For transparency and smooth take-over, the new management of Arik Airlines has appointed KPMG, world-class financial experts to undertake a forensic and diagnostic audit of the finances of the airline to ascertain the its true financial status.
The airline was taken over last week by the Federal Government under the auspices of Asset Management Corporation of Nigeria (AMCON) as a result of an alleged debt profile of over N300billion.
The new management in an official statement issued yesterday, stated that the review will among other objectives 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 (‘PtP’), Agents and Business Partners and Financial Reporting and Arik Airline’s financial position as at January 31, 2017.
According to the statement, the report is expected to be delivered within 12 weeks.
“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 whole intention is to identify what went wrong with Arik to enable the new management to bring it back to full operations””, “the statement added.
