Arik Air : Why is AMCON Jittery ....Our story by shareholders

 Arik Air :  Why is AMCON Jittery

....Our story by shareholders 

Shareholders of Arik Air have faulted claims by the Asset Management Corporation of Nigeria (AMCON), that the owner of the carrier is indebted to  the tune of over N445 billion.

The shareholders accused AMCON of running a smear campaign against the airline owner instead of giving account of how it has mismanaged the carrier since it forcefully took it over eight years ago.

In a statement by its Media Office/ Spokesperson,  Godwin Aideloje, the shareholders said AMCON embarked on a smear campaign in order to mislead the public through manipulative propaganda and unsubstantiated claims.

Such a move, the shareholders said, amounted to AMCON's recklessness, lack of transparency and dishonesty.

The statement reads:" The recent statement by the spokesperson of AMCON, Mr Jude Nwauzor is yet another example of AMCON’s habitual disingenuous misinformation strategy is not surprising that AMCON launched this disinformation campaign since the Federal Government filed a 6 count  charge against  Mr. Ahmed Kuru (former AMCON – MD), Mr. Kamilu Alaba Omokide ( Receiver Manager- Arik), Capt. Roy Ilegbodu (CEO – Arik in Receivership), Union Bank Plc, and Super Bravo Limited  at  the Special Offences Court of the Lagos High Court  over the Arik Air receivership with its   upcoming  arraignment on Monday January 20, 2025. 

"This is in addition to the 90 day pre- action notice  served in December 2024 by the shareholders of Arik Air Limited for a legal action to hold AMCON to account for its mismanagement and destruction of the airline. It is not surprising AMCON has resumed its campaign of calumny, rage and disinformation on which it had thrived for about  eight years of forceful receivership of Arik Air.

"Unlike AMCON, we will restrain ourselves from issues before the Court, as advised by our lawyers.

The shareholders of Arik Air, also faulted the account given by AMCON on the airline's fleet , describing it as a gross misrepresentation.

The statement reads :" The “storytelling” inventory presented by AMCON through Mr. Jude Nwauzor at its press conference is a fictitious and gross misrepresentation of Arik Air fleet, it is laughable at best. The so-called inventory is a day dream creation as it was not signed by both parties. This is due to the fact that the receivership was forceful with the use of fierce gun toting policemen.

"Thus, the inventory AMCON claimed at the press conference as being that of Arik as at  February 9,  2019 is deliberate falsehood, riddled with grave inaccuracies.

"However, now that AMCON announced after  eight years of receivership that it inherited 30 aircraft, we demand they account to Nigerians and the travelling public, how they have mismanaged 27 aircraft to  only  three  flying as of today. At least the travelling public can testify to the substantially reduced route network and operations of the airline."

It further reads : " AMCON’s claim that Arik Air was insolvent and mismanaged prior to the receivership according to a purported PwC report is false and a deliberate attempt to obfuscate the facts. We wish to state that the 2014 audited financial reports were completed and duly signed by the Arik management, while the 2015 management accounts were concluded and forwarded to PwC by the management for auditing sometime in 2016. Please recall that AMCON forcefully took over Arik on 9 February 2017 and interrupted the process.

"However, the Federal High Court judgement of 31 March 2023  Court ordered AMCON and its Receiver Manager to file a statement of affairs and audited financial reports with the Corporate Affairs Commission (CAC)  for the period of receivership to the date of judgement within 14 days. Our lawyers confirmed that there were no filings at the CAC within the period ordered by the Court. "However , we noticed that rather than obey the judgement, the AMCON appointed Receiver Manager uploaded purported audited accounts on the Arik Air website. 

"The uploaded audited account dated and signed in 2019 ( clear 2 years into the receivership)by Mr. Kamilu Omokide( Arik Receiver Manager) and Capt. Roy Ilegbodu ( CEO – Arik in Receivership) falsely stated that Arik was in receivership in 2015 and 2016. 

"This puts a lie to Mr. Jude Nwauzor’ s statement that the financial audit was conducted under Arik legacy management.

"On noticing these malicious discrepancies and other manipulated figures in the accounts, the legacy management petitioned the Financial Reporting Council.

" It is on record that AMCON and its receiver manager failed to  appear at the several  investigative hearings convened by the Financial Reporting Council to defend the  malicious restatement of the 2014 audited financial reports  and the false presentation of Arik audited financial reports for 2015/2016).

