Tag Archives: AMCON

AMCON condemns workers’ union over Arik airline shutdown

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The Asset Management Company of Nigeria, AMCON, has condemned the actions of aviation unionists who staged a protest at the headquarters of Arik Air Thursday.

Jude Nwauzor, AMCON’s Head of Corporate Communications, while speaking during a telephone interview with PREMIUM TIMES Thursday, said the disruption of activities at the airline’s headquarters was uncalled for.

Aviation unions had in the early hours of Thursday shut down the operations of Arik Air.

The unions, which include the National Union of Air Transport Employees, Air Transport Services Senior Staff Association of Nigeria and the National Association of Aircraft Pilots and Engineers, on Wednesday threatened to ground the airline following Arik management’s alleged failure to reinstate its sacked members.

The protesters also disclosed that the shutdown was because of the airline’s breach of the rights of workers and its indebtedness to aviation parastatals.

Olayinka Abioye, General Secretary of NUATE, told PREMIUM TIMES that the takeover of Arik airline by the Asset Management Corporation of Nigeria, AMCON, has worsened the crisis facing the airline.

“In fact, taking over of Arik by AMCON has seemingly worsened the situation because we expected that immediately AMCON came, they would do an appraisal of issues and find out how to resolve them,” he said.

But Mr. Nwauzor, in his reaction, said the union member were not representing staff of the airline, noting that staff of Arik air had made it known that they were not interested in the union’s activities.

“The staff said they are not interested in the union but they want to coax them. You will notice that even at the protest ground, there are staff members who were expressing their displeasure at what was going on,” he said.

“The position of AMCON isn’t different from that of the management of Arik. The airline is not grounded as airplanes are operating as scheduled. Operation is disrupted at the entrance of the airline’s headquarters but it doesn’t mean work isn’t going on inside the building,” he added.

“The unions are just constituting nuisance and disturbing public peace.”

The AMCON spokesperson, however, did not comment on other demands by the union leaders.

On February 9, the Asset Management Corporation of Nigeria took over Arik as a result of the airline’s bad debt to the company and other creditors.

AMCON, thereafter, appointed Roy Ilegbodu as manager of the airline and Oluseye Opasanya as the airline’s receiver manager.

 

Source: Premium Times

Just In: AMCON names new buyers of Keystone Bank

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The Asset Management Corporation of Nigeria, AMCON, has announced Sigma Golf
Nigeria Limited and Riverbank Investment Resources Limited (the Sigma Golf-Riverbank Consortium) as the new investors in Keystone Bank.

The announcement came amid controversies surrounding the sale of the bank, with AMCON alleged to be acting in breach of extant takeover provisions.

AMCON, in a statement on Monday, said the announcement is in relation to the acquisition of the entire issued and fully paid up ordinary shares of the bank.

This, AMCON said, follows the receipt of the necessary regulatory approvals from the Central Bank of Nigeria, CBN, and the Securities and Exchange Commission, SEC.

The completion of the transaction is subject to the fulfilment of the
conditions precedent as stated in the Share Sale and Purchase Agreement executed between AMCON and the consortium, the corporation added.

Earlier in November 2016, some senior officials of AMCON had voiced strong opposition to the planned sale of Keystone Bank Ltd.

The disturbed officials specifically alleged that Ahmed Kuru, the chairman of AMCON, had concluded plans to hand over Keystone to a coalition of powerful Northern interests, while disregarding extant takeover provisions of AMCON in the process.

PREMIUM TIMES had gathered that Sigma Pensions Limited, a firm linked to former Vice President Atiku Abubakar and Umar Modibbo, might emerge the new owner of Keystone Bank with its nearly 160 branches.

The two influential Nigerians were allegedly being represented by the
firm which our sources said did not participate in the bidding process, in a clear contradiction of basic public asset sale requirements.

After a commercial was placed for the bidding process by AMCON, 13 companies had submitted their expression of interests but the companies did not include the firm which AMCON was set to sell the bank to.

PREMIUM TIMES findings revealed that the deal could also see Nigerian taxpayers lose billions of naira if allowed to stand. This is because AMCON was reportedly in talks to sell the bank for about N2.1 billion, representing only a fraction of the approximately N100 billion that AMCON paid to purchase the bank’s bad debts in 2011.

Findings also indicated that some of the companies that participated in the bidding process offered more than the amount and had core banking expertise.

The Keystone Bank, previously known as Bank PHB, was among the three banks nationalised by the CBN in 2011, after failing a stress test conducted by the apex bank.

The top AMCON officials, who spoke strictly on the condition of anonymity, said Mr. Kuru sidestepped laid down requirements for asset sale to ensure Keystone is ceded to his cronies.

“It is very clear that all caution was thrown to the wind as a result of a grand plan to disqualify very strong and reputable intended buyers in order to allow the cronies and business associates of the Managing Director take over the bank,” a senior AMCON official had said.

They had also disclosed that, since the opinions being widely held across the country were that the president had a sectional agenda, the outcome of the sale would put the conjectures to test.

“It is an open secret within the banking sector in Nigeria that the sale was arranged for this powerful northern group whose promoters do not have the required banking experience, thereby raising questions about the supposed independence of the international advisers of AMCON in the sale of Keystone,” one official had said.

When contacted in November, Mr. Atiku’s spokesperson, Paul Ibe, had said he had no prior knowledge of his principal’s involvement in the controversial transaction, but still suggested that the opposition to his principal’s role by some AMCON officials might have been politically-motivated.

“I am not aware if his Excellency is interested or is involved in Keystone Bank. But even if he is, does that disqualify him? Is it because he’s a former Vice President and an APC chieftain? Hasn’t he run businesses successfully? Created jobs? Delivered dividends to shareholders? Paid taxes?

“Who are those internally? Who are the people? Is it politicians who are mischief makers hiding under the cover of internal people?” Mr. Ibe had said.?

But AMCON, in its statement on Monday, said the emergence of the Sigma
Golf-Riverbank Consortium resulted from a rigorous and competitive bidding process, which was coordinated for AMCON by Citibank Nigeria Limited, its affiliates and FBN Capital (joint financial advisers), and Banwo & Ighodalo, and Crosswrock Law (joint legal advisers).

Sigma Golf Nigeria Limited and Riverbank Investment Resources, the corporation stated, were entities set up by local investors, adding that the process for the sale of the bank started with interest shown by 18 parties cutting across local and international investors.

Keystone Bank was incorporated by the Nigerian Deposit Insurance Corporation on August 3, 2011 following the revocation of the license of Bank PHB by the CBN.

As of April 2016, Keystone Bank had a staff strength of 1,753 employees, network of 154 branches, nine cash centres and 315 Automated Teller Machines.

