Condemnation trail Arik’s N387bn debts

**Call for arrest of Arik promoters’ heightens
**Nigerians wait for KPMG’s report-Ore
A groundswell of condemnation has trailed the mismanagement of Arik Airline following additional revelations by the Assets Management Corporation of Nigeria (AMCON) that the former management of the carrier systematically plunged the airline into N387bn debts.
Former Director of Flight Operations, Capt. Dele Ore heaped the blame on the door step of Sir Johnson Arumeni-Ikhide allegedly appropriating what he said was the property of Nigerians. 
 
But Arumemi-Ikhide had severally disputed claims that he ran the airline aground. He attributed the carrier’s predicament to government’s policy that had in no small measure affected airlines.
arik-4
 Ore said Nigerians are eagerly waiting for the KPMG report, which outcome he said would help the government to take appropriate action against Sir Arumeni-Ikhide for deliberately leading the airline to its present pitiable state. He said it would be most appropriate for the government to arrest and prosecute him to serve as deterrent to other business men like him. 
His word: “He (Arumeni-Ikhide) previously depended on Federal protection, which some us knew would be short-lived as it has eventually played-out with change of government. With such huge debt profile no right-thinking government would continue to cover it up, which was why the government ordered Assets Management Corporation of Nigeria (AMCON) to step in the fleet of 30 aircraft was fast disappearing among other discoveries.
Speaking in the same vein, Managing Director, Merchant Express Cargo Airlines Limited, Capt. Sina Akinfenwa said the revival of Arik could take two or more years because of the rot that was allowed to permeate the airline.
 He said the airline collected aviation intervention fund but frittered it away. According to him, “I want Nigerians to ask the former managers of Arik what happened to that fund. At that time they collected the intervention fund, they claimed it was meant to bail out the airlines so what happened to the money? If it is gone should that government pump in another fund without asking questions? 
“We are talking about billions of naira the government injected into Arik and other operators. Arik’s problem is primarily man made because they were not doing the right thing. If you are doing the right thing, government will be willing to encourage you, but as it is now, how do you expect government to support you when you owe the same government so much money? “Be that as it may, the essence of business is that you are credit worthy. You cannot ignore your creditors, which Arik was notorious for.” 
An affidavit deposed to the court last week revealed that the insurance policy for the airline’s airplanes was to lapse on February 10, 2017 because the airline owes N418, 893, 067.97 as arrears of unpaid premium just as it reeled out other indebtedness such as N4, 586, 860, 471.50 being the outstanding pension remittance; Lufthansa Technik Group, the company responsible for the maintenance of Arik’s airplanes is owed 31 million euros; Zenith and Access Banks are owed N28, 346, 678, 438.00 and N9, 447, 673, 924.00.
Travel solution provider, Amadeus Marketing Nigeria had according to court paper had threatened to terminate its service contract on account of outstanding obligations of about N632, 490, 151.40. Arik was also indebted to Mariot and Best Western Hotel for the cost of N3, 800, 000 used to accommodate the engineers and other staff.
AMCON said in the course of the receivership, the second plaintiff (Oluseye Opasanya) who is receiver/manager Arik Air Limited, had received diverse claims from financial institutions, service providers, suppliers, including aviation fuel suppliers, airport and aviation authorities, insurance providers, governmental agencies, employees, pilots and many others in excess of N300 billion
AMCOM however put the total indebtedness of the airline at N387billion. Other breakdown includes N11, 215, 279, 204.19 claim from the Federal Airports Authority of Nigeria (FAAN) for services and alleged use of FAAN’s facilities by the carrier. N337, 500, 000.00 claim from Pan African Capital Limited for financial advisory services allegedly rendered to Arik; N277, 420, 978.19 being a judgement debt allegedly due to Nigerian Aviation Handling Company Plc in suit number FHC/ABJ/CS/234/08 and accrued interest of N62, 575, 254.92; N203, 895,020.37 claims for aviation insurance cover; N60, 750, 000.00, claim from Babington Ashaye and Co for tax consulting services allegedly rendered to the Arik.
Also in the claim is N40, 156, 144.68 to WakaNow.com for alleged incentive pay-out on the 1st Defendant ticket sales for the period 01 January -31 December 2016; $53, 422, 583, 17 claim from Export Development Canada being monies allegedly due from the lease of aircraft and one spare engine; $30,000,000.00, being alleged outstanding indebtedness due to Sky Enterprises LLC by the 1st Defendant; $2,500,000.00 being judgment sum alleged to have been awarded in favour of Prince Arthur Eze and Atlas Petroleum Limited in Appeal Number CA/L/378/2016; $2,500,000.00 being a claim by Ike, Ike & Associates on behalf of Prince Arthur Eze in respect of a loan alleged to have been advanced to the 1st Defendant; $942,147.02. being monies allegedly due to the FAAN for services and use of FAAN’s facilities by the 1st Defendant; $479,036.92 from Bird & Bird LLP UK on behalf of their client, Airline Rotables Ltd, being claim allegedly due for services rendered and invoiced to the 1st Defendant.
Wole Shadare