Arik Air Denies Allegations of N120bn Fund Diversion, Labels Accusations as False, Part of a Smear Campaign

In a recent development, Arik Air Limited (in receivership) has vehemently refuted allegations of misappropriation of funds amounting to N120 billion. The claims were made against the Receiver Manager appointed by the Assets Management Corporation of Nigeria for Arik Air, Mr Kamilu Omokide, who had reportedly been detained by the Economic and Financial Crimes Commission over the alleged diversion of funds.

Denouncing the accusations, Arik Air has dismissed the reports as nothing more than well-crafted falsehoods and part of a deliberate campaign to tarnish the reputation of the Receiver Manager. The allegations of misappropriation were found in a petition filed by Mr Femi Falana, according to a statement released by SY & T Communications Limited, the media consultancy firm representing the airline.

The statement further revealed that Sir Arumemi Johnson, the majority shareholder of Arik Air, is the true subject of the investigation. As of May 31, 2023, Johnson guarantees the outstanding N240 billion debt owed by Arik to AMCON and, therefore, is an obligor in respect of this indebtedness, making him personally liable.

Addressing the recent media reports, the statement issued on behalf of Arik Air (in receivership) emphasized that the allegations of N120 billion misappropriation in the petition are manifestly false and amount to nothing more than a concocted ploy to impede the ongoing receivership in Arik Air. Furthermore, the claims in the petition do not even add up to N120 billion, rendering them baseless and fabricated.

The statement clarified that the primary objective of the Receiver Manager is to recover the funds owed to the Nigerian people by the debtor, and he has pledged full cooperation with the EFCC in this regard. Arik Air also challenged the allegations of deceptive asset sales, including CRJ aircraft, stating that these accusations against the receiver manager lack foundation. Additionally, it was explained that the innovative JV financing of certain wet lease operations, as a means to raise capital, carries no criminal intent.

Regarding the teardown of a Boeing 737-700 aircraft, registered as 5N-MJI, Arik Air defended the decision as a professionally made choice on an aircraft that was beyond economic repair. The aircraft had been abandoned and cannibalized in Malta since 2013, predating the receivership period. The receiver manager ensured a proper valuation of the aircraft by McLarens, a renowned aircraft valuation company, which estimated its value at $1.5 million. However, the aircraft was seized by Lufthansa Technik due to Arik Air’s pre-receivership debt.

The receiver manager remains resolute in defending his hard-earned integrity and rejects baseless allegations aimed at tarnishing his reputation. He and the staff of Arik Air Limited (in receivership) are committed to offering maximum cooperation to the EFCC in the investigation.