in fleet size, and the erosion of goodwill built over years of hard work and dedication by Arik Air’s original management and staff.”
The shareholders gave details of the Arik Air fleet under AMCON receivership as follows: One Boeing737-800NG seized in 2023 (six years into the receivership) in Lithuania for the failure of AMCON to meet the airline’s obligations; one Boeing 737-700NG abandoned in Malta and now cannibalised and traded in grey market (2023); two Boeing 737-700NG abandoned in bad conditions without engines in Johannesburg South Africa) and Addis Ababa( Ethiopia) by the AMCON-appointed Receiver Manager.
“This is in addition to about 24 aircraft engines that were shipped abroad by the Receiver Managers in 2019 for maintenance and are yet to return. Another set of three new aircraft spare aircraft engines, huge spare parts inventory, and ground handling equipment have disappeared and without being accounted for under AMCON receivership,” the statement stated.
They also claimed that Arik Air Limited did not default on its repayment obligations, insisting that AMCON created a receivership to take over the airline, which neither served the interest of the airline nor the country.
They equally described as false, AMCON’s claim that Arik Air was insolvent and mismanaged before the receivership, according to a purported PwC report.
The shareholders stated that the 2014 audited financial reports of the airline were completed and duly signed by the Arik management, while the 2015 management accounts were concluded and forwarded to PwC for auditing in 2016, before AMCON forcefully took over Arik on February 9, 2017, and interrupted the process.
The shareholders recalled that the Federal High Court judgment of March 31, 2023, had ordered AMCON and its Receiver Manager to file audited financial reports with the Corporate Affairs Commission (CAC) for the period of receivership to the date of judgment within 14 days, which was not obeyed by AMCON.
The shareholders described AMCON’s claim that it took over Arik Air under government mandate as a gross misrepresentation of the federal government as being in the business of arbitrary takeover of private businesses with a stroke of pen, insisting that the claim was a disservice to the government and people of Nigeria by AMCON.
The shareholders further argued that before the forceful takeover, Arik Air was recognised for its operational excellence and significant contributions to Nigeria’s aviation sector.
On alleged indebtedness to banks by AMCON, the shareholders said that the alleged debt to Union Bank is a matter before the court, adding that they would not resort to remarks that are sub judice.
Reacting to the issue of the total indebtedness of both Arik Air and Arumemi-Ikhide’s other business interests, which AMCON claimed had risen to N455 billion, the shareholders stated that: “This allegation is defeated by AMCON’s claim in its Suit No. FHC/L/CS/175/17 with which it took Arik Air into receivership and gained full control and management of operations, assets, and liabilities of the airline,” the statement said.
on alleged debt of Ojemaie Farms Limited , Ojemaie Investment Limited and Rockson Engineering Nigeria Limited, the shareholders said it was surprising that Mr. Jude Nwauzor AMCON storyteller, will resort to false allegations on an international press conference where he alleged Ojemaie Farms and Ojemaie Investment are indebtedness to AMCON. Contrary to his claim, Neither Ojemaie Farms nor Ojemaie Investments Limited is indebted to AMCON. This issue has been settled in a court affirmed settlement signed by the AMCON management and Ojemaie Farms and Ojemaie Investment in Suit No. FHC/L/CS 1828/2015. What a pity that Mr. Nwauzor made such false statements on issues settled by law courts over 7 years ago.
“In the case of Rockson Engineering Limited, which is before the Federal High Court in Suit No FHC/L/CS 1129/2019 for determination. AMCON has a claim of N63B against Rockson Engineering Nigeria arising from over 3 years delayed payments for power projects by the Federal Government. This non servicing of letters of credit issued by Intercontinental Bank Plc (Mr. Gbenga Alade, the current MD of AMCON superintended upon these letters of credit as an Executive Director of Intercontinental Bank at the time,) However, upon the funding of the letters of credit by the federal government, the Bank collected all the funds and stated that the funds was insufficient to meet the principal, interest and default charges. Please note the power equipment arrived Nigeria well ahead before the funding of the letters of credit by Federal Government. Please note that AMCON is claiming N63B Court while Rockson Engineering Nigeria has a counterclaim of $700M against AMCON. It is sad that AMCON, held a press conference to misinform the public and overreach the courts, in its desperate attempt to cover the malfeasance that have been perpetrated in one of its several receiverships.
“We urge Mr. Nwauzor to acquiesce himself to facts and correctly understand subjects before descending into the arena to discuss them. Sadly, the power generation deficit in Nigeria today arose from AMCON meddling in power projects being handled by Rockson Engineering Nigeria Limited , these projects were at about 80% completion before AMCON led by Mr. Ahmed Kuru meddled with the projects and “created” receivership ( to use his words in one of his correspondences ) , leading to distortion in the project plan and abandonment for the past 7 years,” the shareholders said.
They further described AMCON’s press conference as yet another desperate attempt to cover a 9- month pregnancy with a finger and urged AMCON to desist from falsehood peddling and be accountable.
