Following the appointment of KPMG by the new management of Arik Air, the audit firm is set to investigate the position of the airline’s assets, liabilities and loans and their utilisation with the propriety of third party transactions, among others, as of January 31, 2017.
The management disclosed that 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.
Earlier, the Federal Government had 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.
“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.
