•Say allegations of mismanagement false
By Chinelo Obogo
Arik shareholders have accused the managing director of Assets Management Corporation of Nigeria (AMCON), Ahmed Kuru, of making false and misleading statements over the state of affairs of the airline and have challenged him to provide proof and records of inherited indebtedness.
At a press briefing in Lagos last week, Kuru, said the airline which has been under AMCON’s receivership was heavily in debt before it was taken over and that according to security reports, the firm would not have lasted for longer than two weeks if the Federal Government had not intervened. He however said that AMCON is ready to negotiate with the founder, Sir Johnson Arumemi-Ikide, on returning the airline to him.
However, in a statement signed on September 20, 2023, the shareholders said that contrary to Kuru’s claims, the airline was not in default of any of its financial lease and operating loan obligations to any bank.
The statement reads: “While we wish to refrain from media assaults and trials of persons as Kuru has done repeatedly in the past six years, we are beholden with the moral duty to set the records straight in order to expose the desperate attempt to misinform Nigerians and distort the facts of the monumental destruction of Arik by AMCON and its receiver manager(s).
“We state unequivocally that as at February 9, 2017 when AMCON forced Arik Air into the receivership management of Mr. Oluseye Opasanya, the airline was not in default of any of its financial lease and operating loan obligations to any bank, including the European Credit Agency (ECA)/HSBC facility.
“Suffice it to state that with the 2010 banking reforms, the CBN directed the conversion of all local bank guarantees of foreign loans from off-balance sheet to on-balance sheet. Thus, with this CBN directive, AMCON took over the European Credit Agency (ECA)/HSBC finance facility supported by the local guarantee of Union Bank plc.
“AMCON renegotiated the facility with Union Bank from single digit to double digit interest rate without involving Arik Air management. This was done arbitrarily without recourse to the fact that Arik Air had been servicing that facility without default for about three years.
“Kuru exposed the depth of his ignorance by claiming Arik owned only seven aircraft. For the avoidance of doubt, we hereby state categorically that Arik had 17 serviceable and operational aircraft and two aircraft parked for minor maintenance when AMCON took over on February 9, 2017. Suffice it to state that Arik’s takeover did not follow the due process of taking inventories of assets, liabilities etc and proper hand-over.
“Arik Air under AMCON’s receivership as at September 20, 2023 managed by Kamilu Omokide, operates only two aircraft. The Arik hangar in Lagos is now a static display of 14 abandoned new generation aircraft while the rest have either been cut to pieces, sold, and shipped out of the country.
“The spare parts inventory of Arik valued at over $150 million has been significantly depleted to less than $15 million. About 80% of domestic routes have been shut down while all African and intercontinental routes of London , New York, etc have all been shut down completely after three months of operation by AMCON.”
Contrary to Kuru’s uninformed statements claiming engine swaps on Arik aircraft, Arik Air fleet comprises of new generation aircraft with OEM engines/warranties that do not require any form of engine swaps.”
On indebtedness, the shareholders said: “Kuru should cross check his facts as his agency never filed the sum of N240 billion, in its claim of the airline’s indebtedness in any court. This is patently false, contradictory and misleading. We ask him to consult his lawyers so as to spare the public the needless overload of his misinformation. It is an incontrovertible fact that Arik had no issues with aircraft lessors and financiers, and neither was any aircraft impounded/seized anywhere in the world until mid-2019 well into the receivership by AMCON when the lessors were not paid as directed by the CBN letter of 14 March 2017 to all banks.”
On NG Eagle, they said: “The incorporation documents obtained from the Corporate Affairs Commission’s records shows that NG Eagle was incorporated on 11th July 2019 with an AMCON’s employee, Mr Kamilu Omokide (Arik Receiver Manager) as Shareholder/Director and AMCON as second shareholder with other AMCON employees as directors in a breach of fiduciary duties to Arik by Kamilu Omikide. Kuru also did not tell Nigerians that, the registration, establishment, and expenses for the NG Eagle AOC was funded from Arik sales proceeds.
“The sale transaction of NG Eagle is another breach of public procurement/assets disposal protocols and was done in a hush hush arrangement on February 20, 2023, after a date had been reserved for judgment in the matter of Arik Shareholders Vs Kamilu Omokide, AMCON, NG Eagle & Ors at the Federal High Court Lagos. The court recently ruled that the set-up of NG Eagle and transfer of assets of Arik Air to the said NG Eagle is illegal, null, and void. The court also ordered that AMCON, and its receiver manager to file audited accounts of Arik Air from February 9, 2017 with the Corporate Affairs Commission within 14 days of its judgement on March 31, 2023. Though AMCON used the courts exparte order to take-over Arik, it disobeyed the same courts when ordered to file audited accounts.
“The fact remains that AMCON forcefully took over performing loans and must be made to account for its stewardship. Arik shareholders hereby challenge AMCON’s MD and the banks he claimed are owed by Arik Air to provide proof, records of the indebtedness, default, and demand letters from such banks. It is time to put a stop AMCON’s deception and misinformation to the Government and people of Nigeria. It is unfortunate that Kuru’s eight-year tenure as the MD of AMCON in a national role that should be developmental turned-out to be a season of disruption of businesses. It caused heavy job losses, capital and businesses capacity deficits and unprecedented economic setbacks through some unjustifiable receiverships and mismanagement caused by AMCON’s arbitrariness and deliberate misinformation to government. We, the shareholders of Arik are willing and ready for an open dialogue with AMCON in the presence of the relevant investigative authorities. We come to equity with clean hands and ask that AMCON do the same.”