The new management of Arik Air has
announced the appointment of the firm of KPMG to undertake a forensic
and diagnostic audit of the finances of the airline to ascertain the
true state of its finances.
According to a statement by the new
management of the carrier on Tuesday, the review will among other
objectives cover the position of assets and liabilities and their
utilisation; recording and utilisation of loans; and propriety of third
party transactions. It will also cover fraud controls over
procurement, agents and business partners and financial reporting, and
Arik Air’s financial position as of January 31, 2017.
The management said the report of the
audit, which is expected to be delivered within 12 weeks, would also
help the government to take necessary steps, either corrective or
proactive, to reposition the airline.
The Federal Government had on Thursday,
February 9, 2017, intervened in the airline’s operations following
complaints of its huge indebtedness to various creditors running into
over N300bn, frequent interruptions in its operations and concern for
safety and security.
The statement said, “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.”
Copyright PUNCH.
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