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Tag: Asset Management Company of Nigeria (AMCON)

  • ‘Why Tinubu should intervene in AMCON, firm dispute’

    ‘Why Tinubu should intervene in AMCON, firm dispute’

    President Bola Tinubu has been urged to intervene in the dispute involving Asset Management Company of Nigeria (AMCON) and Suru Worldwide Ventures Nigeria Limited.

    In a statement,  an analyst, Mr. Tokede Gbadebo, urged AMCON  to reconcile with aggrieved business owners and facilitate ease of doing business in  the spirit of the renewed hope agenda of the President  Tinubu-led government.

    This followed the  long running battle between AMCON and Suru Worldwide Ventures Nigeria Limited,owners and operators of Best Western Hotel,Lagos.

    A  Federal High Court in Lagos had ordered the takeover of the company’s property by AMCON for not paying the loan obtained from the defunct Oceanic Bank. 

    But the Supreme Court voided AMCON’s  takeover of the property on February 16, 2024 and dismissed the agency’s appeal challenging the judgment of the Court of Appeal in favour of the respondent(Suru Worldwide Venture).

    Despite the Apex court’s rulings on the case,  AMCON  is still in possession of the property 10 months after.

    Nevertheless, Gbadebo has called on the President to ensure the Chairman of AMCON  reviews the case and seek alternative ways of resolving the issues involving both parties.

    Cautioning against portraying a bad image of the country,  Gbadebo stressed the importance of resolving the matter to prove to foreign investors that the nation’s institution are business-friendly.

    He said: “In the spirit of a better Nigeria, the new management of AMCON should open a window of discussion with Suru Worldwide Venture Limited now. Such should include allowing the original owners of the hotel to run it while paying the acclaimed debt.

    It doesn’t make economic sense to leave the property that is supposed to generate the money to pay the debt under lock and key for over five years to the detriment of all concerns.

    “Government agencies should help facilitate ease of doing business in Nigeria not obstruct them. While Mr. President is busy calling for foreign investors to come to invest in Nigeria, he must prove to the global community that the institutions we have here are enablers and business-friendly, not killers of business.

    “Unfortunately, 10 months after the Supreme Court judgment and the exit of Kuru from AMCON, nothing concrete has been done to ensure that the hotel is restored back to the owner.

    This further exposes the owners to more debts, depriving Nigerians of job opportunities and tax revenues to the government.

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    We want President Tinubu, who loves equity and justice to intervene by ordering alternative dispute resolution.

    “AMCON under President Tinubu must be refocused from being an avenue for the acquisition of personal gains to one committed to helping the economy grow.

    This can only be achieved when justice is allowed to reign in spirit and truth.”

    He added that the plight of Suru  Ventures reminds of  the acquisition of Arik Air, for which the Economic and Financial Crime Commission (EFCC) recently arraigned former AMCON boss Ahmed Kuru before Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos, on a six-court charge of alleged stealing of property belonging to the airline and abuse of office.

    “In  the case of Suru Worldwide Ventures, findings revealed that a foreign firm was brought to manage the hotel on their behalf while they stayed behind the scenes as the real owners,” he said.

  • NUATE commends airline for recalling 69 disengaged workers

    NUATE commends airline for recalling 69 disengaged workers

    The National Union of Air Transport Employees ( NUATE ) on Friday commended the management of Aero Contractors Limited for recalling 69 workers earlier declared redundant by the airline.

    Mr Olayinka Abioye, General Secretary, NUATE, made this known in Lagos that the unions in the aviation sector were impressed by the efforts of the Aero management to reposition the airline.

    Abioye confirmed that 41 of the recalled workers were members of NUATE while the others belonged to the Air Transport Senior Staff Services Association of Nigeria ( ATSSSAN ) and the National Association of Aircraft Pilots and Engineers ( NAAPE ).

    He noted that the airline, under the management of Capt. Ado Sanusi, was being revived gradually after being taken over by the Asset Management Company of Nigeria ( AMCON ) due to its huge debt profile.

    According to him, when Sanusi came on board, over 600 Aero workers were declared redundant in March 2017 as a way of keeping the airline afloat, despite opposition from the unions.