 

Source: Premium Times

Debtor firms risk losing assets as government moves to remodel AMCON

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A pending proposal to adopt a private sector-led ‘bad debt’ company is raising concerns on sustainability, cost management and social concerns. This comes in the wake of the worsening non-performing loans (NPLs) in the banking industry aided by the prevailing recession in the country.

The fears are heightened by faltering financial plans in public and corporate establishments and anticipated unveiling of modalities for the commencement of the second phase of the Asset Management Company of Nigeria (AMCON).

This is because, AMCON as it is can only bark but not bite, as the enabling law does not permit it to acquire the assets of debtor companies, unlike its peers in other climes where they are empowered from day one to take over such assets.

On the rationale behind the new move, the Nigerian Deposit Insurance Corporation (NDIC) said it is to forestall in the future a situation whereby public funds are deployed to salvage failed institutions.

The Managing Director and Chief Executive Officer of NDIC, Alhaji Umar Ibrahim, who also confirmed the commission of a study in conjunction with the Central Bank of Nigeria (CBN) in this respect, noted that the proposed arrangement is in tune with global best practice. He added that the new plan is further necessitated by the need to streamline AMCON according to its initial concept of a joint venture between the private and public sectors.

As at December last year, 25 deposit money banks (DMBs) had a total loan portfolio of N18.53 trillion, out of which N1.85 trillion or 10 per cent were NPLs, a figure far above the regulatory threshold of five per cent.

Also, of the 978 micro finance banks (MFBs) with total deposit liabilities of N158 billion and total loans and advances amounting to N195 billion, about N87.75 billion was NPLs.

Again, N51.7 billion were dormant loans, total deposit liabilities of N69 billion and total loan portfolio of N94 billion belonging to the 42 primary mortgage banks (PMBs) during the period under review.

But Ibrahim indicated that more than 40 per cent of this category of loan resulted from insider abuse and poor corporate governance, harping on the imperativeness of a robust debt recovery system.

The Executive Director, Finance, BGL Capital, Femi Ademola, confirmed that AMCON was scripted to run as a private business with a mix of economic and social objectives.

His words: “The idea of AMCON II may be a good one, especially if it can be solely private sector-led, with a little of government support to make investment attractive.”

The Lead Director, Centre for Social Justice, Eze Onyekpere, said the move would lighten the burden on the public. But he raised the concern that private sector funds are mostly driven by a profit motive.

He said: “Any such proposal should weigh the cost of funds and how it affects the entire exercise in terms of achieving its purpose.” Also, an Abuja-based development consultant, Jide Ojo, commended the arrangement, adding that the current one had only recorded a limited success.

According to him, the legal framework to facilitate the smooth run of the new phase and convince the private sector to key into the scheme remains a major challenge. He urged detailed background checks to ensure that requisite managerial ability, funding and overall competence are not compromised.

In his remarks, a Director at Union Capital Markets Limited, Egie Akpata, acknowledged that the banking system had been seriously weighed down by tax and provisioning, advising that any measure to lessen the burden should be carefully considered.

He went on: “It is worth noting that the current AMCON is being repaid by tax on assets of banks. So, the current operations are partly funded by the private sector in effect.”

Meanwhile, the Federal Government has initiated an Asset Tracking and Management Project (ATM Project) to enable it to locate, identify, assess and evaluate all of its moveable and immoveable assets.

The Minister of Finance, Mrs. Kemi Adeosun, who made the disclosure in Abuja, said a central asset register would be opened in her ministry to record actual quantity, value, condition and location of all government’s capital assets.

The move is coming on the heels of a series of discovery of government’s assets held and/or converted by former public officers. Under the International Public Sector Reporting Standard (IPSAS), government is to record both its assets and liabilities.

 

Source: The Guardian

Apart from N300 billion AMCON debt, Arik owes another N25 billion – Official

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The Asset Management Corporation of Nigeria, AMCON, on Monday said Arik Air, under its previous management, owed the International Air Transport Association, IATA, $78 million (about N25 billion).

Simon Tumba, Media Consultant to Arik Air, gave the figure while speaking with journalists in Lagos.

The airline was on February 9 taken over by the Federal Government under the auspices of AMCON as a result of its huge debt profile.

AMCON appointed Roy Ilegbodu, a veteran aviation expert, to manage the airline under the receivership of Oluseye Opasanya, a Senior Advocate of Nigeria.

Mr. Tumba said the debt was for all aviation services provided under the platform of IATA, which recently suspended the airline from its Billing and Settlement Plan (BSP) and Cargo Account Settlement System (CASS).

“Arik Air under the former management was owing everywhere they operated. Apart from the over N300 billion owed to AMCON, the airline also owes about N50 billion to Nigerian banks and another $78 million to IATA.

“The airline was also in credit to their fuel suppliers and was not able to pay staff salaries for months.

“There was no good corporate governance in Arik as most decisions were single-handedly taken by the executive chairman,’’ he said.

According to him, out of the almost 30 aircraft in the airline’s fleet, only about 10 are currently serviceable, which made the new management to reduce its routes and flight operations.

He said that the new management also discovered that Arik had no record of gains and losses of operations carried out in 2015.

Mr. Tumba said the management in collaboration with AMCON had appointed KPMG to carry out a forensic audit on the airline, and the result would be out in 10 weeks.

“AMCON is not interested in liquidating Arik Air. We believe that the airline, which has one of the youngest fleet in Africa, can be turned around through good corporate governance and financial discipline.

“The current management is looking at the backlog of salaries owed staff because the staff should be motivated to get the airline running properly.

“The current management is working with government to add five aircraft to the fleet to increase its size and the airline’s routes.

“We have also resolved the issue of fuel supply, which has improved Arik Air’s flight operations since the takeover,” he said.

 

Source: NAN

AMCON, Arik and an urgent public need – By Lekan Fatodu

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To many close observers, particularly the travelling public, the news of Arik Air, Nigeria’s biggest airline, being taken over by the Asset Management Corporation of Nigeria (AMCON) over the reported huge indebtedness of the airline wouldn’t come as a surprise.

For the past few months, the wholly Nigerian airline has been in the news more for problematic reasons than records of any major accomplishment.

The airline’s challenge took an ugly turn in January when passengers on both its local and international routes reeled out in anguish about being stranded at various airports. Others who were lucky to fly out of the airports later discovered, on getting to their destinations, that their luggage didn’t arrive with them.

Things actually got so messy that at a stage some passengers, out of frustration, almost lynched a manager of the airline at the Murtala Muhammed International Airport in Lagos. Yes, it was really that bad.

Obviously the adverse effects of the airline’s ineptitude on the socio-economic activities of passengers most of whom operate in different sectors of the Nigerian economy presently gasping for breath in the midst of a nasty recession has proven to be enough to make many people go gaga.

