KPMG to audit Arik, AMCON says

Arik Airline
Arik Airline

The new management of Arik Airlines has appointed international audit firm, KPMG, to undertake a forensic audit of the finances of the airline.

Part of KPMG’s mandate is to ascertain the true status of the airline’s finances.

A statement released by the Asset Management Corporation of Nigeria, AMCON, Monday, said the review will among other objectives cover the position of the company’s asset and liabilities; their utilisation; recording and utilisation of loans; and propriety of third party transactions.

Other objectives of the audit exercise, according to the statement, include looking into fraud controls over Procure to Pay (PtP); agents, business partners, and financial reporting; and Arik Airline’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,” the statement said.

“We need to do that because the outcome will help us plug the loopholes and stabilise the airline.”

The statement noted that the overall purpose was to identify what went wrong with Arik, Nigeria’s largest airline, to enable the new management bring it back to full operations.

AMCON had on February 9 taken over the airline’s operations following complaints of huge indebtedness to various creditors and the frequent interruptions in its operations.

The organisation on Sunday announced that the airline was in a “huge mess” and was poorly managed


DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD:DIABETES Is CURABLE! Don't Let It Threaten You! To NORMALIZE Your Blood Sugar In 21Days For Life, Click Here!!!.


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.