KPMG To Carry Out Forensic Audit On Arik Air

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Yemisi Izuora

The new management of Arik airlines has appointed KPMG, world-class financial experts to undertake a forensic and diagnostic audit of the airlines finances.

The move is to ascertain the true status of the finances of the airline,

A statement by the airline stated that the review would among other objectives cover the position of assets and liabilities and their utilisation, recording and utilisation 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.

According to the statement, 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. We need to do that because the outcome will help us plug the loopholes and stabilise the airline” the statement said.

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

The Federal Government last thursday moved to save the airline from total collapse when it took over its management via the Assets Management Corporation of Nigeria(AMCON).

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