‘Patently false’ – Arik Air debunks N120bn fraud allegation against AMCON official

Arik Air Limited says the N120 billion fraud allegations against its receiver manager appointed by Asset Management Corporation of Nigeria (AMCON) are “patently false”.

On Saturday, media reports had said the Economic and Financial Crimes Commission (EFCC) detained Omokide Kamilu, receiver-manager for Arik Air, over alleged misappropriation and diversion of about N120 billion.

The airline, clarifying the issues in a statement on Sunday, said Kamilu was “unjustifiably linked” to the report which presents a warped narrative of the responsibilities of the receiver manager.

According to Arik, the commission’s investigation followed a petition by Femi Falana human rights lawyer, who is a solicitor to Arik Nigeria Limited, and instigated by Arumemi Johnson, the majority shareholder in Arik, “which owes AMCON about ₦240 billion as at May 31, 2023”.

The air transport company said “Arumemi Johnson guaranteed, and therefore is by law an obligor in respect of this indebtedness and is personally liable for them”.

“The wild allegations of the misappropriation of N120 billion in the petition are manifestly and patently false and amount to no more than well-concocted lies as part of a deliberate campaign of calumny against the receiver manager intentionally presents a disingenuous and deceptive portrayal of actions which are the typical responsibilities and actions of a receiver/manager – falsely implying criminal intent,” the statement reads. 

“The reality is very different: it is instead that the receiver manager seeks only to recover for the Nigerian people, monies owed to them by this recalcitrant debtor.

“The receiver manager has been transparent in his dealings in Arik. The petition, as has been presented in the media, suggests underhand sales of assets, including a number of CRJ aircraft. These aircraft were never owned by Arik. They were simply leased by Arik.”

The airline argued that the planes were owned by JEM Leasing Limited and JEM Air Limited (both foreign companies) and financed by Export Development Canada (EDC), a crown entity of the government of Canada.

The aviation firm explained that the two foreign companies and EDC were the principal actors in the sale of the said aircraft.

Arik Air noted that the receiver manager has no influence in respect of the exercise of mortgage rights by a mortgagee (the EDC).

“This has been clearly affirmed by EDC who have unequivocally confirmed, including through diplomatic channels, that it was it and the two foreign companies that sold these assets,” the statement further reads.

“The accusations against the receiver manager are, therefore, cynical and unfounded. Also, the petition suggests a criminal intent in respect of the JV financing of certain wet lease operations.

“These JV financings were innovative ways of raising capital due to restrictions on Arik borrowing powers — as it is a company that is technically insolvent and being kept alive only by the magnanimity of AMCON, and federal aviation agencies.”

‘EFCC IS BEING USED TO OVERREACH COURTS’

On the teardown of a boeing 737-700 aircraft registered as 5N-MJI also raised in petition, it was said that the aircraft had been “abandoned and cannibalised” in Malta since 2013 by “Arik under the then leadership of Arumemi Johnson, and years before the receivership commenced”.

“This was a professionally taken decision on an aircraft that was beyond economic repairs (BER) and stood the chance of being sent to the graveyard by authorities of the relevant airport in Malta,” the statement added.

“The pre-teardown valuation of the aircraft by McLarens (a foremost aircraft valuation company) [stood] at USD1.5 million. This was, however, seized by Lufthansa Technik over Arik’s indebtedness incurred pre-receivership.

“All patriotic Nigerians should be deeply concerned by the influence peddling of a recalcitrant debtor to instigate security agencies against a “public-interest” receivership. The desperate resort by Johnson to all forms of bullying, “shake-down attempts” and other underhand tactics are pitiful.

“The tactics have been deployed, and are still being deployed, in contempt of existing court orders, and in respect of matters that are currently before various courts, and it is worrisome that the EFCC is being sought to be used to overreach the courts which are seized of these matters.

“This should not be allowed to happen or, to the extent that they have already happened, to continue to happen, as it represents forum shopping in respect of issues already before the relevant courts.”

TheCable had reported that earlier in the month, Arik Air had said it removed the CRJ 1000 aircraft from its fleet, due to the decision of JEM Leasing Limited, the owners of the CRJ 1000, and its financiers to sell the aircraft.

You can read more about the dispute here, and here.