By Louis Ibah

The Asset Management Company of Nigeria (AMCON) has hired KPMG, world-class financial experts to undertake a forensic and diagnostic audit of the finances of the airline to ascertain the true status of its finances.

“We have hired KPMG to look into the financials of Arik with a tooth comb and advise us with verifiable facts on what went wrong with the airline. We need to do that because the outcome will help us plug the loopholes and stabilise the airline,” the statement by AMCON said on Monday. “The whole intention is to identify what went wrong with Arik to enable the new management to bring it back to full operations,” the statement added.

Related News

According to the statement, the review will among other objectives cover the position of assets and liabilities, and their utilisation; recording and utilisation of loans, propriety of third party transactions; fraud controls over Procure to Pay (‘PtP’), Agents and Business Partners and Financial Reporting and Arik Airline’s financial position as at January 31, 2017. The report is expected to be delivered within 12 weeks.

Recall that last Thursday, AMCON citing daunting complaints of huge indebtedness of the airline to various creditors estimated at over N300billioon, indebtedness to staff and the frequent interruptions in its operations, and the concern for safety and security took over the operations of the airline through a court order. The takeover came barely 24 hours after the Economic and Financial Crimes Commission (EFCC) quizzed Arik Chairman, Mr. Joseph Arumemi-Ikhide, to shed more light on debt as well as alleged mismanagement of incomes and loans by the airline in recent years. On Sunday, the new Chief Executive Officer of Arik Airlines, Capt. Roy Ukpebo Ilegbodu, said it would require the injection of about N10billion to bring it back to optimal operation. Arik Air’s suspended board and management have however vowed to challenge AMCON’s action in court.

“The federal government intervened last Thursday February 9, 2017 in the airline following