Two months after Arik Airlines was taken over by the Asset Management Corporation of Nigeria (AMCON), it has been discovered that the management of the airline under the leadership of its founder, Johnson Arumemi-Ikhide, owed about N387 billion both locally and internationally, before the federal government took over.The figure was obtained in an official document, which lawyers to AMCON filed in support of the motion on notice sought amongst others an interlocutory injunctive orders to restrain the erstwhile shareholders and the directors of Arik Airlines from interfering with, the promoter and the current management of Arik led by Capt. Roy Ukpebo Ilegbodu, under the receivership of Mr. Opasanya, SAN.Some of the trade creditors and service providers in the swollen Ariks debt profile as contained in the document include: 418,893,067.97 for insurance policy; 4,586,860,471.50 for pension remittance; 31,000,000.00 for Lufthansa Technik Group; 28,346,678,438.00 for Zenith; 9,447,673,924.00 for Access Bank; 632,490,151.40 for Amadeus Marketing, Nigeria; 3,800,000.00 for Marriot and Best Western Hotels amongst others who yet to be settled.Apart from the amount in figures, the submission to the court listed a long list of decay, unprofessional practice, huge indebtedness, non-existent records, lack of corporate governance among other vices that bedeviled Arik when it was taken over by the government debt recovery agency.The document, in support of the plaintiffs motion on notice for interlocutory injunction dated 8th February, 2017, disclosed that the former management of Arik Airlines were basically gambling with the lives of millions of people that patronize the airline because it did not care about safety, due to the fact that critical issues such as having a simulator, which ensures that Arik pilots undertake mandatory trainings as required to improve their efficiency were non-existent.It also showed that, the salaries of the expatriate and local staff of Arik were unpaid since October 2016 and July 2016 respectively while the airline owed premiums on its insurance policy because the previous management of Arik took insurance on a monthly basis instead of annually in accordance with aviation global best practice for the insurance of aviation assets.Facts gathered from the records equally showed that Arik operations would have been grounded indefinitely if AMCON did not intervene as the insurance policy of Arik was to lapse on February 10, 2017. As at that date, Arik owe a total of N418, 893,067.97 in arrears of unpaid premium just as its employees health insurance had also expired and as a result, both the pilots and other members of staff of the airline were to halt operations as well.It has also come to the fore, as pointed out in the document, that the airline failed to remit pension contributions of its employees despite making the necessary pension deductions from their salaries for which the National Pension Commission had written to demand over N4billion being the outstanding pension remittance. Aside from that, Arik also owe Lufthansa Technik Group, the company responsible for the maintenance of the airplanes a whopping 31 million Euros just to mention a few.According to the document, the insurance policy for the 1st Defendants Airplanes was to lapse on 10.02.17 at which date the 1st Defendant was owing N418,893,067.97 (Four Hundred and Eighteen Million Eight Hundred and Ninety Three Thousand Sixty Seven Naira Ninety Seven Kobo) as arrears of unpaid premium; the 1st Defendants employees health insurance had expired, and as a result, the Pilots and members of staff of the 1st Defendant threatened to halt operations; the 1st Defendant failed to remit pension contributions of its employees despite making the necessary pension deductions from the salaries of the employees.Now produced and marked as Exhibit 1 is a demand letter from The National Pension Commission for the sum of N4,586,860,471.50(Four Billion, Five Hundred and Eighty Six Million, Eight Hundred and Sixty Thousand, Four Hundred and Seventy One Naira, Fifty Kobo) being the outstanding pension remittance. Lufthansa Technik Group, the company responsible for the maintenance of the 1st Defendants airplanes was being owed about 31,000,000.00 (Thirty One Million Euros); the 1st Defendant owed and still owes Zenith Bank and Access Bank the sum of N28,346,678,438.00 (Twenty Eight Billion, Three Hundred and Forty Six Million, Six Hundred and Seventy Eight Thousand, Four Hundred and Thirty Eight Naira) and N9,447,673,924.00 (Nine Billion, Four Hundred and Forty Seven Million, Six Hundred and Seventy Three Thousand, Nine Hundred and Twenty Four Naira) respectively, it stated.
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