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FG may convert Arik, Aero Contractors to national carriers Over Unpaid Debt…..

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The Asset Management and Corporation of Nigeria has said Arik and Aero Contractors airlines may be merged and converted to a national carrier.

The AMCON Managing Director/Chief Executive Officer, Gbenga Alade, stated this on Monday at an interactive session with media executives in Lagos.

According to Alade, both Arik and Aero Contractor are owing so much money that they may not be able to pay.

He stated that the corporation presented the idea of converting Arik and Aero Contractor to the former aviation minister but it was rejected.

“The former management of AMCON presented the idea of converting Arik and Aero to a national carrier. But the former aviation minister did not buy the idea. We will present it again because that is the best option.

“Unfortunately, the special purpose vehicle that was created by the former management of AMCON for the conversion of Arik and Aero to a national carrier had been sold. But we can create another SPV this,” he explained.

Recall that the former Minister of Aviation, Hadi Sirika, launched the Nigeria Air three days before the end of former President Muhammadu Buhari’s administration.

The development had elicited concerns among stakeholders over the ownership arrangement which gave Ethiopian Airlines a 49 per cent equity stake in the company.

The Federal Government had a 5 per cent equity, while a consortium of three Nigerian investors had 46 per cent.

Reacting to the deal in June 2023, the House of Representatives asked the Federal Government to suspend the operations of Nigeria Air, describing it as a fraud.

In August 2023, the incumbent minister, Festus Keyamo announced that the national carrier project was suspended till further notice.

Keyamo said, “It remains suspended. It was never Air Nigeria. It was not Air Nigeria. That’s the truth. It was only painted Nigeria Air. It was Ethiopian Airlines trying to flag our flag.

“If it is so, why not allow our local plane to fly our flag? So nobody should dispute that it was Nigeria Air.

“Air Nigeria must be indigenous, must be wholly Nigerian, and must be for the full benefits of Nigeria, not that 50 per cent of the profit is for another country.”

Recently, a Federal High Court sitting in Lagos halted the sale of Nigeria Air to Ethiopian Airlines.

The court declared null and void, the sale of the shares of Nigeria Air to Ethiopian Airlines after determining the issues in the suit.

Justice Ambrose Lewis-Allagoa ordered that the Federal Government’s plans to establish a national carrier, Nigeria Air, should be halted.

The judgment was delivered in favour of the Registered Trustees of the Airline Operators of Nigeria and five other aviation industry stakeholders.

At the briefing on Monday, Alade said the present status of Arik and Aero Contractors had been giving him sleepless nights.

“Believe me, it is a very difficult problem to resolve, and it is giving me sleepless nights, particularly Arik.

“Arik is owing so much that they cannot pay,” he stated.

Speaking further, Alade said, “There is a way out. We have met all their major international creditors. Afreximbank is one of them. They (Arik) are owing Afreximbank about $52m.”

After negotiations, he said the airline was only willing to take $8.5m out of the $52m.

“However, where will that $8.5m come from? Where? AMCON doesn’t have money of his own to put there? And then they negotiated and said, okay, ‘let’s take some of the engines of those things away in full and final settlement’. And the truth is that, if they took those engines away, Arik is finished.

“But we said ‘no, we cannot allow you to take it away. Let AMCON give you a kind of bank guarantee. And we will stretch it so that three planes are flying now and by the Lord’s grace, by February next year, we want to make seven planes fly for Arik,” he stated.

The PUNCH recalls that the Nigerian Airspace Management Agency grounded aircraft owned by Arik over a court order instituted by the airline’s creditor and billionaire businessman, Arthur Eze.

Eze had approached the court in protest against his unpaid $2.5m by the founder of Arik Air, Johnson Arumemi-Ikhide.

In a statement by the spokesperson of NAMA, Abdullahi Musa, the agency said the development stemmed from an enforcement action by the FCT High Court on July 19, 2024, which involved attaching Arik’s planes to secure the debt.

In 2016, AMCON took over the management of Aero Contractors after it dissolved the board of the company, appointing a manager to run the affairs of the company in an interim capacity.

AMCON said in a statement by its media consultancy firm that the decision to take over the management of the company was in furtherance of its responsibility of acquiring eligible bank assets and putting them to economic use in a profitable manner.

Similarly, Arik Air, founded by Mr Arumemi Johnson, was taken over by AMCON in 2017 after the carrier’s management failed to honour its debt obligation running into several billions of naira.

AMCON had taken over debts from local banks owed by Arik.

Last year, the corporation asked the owners of Arik to present a credible debt resolution plan to the bad debts manager if it hopes to recover the company from the Federal Government.

AMCON’s asset recovery efforts

In a move to recover outstanding debts of nearly N5tn, Alade announced plans to engage international asset tracers to locate and recover assets hidden by recalcitrant debtors offshore including those masqueraded under special purpose vehicles.