    Abioye said the management had, however, continued to forge ahead, culminating in the recent successful conduct of C-Check on Boeing B737-500 at the airline’s maintenance facility at the Murtala Muhammed Airport, Lagos.

    He said that based on this, the management had started recalling some of the disengaged workers to the delight of the unions.

    “The management, in its wisdom and which we appreciate, have decided that those who are currently on contract will be reintegrated into the system as if they have never been declared redundant.

    “The second leg of that is that a sizeable number of those still outside will be recalled, and by March, another sizeable number will be recalled.

    “This tentatively means that over two-third of the disengaged workers would have been recalled into Aero, which is a good one for us,” Abioye said.

    He said the unions and the management would continue to work together as responsible social partners to stabilise and sustain Aero Contractors, so that the airline could reclaim its rightful place as the number one domestic airline.

    NAN

  • Arik Air files N20bn suit against FG, Ethiopian Airlines

    Arik Air files N20bn suit against FG, Ethiopian Airlines

    Arik Air Limited has filled a N20 billion suit against the Federal Government and Ethiopian Airlines over recent claims in the media that they were negotiating the takeover of the airline.

    The suit was instituted by the airline at the Federal High Court, Lagos against Ethiopian Airlines, the Federal Ministry of Transportation and the Attorney General of the Federation.

    A copy of the suit which was filed on Sept.6 by Arik Air’s counsel, Mr Babajide Koku (SAN), Mr Chukwuemeka Nwigwe and Mrs Ezinne Emedom, was obtained by the News Agency of Nigeria (NAN) on Sunday in Lagos.

    In its statement of claim supported by a 20 paragraph affidavit deposed to by Mr Chris Ndulue, a Director with Arik Air, the plaintiff asked the court to restrain the first and second defendants from further negotiations on its takeover.

    The plaintiff noted that the Asset Management Company of Nigeria ( AMCON ) had taken over the airline on Feb. 8 which was challenged by its management via two suits already pending before the Federal High Court, Lagos.

    According to the plaintiff, the suits numbers are FHC/L/CS/827/17 and FHC/L/CS/826/17, adding that the negotiations by the defendants will render the outcome of the suits nurgatory.

    “The plaintiff avers that the agreement of the second defendant with the first defendant will be wide ranging and intricately affect every aspect of the plaintiff herein, including but not limited to the day to day running technical as well as financial management which will affect the plaintiff as being the largest domestic and regional airline in Nigeria.

    “The plaintiff further avers that the action taken by the first and second defendants will have a negative effect on the country’s image as the plaintiff being the largest airline will be pawned over to another country for management,” it said.

    The plaintiff also averred that the negotiations had caused undue hardship and irreparable damage to the Arik Air brand and ongoing investment discussions as well as unbearable distress to the airline’s shareholders and directors.

    It, therefore, asked the court to declare the negotiations null and void because the Ministry of Transportation had no power to transfer the management of the airline to Ethiopian Airlines while the suits over the takeover are pending.

    The plaintiff also asked the court for an order directing the Attorney General of the Federation to ensure the investigation of Ethiopian Airlines by the appropriate authorities for inducing and interfering in the administration of justice in the pending suits.

    It added that if found culpable, the airline should be charged to court for criminal contempt contrary to Section 133 (4) and (9) of the Criminal Code Laws of Lagos State, Cap C17,Laws of Lagos State of Nigeria, 2004.

    The plaintiff also asked the court for an order compelling the Inspector General of Police to investigate the actions of the second defendant.

    It further asked the court for N20 billion being punitive damages against the first defendant for inducing or partaking in the interference of the rights of the plaintiff and the administration of justice.

    NAN reports that the suit is yet to be assigned to any judge and no date has been fixed for hearing.

  • Arik Air: We have stabilised operations — New management

    Arik Air: We have stabilised operations — New management

    The Managing Director of Arik Air, Capt. Roy Ilegbodu, on Friday, said the operations of the airline had been stabilised following the intervention of the Asset Management Company of Nigeria (AMCON).

    Briefing journalists in Lagos, Ilegbodu commended the measures put in place by AMCON to revive the airline within the last few months.