Sadly though, the management of the airline itself did practically nothing to tackle the real issue afflicting its services in a manner that will deepen public understanding, engender necessary solution and prevent such debacle that played out from repeating itself.

And this, amongst other now failures of the airline that are now public knowledge, has unsurprisingly resulted in the intervention of AMCON to rescue the airline from the sea of troubles threatening to drown it.

Following is what AMCON had to say after taking over at the airline.

“The Asset Management Corporation of Nigeria, AMCON, has discovered deep rooted rot at Arik Airlines, which would require over N10 billion to fix before the largest local carrier would resume full and uninterrupted flight operations to its regular routes across the country and beyond.

“The situation is so bad that only nine aircraft out of the 30 in the fleet of the airline is operational. 21 of them have either been grounded, gone for C-check in Europe among other forms of challenges.

‘’As if these problems are not enough, the airline does not have money to procure aviation fuel for the nine operational aircraft because no dealer wants to sell aviation fuel to Arik if it is not on cash-and-carry basis.

‘’This also calls for public understanding because flight schedules may be realigned based on the nine aircraft that are available, technically sound and ready for flight operation.

“It was also discovered that Arik also owes its technical partners and also in perpetual default in its lease payments and insurance premium, leading to regular and embarrassing squabbles with different business partners, which account for why 21 aircraft are off the fleet for different reasons.

“All these problems, in addition to huge staff salaries, which have remained unpaid for 11 months; vendors that supply different items to Arik Airlines that are also owed, meant that Nigerians may have to tarry awhile to allow the new management clean up the huge mess at the airline before Arik would finally resume uninterrupted flight.”

Expectedly, the dissolved management of Arik hit back at AMCON dismissing most of the claims made by the government agency. According to it, AMCON’s excuses for the takeover were well crafted decoy made to enable the easy conversion of the private airline to a national carrier.

Indeed, the present government has mooted the idea of running a national carrier as a way of advancing the economy by harnessing and maximising the massive benefits in the country’s aviation sector.

But the way the Nigerian Airways, the rested national airline, and many other monumental and profitable public assets were run aground, has cast doubt in the minds of many on the government’s ability to operate profitably a new national airline or any business enterprise for that matter.

However, the assessment of the efforts of AMCON now that the government agency is on the wings of Arik should be the major test of the workability of the national carrier proposition.

Actually, before any other thing, the main focus of the new AMCON team at Arik should be to make a fast move in resolving all the issues that have hindered the airline from reaching its true potentials.

It is really disheartening seeing that an airline that enjoys between 55-60 per cent share of the air transport market in Nigeria is faced with challenges that are in the real sense a no-brainer, especially when most of the other airlines that constitute the remaining 40 – 45 market share are not better off.

The Nigerian government and air travellers who use the aviation line for various businesses and engagements need reliable, efficient and safe air services to support in building a virile economy.

Countries that are deemed prosperous attain their glorious heights by ensuring sound and excellent operations in all critical areas of the economy amongst which the aviation sector is accorded a worthy attention.

The situation of Arik is a peculiar one given its position amongst others and the condition of its workforce which is said to be over 1,800 people, many of whom were being owed salary arrears of four to six months at the time of the takeover. That is why the new AMCON team should direct their energy and expertise towards the urgent need to deliver a truly dependable Arik that will meet the expectations of the majority of Nigerian air travellers.

AMCON Seeks Private Investors For Arik Air

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The Asset Management Corporation of Nigeria (AMCON) is shopping for investors for troubled carrier Arik Air.

AMCON told the Senate Committee on Banking, Insurance and other Financial Institutions that Nigeria’s biggest airline would have stopped flying within the next three weeks if it did not intervene.

AMCON, on February 9, announced the removal of the Arik Air management and appointment of a receiver-manager.

Committee Chairman Rafiu Ibrahim noted that it appeared that the takeover of the airline was belated.

AMCON Managing Director Ahmed Kuru, who briefed the committee, said that contrary to some claims, Arik owed AMCON N147 billion.

Kuru also said the airline owed some local banks over N165 billion. Foreign debts, he said, stood at $81 million.

The airline owes over 2,000 staff between six and seven months salary arrears, Kuru said.

The AMCON boss noted that negotiations were ongoing on how to immediately resolve the salary arrears.

Kuru said the airline had 30 aircraft, but only 10 were in operation.

The AMCON boss noted that prior to the interim takeover of the airline, it was obvious that it could no longer meet its financial obligations.

He said the airline frequently relied on collection of fares from passengers before it could buy such basic things as aviation fuel.

Kuru insisted that it was obvious that the incessant cancellations and delays of flights was as a result of the airline’s inability to buy aviation fuel.

He dismissed the insinuation that the Federal Government was planning to make Arik Air a national carrier.

Insisting that there was no plan to make the airline a national carrier, Kuru described it as “too problematic for the government to handle.”

He said: “Despite all the things we have done to ensure that Arik Air stays in business, they have not done their part in meeting their own obligations. Arik Air is owing up to seven months salaries.

”They have refused to pay salaries and also refused to ensure that their loans are repaid. We could not just sit back and allow an important airline with about 30 aircraft and covers 55 per cent of all routes in Nigeria to go down. From the records, Arik makes over N7 billion annually.

”We are talking to people to see how they can acquire the airline. They came. But when they saw the records of what was on ground, they decided to suspend everything, pending when we will resolve some of the issues bedeviling it.

”We have deployed people there to manage it, pending when we can stabilise it and then bring in investors to take over. We discovered that out of the 30 aircraft of the airline, only about 10 were functional. Some of them were not in Nigeria. They have refused to meet all their obligations, even the insurance payment. They did not even have money to buy aviation fuel.

”What they did was that they collected money from passengers and then quickly use the monies realised to buy fuel. This is how they have been running the place and these were some of the things we met on ground.

”The first thing we did when we moved in was to address the payment of salaries of staff. Remember some of them were owed for up to seven months. The staff of the airline are very pleased with what we have done.

”We are hopeful that with an annual profit of about N7 billion and if the monies are not laundered, I think we can pay back the loans in time. AMCON debt is about N147 billion. There are local banks which Arik Air is owing about N165 billion. These banks collect all the monies they make.

”The issue of converting the airline to a national carrier is not on the table. Arik is too complicated to make a national carrier. The total asset worth of the airline right now is less than N40 billion.

”Government does not have plans to do that. The interest of government is that we must continue to fly and people must work. They have about over 2,000 staff.

”They do not need more than N10 billion to stabilise their operations. Within the next three months, they will be able to pay back what we have put in right now. In national interest, Arik Air should be allowed to fly.”

The AMCON boss said: “Within the next two to three weeks, Arik Air should have up to 15 or 16 aircraft flying. Arik Air cannot compete internationally. They do not have the kind of services other airlines have.”

