Under AMCON Mgt, 14 Arik Air Aircraft Worth over $1bn Allegedly Allowed to Rot Away

•EFCC investigating airline’s financial transactions

•Receiver manager insists Arik founder must negotiate with AMCON

Chinedu Eze

The Asset Management Corporation of Nigeria (AMCON) has allegedly allowed 14 aircraft worth over $1 billion bought brand new by Arik Air to rot away since it took over the company’s operations under receivership on February 9, 2017, THISDAY gathered yesterday.

This was part of the findings of the Economic and Financial Crimes Commission (EFCC), which has investigated the financial transactions of the company since it was taken over by AMCON.

THISDAY gathered from inside sources that the EFCC has invited the Receiver Manager, Mr. Kamilu Omokide, and the founder of the airline, Sir, Johnson Arumemi-Ikhide, for interrogation on the financial dealings in the company.

 THISDAY learnt that while Johnson heeded the invitation, Omokide said he would not be able to come at the time of the invitation but promised to meet EFCC at his convenience in Abuja.

Informed source gave the list of the aircraft that were allegedly destroyed by the management of AMCON under receivership to include: Boeing B737 with registration number, 5N-MJC, Boeing B737 with registration number, 5N-MJD, Boeing B737 with registration number, 5N-MJJ, Boeing B737 with registration number 5N-MJK, and Boeing 5N-MJF.

There were also Boeing aircraft painted in NG Eagle livery, which included Boeing 737 with registration number, 5N-BXV, Boeing B737 with registration number 5N-BXW and Boeing B737 with registration number, 5N-BXX. All the Boeing aircraft in Arik Air fleet are New Generation (NG) model, which are either Boeing 737-700 or 800 NGs.

 “There were also CRJ 900 aircraft that were also torn apart, which include 5N-JEC, 5N-JED and 5N-JEE. In addition to these were three Bombardier Q400, which include 5N-BKV, 5N-BKU and 5N-BKX,” the source added.

But Omokide who spoke to THISDAY denied that the aircraft were stripped and cannibalised, insisting that the equipment could be restored within a short period of time if money were made available.

The source added: “There was asset stripping, asset dissipation and the destruction of value. The aircraft parked at the Arik Air hangar have been ravaged. The engines of the aircraft have been removed; all their avionics removed.

“They also removed the cockpits of most of them. So, what you see is a mere carcass of the aircraft. These aircraft are modern aircraft, New General Boeing aircraft. The oldest among them is just 16 years and the newest is just seven years, which are CRJ 1000s.

 “There are no complete avionics. Most of them have been removed. Their dashboards have also been removed. Currently, out of 17 aircraft inherited, only three are operating as at last week and these are two Bombardier Q400 and one Boeing B737.

“The spare parts inventory before AMCON take over was about $150 million, but by last week the place was empty. There were posters and emblems of NG Eagle, which means that there was intention to close Arik Air and replace it with NG Eagle, using the Arik Air facility.

“It has also become clear that they might have just left Arik Air with those damaged aircraft, taking the others to NG Eagle. But the High Court in Lagos ruled on March 31 that all purported NG Eagle assets should revert to Arik Air because everything was funded from Arik Air, including the aircraft, the spares, and the facilities.

“There was real estate firm (name withheld) headquartered in Abuja that was not registered as financial service company, which was used by Arik Air management in Receivership to negotiate aircraft leasing agreements.

“In fact, the company purportedly entered an ACMI damp lease agreement with Arik Air-In-Receivership in a profit-sharing ratio of Arik 55 per cent and the company 45 per cent for one Unit aircraft B737-700 MSN 38127(E1-GVW).

“There was also another company (name withheld) not registered nor licensed as technical aviation services company by the Nigerian Civil Aviation Authority (NCAA), thereby unauthorized and ineligible to provide sensitive technical aviation services, which received questionable payments to the tune of N579,902,982.58 for flight operations services made to Arik Air-In-Receivership.”

Confirming these reports, a senior official in Arik Air told THISDAY that the AMCON Receiver Management could not account for missing brand-new spare engines for Q400 Dash 8 and CRJ 900 and B737 engines.

“10 new generation aircraft comprising of Dash 8 Q400, CRJ 900 and Boeing 737-800 are sitting in the Arik hangar all vandalised and stripped to the bare. All engines avionics, auxiliary power units etc. robbed from aircraft and cannot be accounted for by the management, including engines purportedly shipped to Singapore and Florida for repairs” the official said.

But the Receiver Manager, Omokide told THISDAY that the airline under his management resorted to leasing aircraft because there was no enough money to maintain the existing aircraft in the airline’s fleet, disclosing that contrary to report, he was only able to secure N4 billion credit facility for the airline, which he had repaid.

He also said that what was left for the founder of the airline, Sir Johnson Arumemi-Ikhide was to negotiate with AMCON on how it would get its airline back.

 “If Sir Arumemi-Ikhide is cooperating, there are adequate assets in Arik to rejuvenate the company; but even if you rejuvenate the company, it cannot pay the debts; unless the management goes into capital reconstruction and create space for new capital injection.

“AMCON can forgo some of the debts. I effectively managed the company. The debt can be renegotiated if he is willing to play. At the risk of being called a compromiser I can facilitate it so that Sir Johnson can cut a deal with AMCON.

“I am not an enemy of Sir Arumemi-Ikhide. I was not sent there to destroy his business. We didn’t have capital when we started. His core staff are still intact. We did not victimise his relatives who are in the airline. I have been giving him advice but he doesn’t seem to adhere to the advice.

“He is wasting time. The path he is following now will not pay. What he needs to fix Arik is in Arik.”

Omokide also reiterated that as Receiver Manager he managed the airline efficiently; otherwise, the airline would not be operating today.