    “The airline business is complex and that complexity means that a lot of attention is needed to keep it efficient and safe.

    “In the past few months since we assumed office, the new management has been able to enhance the value of the airline, improve customer experience, and sustained its safety procedures,’’ he said.

    Ilegbodu said that Arik Air was not exempted from the challenges confronting all the airlines, noting that the new management had been able to come out from the challenges to bring stability to its operations.

    “We have improved our on-time performance which I think is a great feat to the airline.

    “We have resumed flight operations in some West Africa countries and we have worked very hard to regain customer confidence which had been battered before we resumed,’’ Ilegbodu added.

    According to him, the airline has also been able to pay up all its workers salaries, up-to-date.

    “We can’t use our workers for 30 days and not pay them; as you all know, this is a safety industry.

    “For instance, how do you want a pilot to feel if he is not paid his salary for two months?
    “All he will be thinking of is how he will be able to survive without pay; thereby keeping the lives of the passengers and crew in danger,’’ he said.

    Ilegbodu said that at the moment, the airline had resumed its flight operations to Senegal, Accra and Togo.

    “We will eventually expand on our operations as time goes on. What we did when we came in was to shrink the operations to a manageable size and we are now expanding on our routes.

    “Since Nigeria is a bigger market in the aviation industry business, we presently have 14 aircraft in our fleet; three have gone for C- Checks, while 11 aircraft are in operation.

    “We can now boast of approximately 4,000 passengers daily in our various flight operations,’’ he said.

    The managing director said most of the challenges it was facing at the moment were what other airlines were also experiencing.

    “Apart from our workers that are paid in naira, most of our operational costs are paid in dollars, which is affecting the profit the airline is generating,’’ he said.

    Ilegbodu also assured the flying public that the airline had put some measures in place to improve on safety operations across its routes.

    He said the measures would ensure uninterrupted safety operations which Arik Air was known for since it began operations.

    AMCON had on Feb. 9 taken over Arik Air as a result of its huge debt profile and thereafter appointed Capt. Roy Ilegbodu to manage the airline, under the receivership of Mr Oluseye Opasanya (SAN).

  • Etisalat Takeover: NCC assures subscribers of network’s integrity

    Etisalat Takeover: NCC assures subscribers of network’s integrity

    Amid the move to takeover of Etisalat by a consortium of banks, the Nigerian Communications Commission (NCC) has assured subscribers that the network’s integrity would not compromised.

    The Director, Public Affairs of NCC, Mr Tony Ojobo, said in a statement on Wednesday in Lagos that the commission’s attention had been drawn to the planned takeover by the consortium of banks.

    Ojobo said that the regulatory body was aware of the indebtedness of Etisalat to the consortium.

    According to him, the NCC in conjunction with the Central Bank of Nigeria (CBN), has mediated by holding several meetings with the banks, Etisalat and other stakeholders to find a solution.

    “Regrettably, these meetings did not yield the desired results.

    “The NCC wishes to reassure about 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator.

    “The commission has taken proactive steps to cushion the impact of the takeover; this is without prejudice to the ongoing effort between Etisalat and the banks toward a negotiated settlement.

    “NCC wishes to reassure all stakeholders in the telecommunications sector, in particular the subscribers on the Etisalat network, that it will ensure that the integrity of the network is not compromised.’’

    The statement said the commission had drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38: Sub-sections 1 and 2.

    “Sub-section 1 says: the grant of a license shall be personal to the licensee.

    “The license shall not be operated by, assigned, sub-licensed or transferred to another party unless the prior written approval of the commission has been granted;

    “Sub-section 2 says: A licensee shall at all times comply by the terms and condition of the licence and the provision of this act and its subsidiary legislation,’’ it said.

    The director said that while the banks and Etisalat were working at resolving the issues, the commission assured that subscribers would continue to enjoy the services provided by the telecommunications company.

    In March, a consortium of 13 banks, both foreign and Nigerian, had wanted to take over the operations of Etisalat over a loan facility totalling 1.2 billion dollars, obtained in 2015.

    The banks said their attempt to recover the loan was due to the pressure from the Asset Management Company of Nigeria (AMCON), demanding immediate cut down on the rate of non-performing loans.