Kuru said the suspension of international flights became necessary because the airline cannot cope.

He said the airline spends about N1.6 billion on aviation fuel on 12 international destinations.

He said AMCON is certain that the airline lacked the capacity for international flights.

He said: “We are thinking of suspending international flights. Arik Air needs about N1.6 billion to buy fuel for international routes. We cannot do that right now. By the time we manage it for about six months and the airline can now survive, then we can sit down and talk about where to go from there.

”Based on what we have achieved in just one week, we are hopeful that in the next three weeks, the issue of delayed or cancelled flights will be things of the past.

”We are carrying everybody along. At the end of the day, we want to return it to profitability. We need to emphasise one fact – that the only way we can recover our debts is for Arik Airline to continue to fly. The banks have come to realise that this is important.

”Government has a responsibility to ensure that it intervenes whenever there is any threat to national interest. Within the next 30 days, we will be going to places we have not been to in the last three years.”

The committee praised the move to take over the airline by AMCON.

It, however, noted that the takeover time appeared to be belated.

Senator Rafui Ibrahim compared what he described as the mess in the airline with the alleged fraud perpetuated by the immediate-past National Security Adviser (NSA), Col. Sambo Dasuki.

He said: “Was the takeover not done rather too late? From what you have given us, this is worst than Dasukigate. It appears what is happening in private sector is worst than that of the public sector.”

The AMCON boss said that the Central Bank of Nigeria (CBN) was prepared to support the turnaround of Arik Air.

Kuru also said: “In line with AMCON’s statutory mandate, the non-performing loans of Arik Air were acquired in 2011 from two banks:

”Union Bank Plc N71billion, Keystone Bank Limited N14billion (transaction originated by defunct Bank PHB). Total amount N85billion

”The facilities were granted to Arik for purchase of additional aircraft and to refinance existing term loans. The default in repayment posed systemic threat to the banks and indeed the Nigerian economy.

”The principal promoter of Arik Air is Sir Johnson Arumemi-Ikhide. Apart from AMCON, Arik is also currently indebted to other commercial banks, including Standard Chartered, Zenith Bank, Ecobank and Access Bank, to the tune of N165billion.

”N26billion is owed to the Federal aviation agencies and regulations. $11million is owed to European aviation agencies and service providers. $20million owed to Lufthansa Technique.

”AMCON also acquired three other non-performing loans of companies in which the principal promoter is Sir Johnson Arumemi-Ikhide.

Rockson Engineering (N107billion), Ojemai Farms Limited (N8.6billion). Ojemai Investment Limited (N1.9billion). Total exposure of Sir Arumemi-Ikhide to AMCON is N263. 7 billion.

”In September 2011, AMCON restructured Arik’s debt from N85 billion to N70 billion as a nine-year term loan running at 12% per annum. ‘ Other terms of the restructure included the following:

”AMCON to appoint a resident Monitoring Manager who shall have the authority to call for any of Arik’s records for examination.

”Arik to provide three-year record of its remittances to FAAN.

”Arik defaulted on the term of the restructure and failed to make the monthly repayment as agreed.

”In May 2013 AMCON sourced N26billion of the CBN/PAIF through BOI on behalf of Arik.

”AMCON disbursed N21.38billion of the BOI loan to Arik as working capital.

”Out of this amount, N2.4billion was meant for reconfiguration of two aircraft from passenger to cargo carriers. This was never done as the funds were diverted by Arik management and is now the subject of EFCC investigation. Both aircraft were abandoned in the UK.

”In December 2015, due to accrued interest and unpaid principal, a second restructuring was proposed for Arik debt to reduce the debt from N138billion to N90billion.

”Proposal awaiting CBN approval.

“This was proposed based on Arik’s plan to do a private placement and subsequently do an IPO within a period of six months. Based on that, they were expecting N44billion from Afrexim as a bridge. None of this happened as Arik could not comply with any conditions given to them.

“In spite of the leniency and good faith demonstrated by AMCON throughout the negotiations, Arik refused or neglected to adhere to the terms of settlement.

“AMCON continued to bear the burden of repaying the B01 loan at 1% interest rate without any corresponding commitment from Arik. So far, AMCON has paid N9.05billion on behalf of Arik. Refusal to cooperate with the AMCON resident Monitoring Manager. Refusal to disclose financial information to AMCON.

”Total recoveries from Arik till date N4.6billion (only 3.2% of current exposure). Total repayment by Arik in the last 12 months- N50million only.

”As at December 2016, Arik’s debt in AMCON stood at N146billion due to mounting interests and unpaid principal.

“The consolidated exposure of debtor-companies in which Sir John Arumemi-Ikhide is the principal promoter in AMCON stands at N263.7billion.

“This figure excludes Arik’s indebtedness to other banks, aviation authorities (local and foreign), vendors, contractors and workers.

“As at December 2016, Arik’s debt in AMCON stood at N146billion due to mounting interests and unpaid principal.

“The consolidated exposure of debtor-companies in which Sir John Arumemi-Ikhide is the principal promoter in AMCON stands at N263.7billion.

“This figure excludes Arik’s indebtedness to other banks, aviation authorities (local and foreign), vendors, contractors and workers.

“Arik has about 30 aircraft, the largest fleet in Nigeria. Holds approximately 55-60% of the air transport market in Nigeria.

“Serves 18 domestic and 11 international destinations, including Johannesburg, London, Dubai, and New York City.

“Estimated revenue at N7billion monthly”.

AMCON takeover of Arik Air “necessary but belated”, says Nigerian Senate

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The Senate Committee on Banking, Insurance and Other Financial Institutions yesterday reviewed the ugly details that crippled the operations of Arik Air and submitted that the intervention announced by the Federal Government last week was late and belated.

The committee, which however expressed support for the intervention noted that the airline could have averted the unfortunate situation if it had paid attention to issues of financial management and applied best practices fiscal management.

Chairman of the committee, Rafiu Ibrahim said the Senate had always stood in support of policies that would promote the welfare and living standards of Nigerians.

AMCON’s Managing Director, Ahmed Kuru, revealed that contrary to earlier claims, the troubled airline is owing AMCON N147 billion and other local banks to the tune of at least N165 billion adding that the foreign debts of the airline stood at $81 million.

The AMCON boss also told the committee members that the airline is owing over 2,000 staff seven months salary arrears. He said negotiations were currently ongoing on how to immediately resolve the arrears.

Kuru also revealed that of the 30 aircraft owned by Arik, only 10 were operational. According to him, the airline frequently relied on collection of ticket fees from passengers before they could buy aviation fuel. He partly blamed the incessant cancellation and delay of flight on its inability to buy aviation fuel.

Kuru, while dismissing claims that the Federal Government was planning to make the airline a national carrier, said it was too problematic for any government to handle.

