KPMG To Undertake Audit Of Arik Air

The Asset Management Company of Nigeria, AMCON, has hired KPMG financial experts, to undertake a forensic and diagnostic audit of the finances of the Arik air airline to ascertain the true position of its finances.

This was made known in a statement released by AMCON on Monday.

According to the management company, the audit, will enable them know with verifiable facts, what went wrong with the airline and plug the loopholes towards stabilizing the airline.

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The statement reads “The new management of Arik Airlines has appointed KPMG, world-class financial experts to undertake a forensic and diagnostic audit of the finances of the airline to ascertain the true status of its finances.

“The audit review will 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. The report is expected to be delivered within 12 weeks.

“We hired KPMG to look into the financials of Arik with a fine 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.

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

Following daunting complaints of huge indebtedness of the Arik airline to various creditors and the frequent interruptions in its operations, as well as the concern of safety and security, the Federal Government last week, took over the management of the distressed airline.

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