    The NCC and CBN waded into the matter to ensure an amicable resolution of the issue.

    However, after three months of fruitless deliberations, the consortium of banks is finally taking over the telecommunications company.

  • AMCON takes over Arik Air 

    AMCON takes over Arik Air 

    ….Appoints Captain Roy Ukpebo Ilegbodu as Managing Director

    The Asset Management Company of Nigeria (AMCON) Thursday took over the management of Arik Air as part of measures to provide respite for the airline.

    AMCON according to a statement has appointed Captain Roy Ukpebo Ilegbodu as the managing director and Mr Seyi Opasanya (SAN) under receivership arrangement.

    The takeover according to AMCON clearly underscores government’s decision to instill sanity in the nation’s aviation sector and  has also prevented a major catastrophe that would among other factors protect, and preserve Arik Airlines as a going concern.

    Thursday, there was serious security presence at the head office of the airline to ensure effective takeover of the airline.

    The statement reads:” From all indications, respite may have come the way of Arik Airlines currently immersed in heavy financial debt burden that is threatening to permanently ground the airline.

    For some time now, the airline, which carries about 55 percent of the load in the country, has been going through difficult times that are attributable to its bad corporate governance, erratic operational challenges, inability to pay staff salaries and heavy debt burden among other issues, which led to the call for authorities in the country to intervene before Arik goes under like many before it.

    “The move, which clearly underscores government’s decision to instill sanity in the nation’s aviation sector has also prevented a major catastrophe that would among other factors protect, and preserve Arik Airlines as a going concern.”

    AMCON said the development will afford Arik Airlines, which is the largest local carrier to go back to regular and undisrupted operations, avoid job losses, protect investors and stakeholder funds as well as ensure safety and stability in the already challenged aviation sector.

    The statement further reads:” The airline would now be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert under the receivership of Mr. Oluseye Opasanya, SAN.””

    Explaining the rationale for the latest intervention in Arik Airlines, the Minister of State for Aviation, Senator Hadi Siriki said, “We believe that this appointment is timely and will stabilize the operations of the airline.

    This, he said will enhance the long term economic value of Arik Air and revitalize the airline’s ailing operations as well as sustain safety standards, in view of Arik Air’s pivotal role in the Nigerian aviation sector.”

    The Minister who further pledged that the Federal Ministry of Aviation would support the new management of the strategic carrier added that all necessary steps have been taken to ensure that there would be no undue disruption on Arik’s regular business operations or activities of other stakeholders, on account of the recent changes in the leadership and management of Arik Airline.

    In the same vein, Capt. Ilegbodu, under the receivership of Opasanya, SAN has also assured both staff of the troubled airline and all other stakeholders that his appointment at Arik would among other objectives enhance the value of Arik, improve customer experience, and sustain the safety, reliable and secure operational history of the airline before all those were eroded.

    “As a matter of fact, Arik Airline has been in a precarious situation largely attributable to its heavy financial debt burden, bad corporate governance, erratic operational challenges and other issues, that required immediate intervention in order to guarantee the continued survival of the Airline.”

    Arik temporarily suspended its flight operations to the John F. Kennedy International Airport, New York, United States, Thursday, claiming that the two Airbus A330-200 aircraft dedicated to the route have been taken to France for C check at the same time.

    Investigations reveal that more than eight aircrafts are currently grounded at the tarmac making it difficult to meet their routine commercial flights.

    The statement also reads:” The myriad of issues confronting Arik Air of late ranges from confiscation of aircraft due to non-payment of leases, frequent flight delays, constant fracas between Arik Staff and irate passengers at both local and international airports etc.

    “During the last yuletide season, passengers were stranded in airports all over the country due to Arik’s incessant flight delays and cancellations, which negatively affected the preference they enjoy from passengers. You are all living examples of this.

    “The airline is so overwhelmed to the extent that the worker’s wages are not paid for several months, leading to occasional confrontation between the management of Arik and different Aviation Unions in the country.

    “It was Arik’s inability to pay its workers for seven months that forced the United Labour Congress (ULC) and Engineers Union to recently shut the offices of the Airline across the country causing untold hardship to thousands of travelers and an embarrassment to the aviation sector in the country.