He said within the next two to three weeks, the new management of the airline will put 15 to 16 aircraft back to the 18 nationwide routes.

He said: “Within the next two to three weeks, Arik Air should have up to 15 or 16 aircrafts flying. Arik Air cannot compete internationally.

They do not have the kind of services other airlines have.

“Despite all the things we have done to ensure that Arik Air stays in business, they have not done their part in meeting their own obligations.

“They have refused to pay salaries and also refused to ensure that their loans are repaid. We could not just sit back and allow an important airline with about 30 aircrafts and covers 55 per cent of all routes in Nigeria to go down. From the records, Arik makes over N7 billion annually.’’

Newly appointed chief executive officer of the airline, Mr. Roy Ilegbodu, who described the state of the airline as alarming disclosed that its performance stood at 15 per cent as against 25 per cent minimal requirement in the aviation sector.
Apart from AMCON, Arik is also currently indebted to Standard Chartered, Zenith Bank, Ecobank and Access Bank.

Days after Arik takeover, AMCON takes over OAS Helicopters.

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The Asset Management Corporation of Nigeria (AMCON) has taken over Odengene Air-Shuttle Services (OAS) Helicopters in Lagos.

This comes five days after the agency took over Arik Airlines, which is currently immersed in heavy financial debt burden.

On Tuesday, AMCON sealed the head office of the company in Maryland, Lagos.

A court order on the company’s office reads: ‘POSSESSION TAKEN TODAY 14/2/17 BY AMCON COURT ORDER ON SUIT NO. FHC/4CS/1139/2016?.

NAN said it could not confirm if OAS is indebted to some banks, but listed the company among the airlines that received intervention fund from the federal government during the tenure of former President Goodluck Jonathan.

OAS is one of the leading helicopter chatter service companies in the country.

For some time now, the airline, which carries about 55 percent of the load in the country, has been going through difficult times.

These are attributable to its bad corporate governance, erratic operational challenges, inability to pay staff salaries and heavy debt burden among other issues.

AMCON took over Aero Contractors in 2016, but the airline has not regained stability since then.

Arik’s new management hires KPMG to audit airline’s financial status

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The new management of Arik Air has appointed KPMG, one of the big four audit firms in the world, to undertake a forensic and diagnostic audit to ascertain the true status of its finances.

The audit 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 Air’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 new management said via a statement.

“The whole intention is to identify what went wrong with Arik to enable the new management to bring it back to full operations.”

The federal government, through the Asset Management Company of Nigeria (AMCON), intervened last week in the airline following complaints of huge indebtedness of the airline to various creditors and the frequent interruptions in its operations, and the concern to safety and security.

AMCON sets out to cut down Arik Airline’s flight operations

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The new management of Arik Airline will this week scale down flight operations to realign with the number of serviceable aircraft currently at its disposal.

The new schedule, The Guardian learnt, will mean smaller number of flights per day, compared to about 100 to 120 the airline ran some months ago.

With limited frequencies on some high-traffic domestic routes, and temporary suspension of others including the internationals, passengers may be faced with limited options. There may also be further reduction in the revenue accruing to the airline, regulators and government agencies.

Arik, the largest carrier in West and Central Africa, was accused of bad corporate governance, erratic operational challenges, inability to pay staff salaries and a heavy debt burden, among others.

Upon AMCON’s takeover, it was discovered that the airline’s 28 aircraft fleet size is left with 10 functional planes, with 10 in overseas and eight grounded at the Lagos airport.

The Federal Government on Friday said plans were on to return the 10 aircraft stuck overseas over unpaid maintenance cost to boost the capacity of the airline.

Sources at AMCON confirmed that a temporary scale-down of operations had been agreed pending the arrival of more aircraft. The measure is to ensure efficient services and put an end to the era of flight cancellations.

A source, who would not want to be mentioned, said: “The management is planning to stabilise its operations by scaling down flight operations based on the number of serviceable aircraft at its disposal, until more aircraft return from C-check and maintenance yards abroad. Therefore, a new schedule will be announced in the next few days to accommodate its existing fleet of 10 aircraft.”

While the airline’s Lagos-New York services had been suspended, the Lagos-London and Lagos-Johannesburg flights ran at the weekend.

Head of the Corporate Communications Department of AMCON, Jude Nwauzor, stated that the “mess” met on ground was actually bigger than anticipated, and that it would require over N10 billion to fix the rot before the airline could resume full and uninterrupted operations to its regular routes across the country and beyond.

“It appears that unlike previously recorded, Arik has debts in excess of N300 billion, especially with some banks, excluding fuel suppliers, lessors and maintenance companies.

“Due to government’s intervention, operations are continuing and the insurance cover for the aircraft which would have expired on Sunday, 12 February has now been sorted out. Trade creditors and fuel marketers have been assured that all indebtedness will be looked into; they have offered to support the new management to get operations run smoothly.

Meanwhile, airline operators have blamed the misery of Arik Air and Aero Contractors on the burden of multiple charges and taxation forced on the local airlines.

Chairman, Airline Operators of Nigeria (AON), Capt. Nogie Meggison, alleged that despite the challenges of economic recession and unfriendly business environment, the system continued to “manipulate, feasting on and pushing the financial envelope of airlines by inflicting multiple taxes, charges and levies to the extent that airlines are now groaning under the pressure and some are going bankrupt.”

Meggison added that the airlines had been complaining about the same issue over the years that had culminated in sending of over 27 of them under in the past 25 years.

“This is without recourse to the fact that aside from all the multiple charges, levies and fees, airlines still have to pay mandatory statutory corporate taxes to relevant agencies.”

He said if the difficult environment continues, none of the airlines would survive for long.

AMCON: 10 billion Naira needed to revive Arik

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The Asset Management Corporation of Nigeria (AMCON) on Sunday said it had discovered deep rooted rot at Arik Airlines.

The organisation said it would require over N10 billion to fix the rot before the largest local carrier could resume full and uninterrupted flight operations.

The asset company made the disclosure in a statement signed by Jude Nwauzor, its Spokesman.

AMCON took over the company on February 9, saying Arik was indebted to the tune of over N300 billion.

The statement said the situation was so bad that only nine aircraft out of the 30 in the fleet of the airlines were operational.

According to the statement, 21 of them have either been grounded, gone for C-check in Europe, among other forms of challenges.

“As if these problems are not enough, the airline does not have money to procure aviation fuel for the nine operational aircraft because no dealer wants to sale aviation fuel to Arik if it is not on cash-and-carry basis,” it read.

“This also calls for public understanding because flight schedules may be realigned based on the nine aircraft that are available, technically sound and ready for flight operation.”

