Appoints accounting firm for forensic audit for last five years
The Asset Management Corporation of Nigeria (AMCON) has
dissolved the board of Aero Contractors and appointed a manager
to oversee the affairs of the airline.
This is just as AMCON has engaged a reputable accounting firm to
undertake a forensic audit of the airline’s accounts over the last five
Investigations reveal that the airline got N14 billion intervention
fund in 2010 with additional investment by AMCON which has
raised the debt profile of the airline to N20 billion.
A source hinted that in the last five years things went bad in the
airline due to alleged mismanagement.
Shareholders of the airline it was learnt have not been happy with
the state of affairs of the airline warranting its takeover by AMCON.
Sources further hinted that the takeover by AMCON is connected
to the need to ensure the business is sustained, in order to ensure
continuity and credit recovery.
The source said:” The intervention by AMCON is based on public
interest, to ensure there is a viable transport system, ensure
continuity without compromising safety standards, brand heritage
and other factors. To select a management team for the airline as
soon as possible and ensure that Aero flies in secured
environment to protect shareholders values.”
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.
Aero Contractors Nigeria’s oldest airline commenced business in
1959, initially providing services to oil and gas sector, before
venturing into fix wing operations in the year 2000.
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
“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.”


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