    “Besides owing workers’ salaries, the Airline has also not been remitting the taxes of workers to relevant bodies thus also defrauding the country.

    “The Airline is also in perpetual default in its lease payments and insurance premium, leading to regular and embarrassing repossession of its aircraft by Lessors. Various class actions are pending against the airline all over the world.

    “We assure all stakeholders that the intervention is in the best interest of the general public, workers, creditors and other aviation interest groups.”

     

  • Turnaround strategy for Aero could save over N3.56b a year – investigations 

    Turnaround strategy for Aero could save over N3.56b a year – investigations 

    If Aero Airlines must keep afloat, its managers would need to put in place a turnaround strategy of reducing work force to 700 workers from the existing 1, 453, investigation has revealed.

    Apart from cutting down on the workforce by an estimated 51 per cent, sourced hinted that the airline needs serious surgical intervention, including  fleet enhancement to accommodate the lease of eight aircraft and route expansion in Wet and Central African routes alongside some domestic routes.

    The Nation investigations also  revealed that failure on the part of  managers of the airline to carry out financial restructuring to ensure the carrier is able to pay its suppliers as and when due, may sound the death knell for the hitherto solid carrier..

    A source hinted that should the airline carry out the restructuring plan, the benefits will begin to accrue within the next year.

    Investigations also revealed that Aero Airlines this year obtained a loan running into over N120 m from the Asset Management Corporation of Nigeria (AMCON), to stop aircraft lessors from repossessing some aircraft from the carrier.

    Aero, investigation further revealed may not get additional loan from AMCON, without carrying out staff rationalisation of about 51 per cent.

    Currently, Aero operates two Boeing 737 and additional two Dash 8 aircraft with a staff strength of 1, 453.

    The overloaded staff strength according to industry analysts puts the ratio to the four aircraft at 363 workers per airplane, a figure experts  say is too high for an airline in desperate need of restructuring.

    Investigations also reveal that Aero may be struggling to keep afloat, raising posers in the industry over what happened to its many aircraft many years ago  as one the leading domestic carriers.

    A source queried: “Aero has a strong safety heritage which is a strong asset to the airline, with its strong customer base.”

    A few months ago, AMCON appointed former Director General of Nigerian Civil Aviation Authority (NCAA), Captain Fola Akinkuotu to turn around the airline.

    Capt. Akinkuotu said he was pleased to be given the opportunity to turn around Aero Contractors, adding: “AMCON has given us a lifeline which is an opportunity for us to succeed. This option is a huge opportunity we must take as there’s no other option. I believe we can make Aero Contractors a success story.

    “Aero is a premium Nigerian legacy brand, and I am determined to ensure that this airline continues to serve the Nigerian market efficiently, reliably and with its safety record intact.”

    In April, 2016, the management of the airline took bold steps to commence the initial phase of restructuring by erasing some jobs, but aviation unions challenged the action.

    Investigations revealed that the personnel affected by the planned restructuring were workers whose services were no longer required.

    AMCON, earlier this year dissolved the board of Aero Contractors and appointed a manager to oversee the affairs of the airline.

    AMCON also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.

    A statement issued by the public relations firm handling the airline: SY&T explained that the takeover of the airline by AMCON is in furtherance of the statutory responsibility of acquiring Eligible Bank Assets and putting them to economic use in a profitable manner.

    Currently, the Asset Management Company of Nigeria (AMCON) owns 60 percent of the company with the remaining 40 per cent held by the Ibru family.

    The statement reads: “AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.

    “AMCON is both the majority shareholder and creditor of Aero.

    “An Industry based management team will be put in place to provide the highest level of professional competence which would ensure a quick repositioning of the company.

    “The management of AMCON decided to make changes in the management of the airline to protect the brand heritage of the airline.

    “AMCON also maintains that its intervention is in the public interest to sustain and improve the robust and premium quality service which Aero is known for in the country.

    “AMCON would like to assure the regulatory authorities, the traveling public and key stakeholders that the airline will continue to operate on the solid foundation of safety and security with excellent customer service.”