Asset Management Corporation of Nigeria (AMCON) has appointed Klynveld Peat Marwick Goerdeler (KPMG) to undertake a forensic audit of the finances of Arik Air to ascertain its true financial status.
In a statement issued in Lagos today, AMCON said the review will cover the position of assets and liabilities and their utilization, recording and utilization of loans, propriety of third party transactions; fraud controls over procure to pay, agents and business partners and financial reporting as well as the airline’s financial position as at January 31, 2017.
“We have hired KPMG to look into the financials of Arik with a tooth comb and advise us with verifiable facts on what went wrong with the airline. We need to do that because the outcome will help us plug the loopholes and stabilise the airline,” the statement added. The whole intention is to identify what went wrong with Arik to enable the new management to bring it back to full operations,” said AMCON.
The corporation said the report is expected within 12 weeks.
It would be recalled that AMCON took over the management of Arik Air that had been struggling with debt overhang.
It appointed Capt. Roy Ukpebo Ilegbodu as the managing director under the receivership of Mr. Seyi Opasanya (SAN).
It said the airline “has been going through difficult times that are attributable to its bad corporate governance, erratic operational challenges, inability to pay staff salaries and heavy debt burden among other issues, which led to the call for authorities in the country to intervene before Arik goes under like many before it.”