New management of Arik Airlines has appointed KPMG to undertake a forensic and diagnostic audit of the finances of the airline to ascertain the true status of its finances.
According to a statement sent by the Asset Management Corporation of Nigeria (AMCON), the review will among other objectives cover the position of assets and liabilities, and their utilisation; recording and utilisation 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. 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 statement said.
The statement noted that the whole intention was to identify what went wrong with Arik to enable the new management bring it back to full operations.
The Federal Government intervened last Thursday, February 9, in the airline’s operations following daunting complaints of huge indebtedness to various creditors and the frequent interruptions in its operations, and the concern to safety and security.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
