Nigerian Flight Deck Travel and Business Reportage
AUDITING firm, KPMG, hired to look into the books of Arik Air is said to have uncovered newer debts from the airline’s previous management but is yet to complete its audit of the airline and so has not put a figure to the total debts, a source has told Nigerianfligfhtdeck.com.
The media has been awash with an extra N20.5billiondebt uncovered by the auditors however, the source has said that although newer debts have been uncovered the amount is yet to be ascertained as the audit is still ongoing.
He explained to our reporter that KPMG was supposed to have completed the audit a month ago but due to lack of transparency and disclosure from the former managers of the airline, the audit has been extended.
“In truth, KPMG has discovered more liabilities of the airline but is yet to complete the audit so it can provide the entire figure plus the previous management has refused to cooperate and that is why it is taking a while.”
Following takeover of Arik Airline by the Asset Management Corporation of Nigeria (AMCON), with appointment of Receiver, Mr. Oluseye Opasanya, the need for further check on its financial records led to appointing KPMG.
It could be recalled that new management of the airline had on February 2017 set out to give Arik Airline a new start, with a forensic and diagnostic audit of the finances of the airline to ascertain the true state of things, few months after it came under receivership.
AMCON had said that the review would among, other things cover assets and liabilities and their utilization; recording and utilization of loans; and propriety of third-party transactions.
It will also introduce fraud controls mechanism over procurement, agents and business partners and financial reporting, and airline’s financial position as of January 31, 2017.
AMCON cannot absolve itself from the financial mess that Arik got itself into. Twice before Arik got the federal government intervention fund, AMCON had helped Arik to reschedule or renegotiate loans of about N260bn with about 7 creditors banks. AMCON never saw anything wrong in a private company of single ownership owing that much. How much would a public enterprise owe banks before AMCON would take it over? Trillion? Some private companies, AMCON and NSE need to learn some lessons from Dangote and find out how he gets all its companies to the capital market within 2 years he establishes any.