KPMG to carry out forensic audit on Arik Air

As part of efforts to ascertain the true status of the finances of embattled Arik Air, the new management of the airline, Assets Management Corporation of Nigeria (AMCON) has appointed KPMG, world-class financial experts to undertake a forensic and diagnostic audit of the finances of the company.

A statement by the airline stated that the review would among other objectives cover the position of assets and liabilities and their utilization, recording and utilization 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 stabilize the airline” the statement reads.
The management said that the intention is to identify what went wrong with Arik Air to enable the new management bring it back to full operations.

It would be recalled that AMCON intervened 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.


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