“All these problems in addition to huge staff salaries, which have remained unpaid for 11 months; vendors that supply different items to Arik Air that are also owed means that Nigerians may have to tarry-a-while to allow the new management clean up the huge mess at the airline before Arik would finally resume uninterrupted flight.”

The statement quoted Roy Ilegbodu, a veteran aviation expert who is now in charge of the airline, as reassuring Nigerians that the issues, though daunting, would be gradually resolved.

He said once all the aircraft were back to the fleet, Arik Air would within the shortest possible time regain its pride of place as a leader among the comity of airlines in Nigeria.

It said the new management had settled the insurance cover for the aircraft which would have expired on February 12 and also met with different trade creditors as well as aggrieved staffers.

It called for public understanding as the management begins the tough job of ensuring that Arik is returned to full operational capacity within the shortest possible timeframe.

Arik Air owing ‘more than N300bn’ – AMCON

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The Asset Management Corporation of Nigeria (AMCON) says Arik Airline’s debt is more than N300bn and that a large part of it is taxpayers’ funds.

The corporation announced its takeover of the management of the airline, which is Nigeria’s largest carrier, in a statement on Thursday.

According to AMCON, the airline will now be managed by Roy Ilegbodu, under the receivership of Oluseye Opasanya (SAN).

The corporation said it took over Arik’s non-performing loans – running into billions of naira – a few years ago, in exchange for a stake in the airline.

A breakdown of the statement by the digital media office of the presidency listed the “issues” surrounding the intervention as:

  • Arik Air is on the verge of collapse. On Wednesday February 8, 2017, Arik temporarily suspended flight operations to John F Kennedy International Airport, New York, United States.
  • Arik’s total debt profile: more than 300 billion naira?—?a large part of this is taxpayers’ funds in the form of bailouts. Arik constantly defaults in its lease payments and insurance, resulting in the regular confiscation of aircraft by lessors.
  • Arik currently has more than eight aircraft grounded for various reasons. This is one of the reasons for the flight delays and cancellations regularly suffered by customers.
  • Arik is owing staff salaries for several months. It has also been failing to remit tax deductions from workers’ salaries.
  • Arik habitually flouts regulators’ directives.
  • Arik is perpetually bickering with Aviation Unions including the National Union of Air Transport Employees (NUATE), the Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) and the National Association of Aircraft Pilots and Engineers (NAAPE).
  • In summary, Arik Air is on the verge of collapse. On Wednesday February 8, 2017, Arik temporarily suspended flight operations to John F. Kennedy International Airport, New York, United States.
  • Arik’s total debt profile: more than 300 billion naira?—?a large part of this is taxpayers’ funds in the form of bailouts.

Another reason for the intervention is “to enable Arik return to regular, undisrupted operations; to avoid job losses; to protect investors and stakeholder funds; to rebuild the credibility of the Airline and its brand; to ensure sure safety and stability in Nigeria’s already challenged aviation sector”.

Arik Air vows to challenge Nigerian government takeover

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The management of Arik Air on Thursday said it would challenge the taking over of the airline by the Assets Management Company of Nigeria (AMCON) in court.

Ado Sanusi, Senior Vice President, Arik Air made the disclosure at a joint news conference with the newly appointed receiver manager, Oluseye Opasanya, and the airline’s technical consultant, Roy Ilegbodu.

The asset company had on Thursday taken over the airline following its huge indebtedness to local and foreign creditors.

Mr. Sanusi said the airline had been served with a valid court order empowering AMCON to take over the company.

“As responsible citizens, we have obeyed the court order which appointed the Olaniwun Ajayi (SAN) as the receivership manager.

“We will comply but I want to make it clear that we have a right to challenge the court order.

“In the coming days, we will make our position known. It is a court order and we can challenge it and we will challenge it to the highest court of authority,” Mr. Sanusi said.

He added that while the legal battle would be on one front, the parties had agreed that Arik Air would continue to run without any disruption.

Also speaking, Mr. Opasanya said AMCON was on a rescue mission to re-position the embattled airline.

Mr. Opasanya said :”AMCON has been a creditor to Arik for sometime. It also has security over substantial parts of the assets of Arik.

“The debt of Arik to AMCON has not been paid and huge sums of money is owed.

“So AMCON, having consulted widely with government authorities, has decided to appoint me to preside over the affairs of Arik.

“So we have come to supervise the operation, sustain the operation, improve services and ensure that we support Arik with people of deep knowledge, experience and commitment in the airline industry.”

According to him, Arik plays a pivotal role in the airline industry and many Nigerians are currently drawing their means of livelihood from the company.

“We have addressed the workers and the management and we want to assure other stakeholders and members of the public that the desire of AMCON is to keep the airline flying.

“AMCON is willing to support the operation of Arik and together with the government, work to meet the immediate essential needs of the company, “he said.

On his part, Mr. Ilegbodu said Arik had 28 aircraft in its fleet but only 10 are currently being used for operations.

He said his duty as technical consultant was to get to the root of the problems bedeviling the airline to ensure its sustainability.

 

Source: NAN

BREAKING: Finally, Aero Contractors ready to fly again.

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Aero Contractors Airlines will resume flights this week after shutting down for nearly nearly four months, TheCable understands.

The airline, which used to be industry leader before entering economic turbulence, suspended operations “indefinitely” from September 1, 2016.

But insiders told TheCable that the airline will resume operations “most likely on Wednesday” after securing new investors and getting a breather.

“If things work according to plan, the staff will be recalled and addressed on Monday, IT staff will resume on Tuesday and flight operations will commence on Wednesday,” the source said.

Aero will restart by flying only three routes: Abuja, Lagos and Port Harcourt.

This will come as a relief to Nigerian travellers who have had their options limited since the aviation industry went into a tailspin following financial and fuel crises.

TheCable could not confirm if the airline got foreign investors to re-start operations.

When Aero suspended operations, its CEO, Fola Akinkuotu, had said it was pursuing a “strategic business realignment” to reposition the airline and return it to the path of profitability.

“This business decision is as a result of the current economic situation in the country, which has forced some other airlines to suspend operation or outrightly pull out of Nigeria,” he said.

“In the case of Aero, the airline has faced grave challenges in the past six months, which impacted its business and by extension the scheduled services operations.

“This suspension is pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services.

“The implication of the suspension of scheduled services operations extends to all staff directly and indirectly involved in providing services, as they are effectively to proceed on indefinite leave of absence during the period of non-services.

“We are aware of the impact this will have on our staff and our highly esteemed customers, hence we have initiated moves to ensure that we are able to return back to operations within the shortest possible time, offering reliable, safe and secure operations.’

Hundreds of its employees staged a peaceful protest after the suspension of operations which they blamed on the Asset Management Company of Nigeria (AMCON), the “bad bank” set up by the central bank to buy the debts of heavily indebted companies.

