The receiver-manager of Arik Air (W3, Lagos) has dismissed as a smear campaign, his detention at the weekend in connection with the alleged misappropriation and diversion of NGN120 billion naira (USD182.6 million) at the airline.

Omokide Kamilu Alaba - appointed by the Asset Management Corporation of Nigeria (AMCON) to manage the airline in receivership - was reportedly detained on Saturday by Nigeria's Economic and Financial Crimes Commission (EFCC).

According to PUNCH newspaper, Omokide was detained alongside pilot Samuel Caulcrick in connection with the alleged illegal sale and tearing down of a USD41 million CRJ1000ER, 5N-JEE (msn 19037), leased by Arik Air from JEM Leasing. As reported, the lessor had called for a criminal investigation into claims by Arik Air that it was party to any decision to scrap the aircraft. This came after Arik Air said it was removing the aircraft from its fleet, claiming that JEM Leasing and financier Export Development Canada had decided to sell it.

A statement issued by SY&T Communications on behalf of Arik Air under Alaba said the media reports "unjustifiably and without verification of the facts" linked him to financial fraud within the airline.

The statement, shared with ch-aviation, said the investigation was based on a petition to the EFCC by Arik Air solicitor Femi Falana, in which he accused Alaba - who has overseen Arik Air since 2017 - of financial mismanagement, diversion of monies, sale of assets, and misappropriation of funds belonging to the airline.

The airline said the petition by Falana was instigated by Johnson Arumemi Ikhide, the founder and majority shareholder of Arik, who owed AMCON about NGN240 billion (USD365.3 million) as of May 31, 2023. Ikhide had guaranteed and was, therefore, personally liable for the debt.

"The wild allegations of the misappropriation of NGN120 billion in the petition are manifestly and patently false and amount to no more than well-concocted lies as part of a deliberate campaign of calumny against the receiver-manager to abort the ongoing receivership in Arik. Indeed, even on the face of the petition, the claims do not add up to NGN120 billion. It is made up as a publicity stunt," the airline said.

Arik Air also disputed the allegations that Alaba was guilty of "underhand sales of assets" [...] "including a number of CRJ aircraft. "These aircraft were never owned by Arik. They were simply leased by Arik. The planes were owned by JEM Leasing Limited and JEM Air Limited (both foreign companies) and financed by Export Development Canada (a Crown entity of the Government of Canada) (EDC). These two foreign companies and EDC were the principal actors in the sale of the said aircraft."

Arik stated: "Furthermore, the petition raises concerns about tearing down an B737-700 registered as 5N-MJI [msn 28640], which had been abandoned and cannibalised in Malta International since 2013 by Arik under the then leadership of Johnson and years before the receivership commenced. This was a professionally taken decision on an aircraft that was beyond economic repair (BER) and stood the chance of being sent to the graveyard by the authorities of the relevant airport in Malta. The pre-tear-down valuation of the aircraft by McLarens [...] valued the aircraft at USD1.5 million. This was, however, seized by Lufthansa Technik over Arik's indebtedness incurred pre-receivership."

It added: "The receiver-manager firmly asserts his unwavering determination to steadfastly defend the delicately constructed integrity he has nurtured, firmly refusing to permit any baseless allegations to besmirch it. He assures that he and all staff of Arik Air Limited (in receiver[ship]) will accord EFCC maximum cooperation".

On inquiry from ch-aviation, an EDC spokesperson issued the following statement: "On June 25, 2014, EDC provided financing to JEM Leasing Limited as the borrower for the purchase of several aircraft from Bombardier Aerospace to be leased to and operated by Arik Air Limited. EDC is exercising its contractual rights as a creditor through the sale of the aircraft owned by JEM Leasing Limited. EDC would like to clarify that JEM Leasing Limited is the owner of the aircraft. As per AMCON's press release dated June 2, 2023, JEM Leasing Limited entered into an agreement to sell the aircraft. EDC is aware of the recent media reports and is actively monitoring the situation."

According to Nigerian Flight Deck, on June 2, the EFCC paid an unannounced visit to Arik Air following allegations that a CRJ1000ER was being stripped down to be parted out. An unnamed source claimed that eight aircraft in the Arik Air hangar had no instrument panels and were missing avionics. Engines were also missing on DHC-8-Q400s, CRJ900ERs, and B737s.

It was allegedly discovered that Arik Air management under the receivership was taking home lucrative salaries that belied the airline's current realities, the report claimed.