NIGERIA — Arik Air has become embroiled in a dispute between its management and shareholders over an alleged N120 billion fraud and the investigation by the Economic and Financial Crimes Commission (EFCC). The management has denied all wrongdoing and claimed that the fraud petition was a false alarm by a "serial debtor" whilst shareholders have demanded an anti-graft investigation to unearth any mismanagement of assets. Guardian news reports.
The controversy has arisen as a result of the sale of a CRJ 1000 aircraft that was registered to Arik Air but deregistered by its foreign owners in 2022. The sale has caused a fraud petition and the EFCC's investigation into the airline. Receiver Manager, Kamilu Omokide, has claimed that the petition was instigated by Sir Arumemi-Ikhide (the majority shareholder in Arik), who is allegedly owing AMCON N240 billion as of May 31, 2022.
Despite these allegations, Arik Air shareholders deny any wrongdoing and have consistently been cleared by EFCC investigations. They maintain that the ongoing investigation should be respected by all parties and allowed to run its course without interference.
The dispute has also brought to light the ongoing ownership battle of the airline between AMCON, Arik Air (in-Receivership), and its shareholders. Before the receivership by AMCON, Arik Air Limited was valued at $3.7 billion by Deloitte of London. This valuation was based on a forensic review of all assets and visits to all worldwide stations, including the Nigerian base by the valuers in 2014. The sum of N141 billion, less than 5% of the valuation of the airline, was the amount upon which AMCON based its ex parte order in suit No. FHC/L/CS/175/17 obtained on 8th February in 2017.
The shareholders have called on all parties to show restraint and allow the EFCC to carry out a thorough investigation, without overreaching or meddling.
Share Your Thoughts