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HAPPENING NOW: LG election holds in Rivers despite police absence •PHOTOS

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The local government election has commenced in Rivers State, despite the absence of police to man the process.

 

Our source hinted that sensitive materials have been distributed across the local government areas.

 

 

The state governor, Siminalayi Fubara, has vowed to conduct the local government election amid tensions in the state.

 

 

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Nigerian Police Refund N1million Cash Extorted From Corps Members In Lagos As Officers Undergo Probe

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Three members of the National Youth Service Corps (NYSC) have been refunded N1million, which was allegedly extorted by four police officers in Surulere area of Lagos State.

 

The officers reportedly demanded the money after the corps members failed to provide a physical copy of a driver’s licence.

 

 

An X user, Oluyemi Fasipe, had shared details of the incident, stating that one of the corps members was also forced to transfer Bitcoin worth $842 to the officers.

 

 

The Lagos Police Public Relations Officer, Benjamin Hundeyin, confirmed the officers involved had been identified and were undergoing interrogation.

 

“The rogue men of the Area C command of the @LagosPoliceNG who extorted over 1 million naira from the corp members have refunded the money,” Fasipe tweeted on Friday, October 4.

 

 

Hundeyin had stated that the outcome of the trial would determine the culpability of the officers, which could lead to their dismissal. Fasipe also expressed appreciation for the efforts of both Hundeyin and the Lagos State NYSC office in facilitating the refund.

 

He further added, “I like to appreciate @BenHundeyin and the @officialnyscng Lagos State for their efforts too. I also like to use the opportunity to say hello to my friend in Delta State, @Brightgoldenboy.”

 

 

 

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FBI Requests EFCC’s Assistance To Arrest Two Nigerians, Shodiya Babatunde and Yinka Ahmed For Stealing $13Million From American Healthcare Provider…

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The Federal Bureau of Investigation has urged the Economic and Financial Crimes Commission to help track down and apprehend two Nigerian fugitives wanted over a multimillion-dollar healthcare scheme in the United States.

 

 

Babatunde Shodiya and Yinka Jamiu were indicted on September 25 by a grand jury at the U.S. District Court of Minnesota over their involvement in a scheme that saw several healthcare providers lose $13 million between October 2020 and 2024.

 

American officials said the suspects are citizens and residents of Nigeria and urged Nigeria’s frontline anti-graft office to help locate and take them into custody, according to officials familiar with the matter who briefed Peoples Gazette.

 

 

The U.S. officials have reached out to us and they said the suspects are hiding in the country,” an EFCC agent said under anonymity to comment on an ongoing investigation. “We have an obligation to honour the request of our U.S. counterparts as part of our longstanding collaboration to combat cross-border crimes.”

 

Messrs Shodiya and Jamiu targeted at least four Minnesota-based health service providers and tricked them into paying $13 million to a manipulated account rather than the intended beneficiaries.

 

 

Knowing that Optum Pay was the preferred payment system that major health service providers adopted in Minnesota, Messrs Shodiya and Jamiu created a fake domain to divert payment for health plans into an account they set up.

 

After creating a fake domain, fairviewhospitals.org, they opened email accounts in the name of the hospital’s CEO, executive vice-president and business analyst.

 

 

With the fake addresses, Messrs Shodiya and Jamiu sent emails to Fairview employees directing them to “access an Internet link and provide information,” including their usernames and passwords.

 

From the information supplied by the unsuspecting staff, the duo gained access to Fairview’s Optum Pay account and changed the bank information to another account.

 

“Defendants Babatunde and Ahmed then changed the banking information on vendor accounts in order to direct third-party vendors to transfer funds intended for Fairview Health into unauthorised bank accounts controlled by the defendants and their co-conspirators,” the indictment sheet stated.

 

 

While posing as Fairview Health CEO and executives, the suspects contacted vendor companies, including Blue Cross Blue Shield, to update their payment accounts with new ones.

 

“On or about July 29, 2020, Blue Cross Blue Shield of Minnesota made approximately 18 wire transfers totalling nearly $8 million to an account controlled by the defendants,” stated the indictment.

 

Company B, another vendor whose identity the FBI shielded, transferred over $1 million to the fraudulent account on November 19, 2020.

 

 

Company A, a vendor health plan provider, deposited $2.8 million into the fake account in two tranches: $1.4 million on November 25, 2020, and the second $1.4 million on December 4, 2020.

 

For impersonating Fairview’s CEO and other business executives on June 20, 2020, Mr Shodiya was facing additional charges of aggravated identity theft asides the wire fraud charges.

 

The duo will forfeit any money and property linked to the proceeds of the fraud to the U.S. government.

 

If the EFCC successfully tracks down Mr Shodiya and Mr Jamiu, they will be extradited to the U.S. to stand trial.

 

 

Peoples Gazette

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