It is instructive to note the new version of the reason why AMCON took over Arik is  “government mandate”. What a  preposterous statement from a federal government employee! This is a gross misrepresentation of the Federal Government as being in the business of arbitrary takeover of private businesses with a stroke of pen. This is indeed a disservice to the Government and people of Nigeria by AMCON

"We wish to state again that before the forceful takeover, Arik Air was recognized for its operational excellence and significant contributions to Nigeria’s aviation sector. Contrary to AMCON’s claims, the airline was meeting its financial obligations, as evidenced by remarks and recognition by global institutions; recently Afreximbank acknowledged legacy Arik  as a model in Africa at a just concluded International Aircraft Leasing & Finance Conference in Ireland Dublin a few days ago."

On the claims of indebtedness, the shareholders said : " This is a matter before the Court, Unlike AMCON, who have no respect for the courts, we will not resort to sub judicial remarks. We will not join the desperate attempt by AMCON to overreach the Courts and desecrate our justice system.

"The fictitious claim of N455B as alleged Arik Air indebtedness to AMCON by  Mr. Jude Nwauzor  is a fallacy. It seems clear that AMCON is invested in dubious storytelling and falsehoods. This allegation is defeated by AMCON’s claim in its Suit No. FHC/L/CS/175/17 with which it took Arik Air into receivership and gained full control and management of operations, assets and liabilities of the airline.

"It is deeply troubling that AMCON, a federal government agency that recently called on the Courts through its Managing Director to come to its rescue even when disobeying the orders of the courts  has  brazenly resorted  to issue public statements about matters already before the courts Such actions not only undermine the integrity of the judicial process but amounts to subtle coercion of the public and the courts.

"The operational failures of AMCON and its appointed receiver management for Arik Air   have been laid bare for all to see. The so-called inventory of Arik’s assets, which AMCON touts as evidence of the airline’s insolvency, is nothing more than a poorly crafted attempt to deflect attention from their inability to run the airline effectively. The travelling public can testify to the over 85%   closure of domestic routes, total closure of all regional and international routes, mismanagement and loss of   highly sought after London Heathrow and JFK New York slots, a drastic reduction in fleet size, and the erosion of goodwill built over years of hard work and dedication by Arik Air’s original management and staff.

"It is not surprising that the new AMCON executive management doubled as Receiver Managers and embarked on    several sight-seeing world travels at cost to taxpayers, purportedly claiming to shop for solutions for Arik issues."

The shareholders went on : " 

It is the height of dishonesty that Mr. Nwauzor failed to mention that under the Arik Air receivership by AMCON the followings occurred,  1No.Boeing737-800NG was seized in 2023 ( 6 years into the receivership) in Lithuania for failure of AMCON to meet the airlines obligations, 1No, Boeing 737-700NG was abandoned in Malta and has now been butchered and traded in grey market (2023),  2Nos Boeing 737-700NG abandoned in bad conditions without engines in Johannesburg South Africa) and Addis Ababa( Ethiopia) by the AMCON appointed Receiver Manager. This is in addition to about 24 aircraft engines that were shipped abroad by the Receiver Managers in 2019 for maintenance and are yet to return. Another set of 3 Nos new aircraft spare aircraft engines, huge spare parts inventory and ground handling equipment have disappeared and without being accounted for under AMCON receivership.

"In addition, Mr. Jude Nwauzor also chose to ignore the organized rape of the airline by AMCON to bankrupt in order to proclaim insolvency agenda.  Unfortunately the plan executed by Mr. Ahmed Kuru led AMCON through a CBN  494th minutes of Governors Committee Meeting of 13 and 15 February 2017 where Arik Air receivership was “organized” and concluded  like a beer parlor gossip. Also the   directive through a CBN letter of 15 March 2017 that all receiving banks of Arik tickets sales revenues should  discontinue servicing and meeting all  ongoing obligations under the AMCON managed Arik Air in "Receivership are now known to all. Suffice to state that Arik forceful takeover was all “arranged” by the Mr. Ahmed Kuru led AMCON and Mr. Godwin Emefiele led the Central Bank of Nigeria.

Unfortunately, Mr. Jude Nwauzor's desperation and proclamation of insolvency amounts to a celebration of hypocrisy and calling Nigerians fools. Otherwise how can a public servant arrogantly threaten liquidation of a company that the government purportedly asked it to rescue without being accountable."

