As part of efforts to ascertain the true status of the finances of embattled Arik Air, the new management of the airlines has appointed KPMG, world-class financial experts to undertake a forensic and diagnostic audit of the finances
A statement by the airline stated that the review would 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.
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 statement said.
The management said that the intention is to identify what went wrong with Arik to enable the new management to bring it back to full operations.
Recalled that the Federal Government intervened using the Assets Management Corporation of Nigeria(AMCON)last Thursday February 9, 2017 in the airline following daunting complaints of huge indebtedness of the airline to various creditors and the frequent interruptions in its operations, and the concern to safety and security