NAN reported that the protest was organised by the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and National Union of Air Transport Employees (NUATE).

The workers marched round the Murtala Muhammed Airport, Lagos, carrying various placards expressing their grievances.

The placards had inscriptions such as, ‘Don’t Allow Aero to Die,’ ‘Save Aero from AMCON’ and ‘Aero must not go the way of Nigeria Airways,’ among others.

Speaking on behalf of the protesters, Frances Akinjole, the Secretary, ATSSSAN, condemned the ‘illegal closure’ of Aero Contractors by AMCON, adding that they would resist the plan to liquidate the company.

Akinjole accused AMCON of running the airline aground after it took over majority shares in 2011 by approving bogus salaries and allowances for its representatives.

“Before AMCON took over, the airline had 11 operational aeroplane. They claim to have injected N12 billion in the company, but today, the airline has only three aircraft,” she said.

“This is calling on all well-meaning Nigerians to please come to the aid of Aero at this crucial time in her life.

“Aero should not be allowed to die from the strangle of AMCON.”

AMCON plans to sell Keystone Bank to ‘powerful northern group’, officials say.

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Some senior officials of the Asset Management Corporation of Nigeria are voicing strong opposition to the planned sale of Keystone Bank Ltd., PREMIUM TIMES can report.

The disquiet comes as the state-owned asset management company is set to announce new owners for the bank, which is the last of the three nationalised financial institutions yet to be sold, PREMIUM TIMES learnt.

The disturbed officials say Ahmed Kuru, the chairman of AMCON, has concluded plans to hand over Keystone to a coalition of powerful Northern interests, disregarding extant takeover provisions of AMCON in the process.

Barring any last minute changes, a firm linked to former Vice President Atiku Abubakar and Umar Modibbo, MD/CEO of Sigma Pensions Limited, may emerge the new owner of Keystone Bank with its nearly 160 branches, PREMIUM TIMES understands.

The two influential Nigerians are allegedly being represented by the firm which our sources said did not participate in the bidding process, in a clear contradiction of basic public asset sale requirements.

Following a commercial placed for the bidding process by AMCON, 13 companies submitted their expression of interests. These did not include the firm which AMCON is now set to sell the bank to.

The deal could also see Nigerian taxpayers lose billions of naira if allowed to stand. This is because AMCON is reportedly in talks to sell the bank for about N25.1 billion, representing only a fraction of the approximately N200 billion that AMCON paid to purchase the bank’s bad debts in 2011.

This is despite the fact that some of the companies that participated in the bidding process offered more than the amount and had core banking expertise, PREMIUM TIMES learnt.

The Keystone Bank, previously known as Bank PHB, was among the three banks nationalised by the CBN in 2011, after failing failed a stress test conducted by the apex bank.

The two others, Mainstreet and Enterprise Banks, had been handed over to other stronger banks in the industry by AMCON more than a year ago.

The delay in announcing new owners for Keystone, PREMIUM TIMES learnt, is not unconnected with the internal squabbles among the management of AMCON.

The members, who spoke strictly on the condition of anonymity, said Mr. Kuru sidestepped laid down requirements for asset sale to ensure Keystone is ceded to his cronies.

“It is very clear that all caution was thrown to the wind as a result of a grand plan to disqualify very strong and reputable intended buyers in order to allow the cronies and business associates of the Managing Director take over the bank,” a senior AMCON official said.

Mr. Kuru was appointed by President Muhammadu Buhari in August 2015, and the board members said the sale of Keystone could dent the administration’s much-avowed anti-corruption war.

The opinions being widely held across the country that the president has a sectional agenda will also be put to test by the outcome of the sale, a source said.

The concerned officials wondered why AMCON would sell a bank of Keystone’s magnitude to a firm that has no requisite expertise in banking and financial management.

“It is an open secret within the banking sector in Nigeria that the sale was arranged for this powerful northern group whose promoters do not have the required banking experience, thereby raising questions about the supposed independence of the international advisers of AMCON in the sale of Keystone,” one official said.

Mr. Modibbo could not be reached for comments.

The AMCON chairman, Mr. Kuru, was as at the time of publishing yet to respond to an email enquiry sent to him.

Mr. Atiku’s spokesperson, Paul Ibe, said he had no prior knowledge of his principal’s involvement in the controversial transaction, but still suggested that the opposition to his principal’s role by some AMCON officials might have been politically-motivated.

“I am not aware if his Excellency is interested or is involved in Keystone Bank. But even if he is, does that disqualify him? Is it because he’s a former Vice President and an APC chieftain? Hasn’t he run businesses successfully? Created jobs? Delivered dividends to shareholders? Paid taxes?

“Who are those internally? Who are the people? Is it politicians who are mischief makers hiding under the cover of internal people?” Mr. Ibe said.

When told that the sources are actually top officials of AMCON, Mr. Ibe said he would rather take the questions by email. An email forwarded to him was yet to be responded to as at the time of this report.

Senate pledges to strengthen AMCON’s debt recovery drive.

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The Chairman of Senate Committee on Banking, Insurance and other Financial Institutions, Senator Rafiu Ibrahim, yesterday said time would soon run out on recalcitrant obligors of the Asset Management Corporation of Nigeria (AMCON), given the renewed commitment of the lawmakers to support AMCON’s debt recovery drive.

Members of the Senate Committee on Banking, Insurance and other Financial Institutions are in Uyo, for a three-day retreat to deliberate on the best approaches to be adopted to help the challenged Nigerian economy.

The theme of the retreat is: “Economic Rebuilding through Eligible Assets Recovery.”

According to a statement, in attendance were the management of AMCON led by its Managing Director/Chief Executive Officer, Mr. Ahmed Kuru.

According to a statement, Ibrahim stated that the gathering was timely because the entire hallowed upper legislative chamber was committed to helping in stabilising the economy.

According to him, “This retreat for the Senate Committee on Banking, Insurance and other Financial Institutions is in keeping with our commitment to build strategic collaborations in order to develop greater capacity for sustained development. It is my hope that we will fully achieve the objectives of this retreat thereby strengthening the relationship between AMCON, this committee and indeed the entire hallowed upper legislative chamber.

“It is my expectation that at the end of the day, this committee will have identified new legislative support frameworks for AMCON where necessary, as well as more efficient ways to consolidate on already existing support legislations and frameworks so that AMCON can be strategically positioned to optimally perform its uniquely important responsibility of asset recovery and management.”

Earlier in his remarks, Kuru, told the committee that AMCON was seeking for support and partnership of the upper legislative chamber because of the frustration from obligors most of who are riding and leveraging the deficiencies in our institutions to hold AMCON and the nation to ransom.