In setting the records straight , the shareholders said : " Arik Air’s Financial Obligations: AMCON’s narrative conveniently ignores the fact   that Arik Air Limited did not default in its repayment obligations but AMCON created a receivership to take over the airline which neither served the interest of the airline nor the country including the highly trained professional staff whose opportunity to soar in the professions have been destroyed by AMCON receivership.

 "However, the “new” justification at the press conference by Mr. Nwauzor that the federal government begged AMCON to take over  Arik Air also explains lack of due process which is  characteristic of  AMCON’s leadership under Mr. Ahmed Kuru.

 "Receivership Justification: AMCON’s portrayal of Arik’s financial state prior to the receivership is misleading. Its purported intervention, rather than stabilizing the company (valued at $3.7b by Deloitte of London) has resulted in wanton destruction of value and opportunities for Nigeria.

Recent London Court Judgement Against Arik in Receivership

It is surprising that, Mr. Jude Nwauzor, the AMCON storyteller is so dishonest that he could not raise the issues of the recent $400 thousand London Court judgement against Arik In Receivership which had been filed at the Federal High Court, Lagos in Suit No. FHC/L/CP/1639/2024 for reciprocal enforcement in Nigeria.

"AMCON and Arik in Receivership embarrassed Nigeria when it failed to pay for aircraft wet lease that it embarked upon after it destroyed the Arik Air fleet of new generation aircraft and depleted spare parts inventory of over $200M after about  three  years into the receivership and reckless unaccountable sweating of the Arik Air aircraft and other assets. The wet lease agreement was signed by Mr. Kamilu Omokide ( Receiver Manager) and Capt. Roy Ilegbodu( CEO- Arik in Receivership) IN 2019 ."

On the alleged indebtedness of Ojemaie Farms Limited , Ojemaie Investment Limited and Rockson Engineering Nigeria Limited, the shareholders accused AMCON of falsehood.

They said : "  It surprising that Mr. Jude Nwauzor AMCON storyteller, will resort to false allegations on an international press conference where he alleged   Ojemaie Farms and Ojemaie Investment are indebtedness to AMCON. Contrary to his claim, Neither Ojemaie Farms nor Ojemaie Investments Limited is indebted to AMCON. 

"This issue has been settled in a court affirmed settlement signed by the AMCON management and Ojemaie Farms and Ojemaie Investment in Suit No. FHC/L/CS 1828/2015.  What a pity that Mr. Nwauzor made such false statements on issues settled by law courts over  seven  years ago.

In the case of Rockson Engineering Limited, which is before the Federal High Court in Suit No FHC/L/CS 1129/2019 for determination. AMCON has a claim of N63B against Rockson Engineering Nigeria arising from over  three years  delayed payments for power projects by the Federal Government. 

"This non servicing of letters of credit issued by Intercontinental Bank Plc (Mr. Gbenga  Alade, the current MD of AMCON superintended upon these letters of credit as an Executive Director of Intercontinental Bank at the time,) However, upon the funding of the letters of credit by the federal government, the Bank collected all the funds and stated that the funds was insufficient to meet the principal, interest and default charges. 

"Please note the power equipment arrived Nigeria well ahead before the funding of the letters of credit by the Federal Government. Please note that AMCON is claiming N63B Court while Rockson Engineering Nigeria has a counterclaim of $700M against AMCON. It is sad that AMCON, held a press conference to misinform the public and overreach the courts, in its desperate attempt to cover the malfeasance that have been perpetrated in one of its several receiverships.

"We urge Mr. Nwauzor to acquiesce himself to facts and correctly understand subjects before descending into the arena to discuss them. Sadly, the power generation deficit in Nigeria today arose from AMCON meddling in power projects being handled by Rockson Engineering Nigeria Limited , these projects were at about 80 percent  completion before AMCON led by Mr. Ahmed Kuru meddled with the projects and “created” receivership ( to use his words in one of his correspondences )  , leading to distortion in the project plan and abandonment for the past  seven  years

"AMCON’s press conference is yet another desperate attempt to cover a 9- month pregnancy with a finger. AMCON should desist from falsehood peddling and be accountable.

"We wish to remind AMCON that” lies have short legs, it  cannot run far."