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Auditor Uncovers More Arik Debts

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Airline
  • Auditor Uncovers More Arik Debts

Indications have emerged that the KPMG, the firm appointed to audit Arik Air following its takeover by the Asset management Corporation of Nigeria, has uncovered more debts owed by the airline.

Sources at the auditing process told our correspondent on Friday that the 12 weeks given to the firm to complete the audit might no longer be feasible as fresh debts, both local and foreign, had continuously been uncovered since the process began.

One of the sources also said more claims were being uncovered, making it difficult for the KPMG to complete its audit in good time.

The new management of Arik Air in February announced the appointment of the KPMG to undertake a forensic and diagnostic audit of the finances of the airline to ascertain the true state of its finances, few days after it came under receivership.

AMCON had said that the review would among other cover assets and liabilities and their utilisation; recording and utilisation of loans; and propriety of third party transactions as well as fraud controls over procurement, agents and business partners and financial reporting, and airline’s financial position as of January 31, 2017.

The management said the report of the audit, which was expected to be presented in 12 weeks, would also help the government to take necessary steps, either corrective or proactive, to reposition the airline.

The Receiver Manager of Arik Air, Mr. Oluseye Opasanya, last month said in an affidavit filed in support of the airline’s receivership by AMCON, before Justice Muhammed Idris of a Federal High Court in Lagos, that the embattled airline was indebted to its trade and finance creditors to the tune of N375bn.

The spokesperson for the airline, Mr. Simon Tumba, told our correspondent that the KPMG was still working and could not give the timeline for the completion of the audit.

“There is no timeline at the moment for the completion of the report. The whole idea is to combine all the debts and give a fair status of the company in terms of what it owes and what it is being owed,” he said.

Recently, there were speculations that the airline might be given to foreign investors or liquidated. But Tumba dismissed the report, saying the Federal Government had not decided on what to do with the airline.

“AMCON’s plan for Arik will depend on what the KPMG will find from the audit of the airline’s operations,” he said.

The spokesman for AMCON, Mr. Jude Nwauzor, had earlier told journalists that the corporation underestimated the rot in the airline when it took over following a court injunction.

“Left to us, we will never touch Arik; we were mandated to take it over because there was no other vehicle the government would have used to intervene,” he said.

He said that since the takeover in February, AMCON had injected N1.5bn into the airline, adding that the corporation would not keep the airline for a long time.

An aviation expert and Chief Executive Officer of Centurion Security and Safety Consults, Group Capt. John Ojikutu (retd), said that in the event of an outright sale, AMCON must be mindful not to sell the airline to a commercial competitor in the industry.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

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Aliko Dangote Remains Africa’s Richest Man With $12.1 Billion Net Worth -Forbes

Nigerian industrialist, Aliko Dangote, is Africa’s richest person for the tenth year in a row.

In the Forbes Africa latest billionaires list, Dangote’s total net worth stood at $12.1 billion, a $2 billion increment when compared to last year. Thanks to the 30 percent increase in the price of Dangote Cement share.

Nassef Sawiris of Egypt followed Dangote with $8.5 billion net worth with the majority of his investments coming from construction and other investments.

In third place was Nicky Oppenheimer of South Africa with an $8 billion total net worth.

Mike Adenuga and Abdulsamad Rabio, the two Nigerians, came fifth and sixth with $6.3 billion and $5.5 billion net worth, respectively.Forbes Africa's billionaires list

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Portland Paints, Chemical and Allied Products Plc Agreed to Merge

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Portland Paints

Portland Paints, Chemical and Allied Products Plc Agreed to Merge

Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.

In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).

Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.

“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.

“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

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Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17

Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.

The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.

It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.

The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.

A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.

In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.

“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”

Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.

Also, read Transcorp Plc Acquires FGN’s 100% Equity in Afam Power for N105 Billion

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