Heads to roll in Aero over diversion of funds

Heads may soon start to roll in the troubled Aero Contractors following the commencement of forensic audit of the airline by the Federal Government. It was also gathered that the airline’s debts to Asset Management Company of Nigeria, AMCON, which took over its control in 2011, had grown from N14bn from five years ago to N20bin in 2016. At N14bn, AMCON had 60 per cent shares in the airline and with the current N20bn figure, an industry source said AMCON might have taken over the running and assets of the airline 100 per cent.

Also, government has appointed the past Managing Director of Maevis Nigeria Limited, a former concessionaire with the Federal Airports Authority of Nigeria, FAAN, on aeronautic and non-aeronautic charges, Mr. Tunde Fagbemi as Managing Director of Aero with immediate effect. Fagbemi, our correspondent gathered, resumed work on Friday. It was also gathered that Federal Government may be tinkering with the idea of turning the airline into the country’s national carrier. Minister of State for Aviation, Hadi Sirika had assured in Abuja last Friday that government would soon start implementation of recommendations on the establishment of a new national carrier, which was submitted to it last August. A source close to the airline confided in our correspondent yesterday that the Federal Government through AMCON had engaged the services of a reputable accounting firm to undertake a forensic audit of Aero’s accounts in the past five years to know its financial status. The source said the audit may consume some management staff, brought in by AMCON when it took over its control as well as other internal staff.

The source added that part of the documents to be used for the audit were submitted to AMCON by the two leading industry unions; National Union of Air Transport Employees, NUATE, and Air Transport Services Senior Staff Association of Nigeria, ATSSSAN, who had exposed some shady deals in the airline in recent time. The documents submitted to the government by the unions alleged that the immediate past management and board of the airline contributed to its deplorable condition. The unions alleged further that Oceanic Capital, a consultant to the airline acquired seven planes in which only six were delivered and leased them back to Aero through Oceanic Leasing Company at $12m each. But, the unions said rather than the $12m claim by Oceanic Capital, the website of Arizona, the firm where the aircraft were purchased, indicated $4m each for the plane.

The documents added that the past management paid $250,000 twice in favour of one Bayo for negotiation and finalisation with AMCON, which also reflected on its invoices as general vendor for consultancy fees. When contacted, the Media Consultant to the airline, Mr. Simon Tumba, confirmed the appointment of Fagbemi as the new Managing Director. He also confirmed that the debts of Aero against AMCON had grown to N20bn. Tumba, however, declined to confirm the alleged plan by government to take over the airline and turn it into a national carrier.

He said: “I don’t have the information about the plan of the Federal Government to make the airline a national carrier, but what I can confirm to you is that Mr. Tunde Fagbemi has been appointed the Managing Director of the airline. “On the debts of the airline to AMCON, what I can say is that government has taken over the management of the airline as a creditor. “When Aero owed AMCON N14bn, the percentage of AMCON in the airline then was 60 per cent, but now, the debts have grown to N20bn. I don’t know if that means 100 per cent takeover, but you can do the calculation yourself.

Source: National Mirror