“After more than 6 years of operation, all efforts to recover diligently have failed. We now have to resort to the Act setting AMCON up by resorting to the courts…Let me be quick to add here, that AMCON is not trying to unduly prejudice the views or positions of stakeholders, especially the judiciary.

“We are a responsible law abiding organisation with respect for the rule of law. However, our campaign is intended to draw attention to the enormity of the challenges and potential threats, which the bad loans in our portfolio pose to the wider economy and the common man.

“We are mindful of time as AMCON is a corporation with a very short lifespan. Our sunset date is drawing nearer each day. In fact, other similar institutions around the world, like Malaysia have wound up their recovery vehicles. They are now focused on managing or turnaround of the assets taken over during the recovery phase.”

Workers Protest AMCON’s Closure Of Aero Contractors In Other To Save Their Jobs

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Hundreds of employees of Aero Contractors Airline on Wednesday staged peaceful protest over the closure of the airline by the Asset Management Company of Nigeria, AMCON.

The News Agency of Nigeria reports that the protest was organised by the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and National Union of Air Transport Employees (NUATE).

The workers, who began the protest at about 8.45 a.m., marched round the Murtala Muhammed Airport, Lagos, carrying various placards expressing their grievances.

The placards had inscriptions such as, “Don’t Allow Aero to Die“, “Save Aero from AMCON“ and “Aero must not go the way of Nigeria Airways“, among others.

Speaking on behalf of the protesters, Frances Akinjole, the Secretary, ATSSSAN, condemned the “illegal closure’’ of Aero Contractors by AMCON, adding that they would resist the plan to liquidate the company.

Mrs- Akinjole accused AMCON of running the airline aground after it took over majority shares in 2011 by approving bogus salaries and allowances for its representatives.

“Before AMCON took over, the airline had 11 operational aeroplane. They claim to have injected N12 billion in the company, but today, the airline has only three aircraft.

“This is calling on all well-meaning Nigerians to please come to the aid of Aero at this crucial time in her life.

“Aero should not be allowed to die from the strangle of AMCON,’’ she said.

She said that the threat to liquidate the airline would render its over 800 staff unemployed which would have negative effects on the already sick Nigerian economy.

NAN

AMCON Shuts Senator Bruce’s Companies Over Debt

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The Asset Management Corporation of Nigeria on Thursday morning sealed the Abuja premises of Silverbird Galleria belonging to Senator Ben Murray Bruce.

The galleria currently houses the Abuja studio of the Radio and Television stations of the senator as well as his other business interests.

Apart from Bruce’s companies, the seven storey building also houses other business interest of private individuals such as Shoprite, among others.

The building was sealed by AMCON through the assistance of law enforcement agencies around 8am following a court order secured by AMCON.

Conspicuously written on the fence of the building as well as other strategic locations was an enforcement notice by AMCON which says, “Possession taken by court order 26/06/16.”

Credit: Punch

AMCON Takes Over Aero Contractors

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In furtherance of the statutory responsibility of acquiring Eligible Bank Assets and putting them to economic use in a profitable manner, the Asset Management Company of Nigeria (AMCON) has dissolved the Board of Aero Contractors and appointed a Manager over the affairs of the airline.

AMCON announced today in a press statement. AMCON is both the majority shareholder and creditor of Aero.

It said an industry based management team will be put in place to provide the highest level of professional competence which would ensure a quick repositioning of the company.

“The management of AMCON decided to make changes in the Management of the airline to protect the brand heritage of the airline, a very well cherished value. AMCON also maintains that its intervention is in the public interest to sustain and improve the robust and premium quality service which Aero is known for in the country” the statement noted.

“AMCON would like to assure the regulatory authorities, the traveling public and key stakeholders that the airline will continue to operate on the solid foundation of safety and security with excellent customer service” it said.

It further noted that, AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last 5 years.

Credit: dailytrust

Senate Confirms Nomination Of Ahmed Kuru As AMCON MD

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The Senate has confirmed the nomination of Ahmed Lawan Kuru as Managing Director of the Asset Management Corporation of Nigeria (AMCON).

Recall that Kuru was appointed by President Muhammadu was appointed to replace Mustafa Chike-Obi after Buhari dissolved the executive team of the Assets Management Corporation of Nigeria (AMCON)

Kuru is formerly the Group Managing Director and Chief Executive Officer of the defunct Enterprise Bank Limited. He started his banking career with the old Habib Bank in 1985 and rose through the ranks to become an Executive Director of Bank PHB (now Keystone Bank) in 2005.

He holds a Bachelor of Science (B.Sc) degree in Accounting and a Masters’  in Business Administration. He is respected in the banking industry, as a result-oriented and deft leader, who has a strong accountability record.

Buhari Dissolves AMCON Mgt Team

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President Muhammadu Buhari on Tuesday approved the dissolution of the executive management team of the Asset Management Corporation of Nigeria (AMCON).

A statement by the Special Adviser to the President, Media and Publicity, Mr. Femi Adesina, said Buhari also approved the reconstitution of a new management team for the corporation.

With the announcement, Mr. Mustapha Chike-Obi, the pioneer managing director of AMCON whose tenure was due to expire in November this year, has been replaced by Ahmed Lawan Kuru.

While the new executive directors (EDs) of the corporation are  Kola Ayeye, Eberechukwu Uneze and Aminu Ismail.

The three new EDs shall be replacing Mofoluke Benedicta Dosumu, Hewitt Adegboyega Benson and Abbas Mohammed Jega, who were appointed alongside Chike-Obi in 2010.

Before his appointment as the new chief executive of AMCON, Kuru was the immediate past Group Managing Director of Enterprise Bank Limited before it was sold to Heritage Bank Limited by AMCON.

Read More: thisdaylive

Oil Workers’ Protest Paralyzed Activities At AMCON

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Business activities were on Monday paralyzed at the Asset Management Corporation of Nigeria by oil workers under the aegis of SeaWolf Oil Field.

The disengaged oil workers, who barricaded the entrance of the office were protesting over the failure of AMCON to pay their entitlements which they claimed was in the range of N5bn to N7bn.

The workers lamented that despite assurance that the corporation would pay their entitlements after taking over their company-Offshore Management Services, such promises had yet to be fulfilled.

Spokesman for the protesters, Mr. Victor Ekundayo said that the agreement reached with the corporation was that their salaries would be paid by AMCON following the takeover of the company two years ago.

He said,” We have had several meetings with the Ministry of Petroleum, Labour and Productivity. Ministry of Finance had to intervene, insisting that AMCON pay the claims. AMCON even called us to say they will pay, yet nothing has been done.

“AMCON took over our facility in 2013 because SeaWolf was indebted to a lot of commercial banks. They did so without settling the workers.

“The standard in the oil and gas is that for whatever reason a company is taken, workers must be paid their terminal benefits, which AMCON has refused to do…”

Read More: vanguardngr