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Payday at Arik Air

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Old 19th Jul 2010, 07:29
  #141 (permalink)  
 
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Snoop Arik Air, Arumeni, directors indicted for money laundering

Still want to work there ?

Arik Air, Arumeni, directors indicted for money laundering

ARIK Air Limited, its chairman, Mr Johnson Arumeni-Ikhide and directors have been indicted for money laundering by the Economic and Financial Crimes Commission (EFCC) and recommended for criminal trial.

The commission, which investigated the company for tax evasion totalling N5 billion, would also probe the sources of the firm’s funding.

Apart from Arumeni, others on the company’s board are the vice-chairman, Senator Anietie Okon, Mr. Michael McTighe, Olubiyi Sangowawa, Mr. Michael Arumeni-Ikhide, Mr. Dare Mabiaku, among others.

The commission, in its investigation which commenced on August 3, 2009, listed the laws breached by the company as;

•Money Laundering Violation: S. 14(a) of the Money Laundering Act - Money Laundering Offence predicated on the original illicit/illegal act of conversion of VAT (brings in the provision of 5.18 of Money Laundering Act to make the directors liable.

•Stealing/conversion: Contrary to S. 383(1), (2) (2)(e) and S. 387(f) of the Criminal Code Act and punishable under Section 390.

•Value Added Tax Act: Failure to keep proper records and accounts under Section 9 of Value Added Tax Act and punishable under S. 29 of the same act.

•Failure to submit returns contrary to S. 31 of Value Added Tax Act.

•Evasion of Tax contrary to S. 22 of Value Added Tax Act. iv. Effect of non-remittance of tax contrary to S. 31 of Value Added Tax Act.

•Offence by body corporate contrary to S. 33 of Value Added Tax Act - which makes every Director, Manager, Secretary, Management severally guilty of the Offence

“Investigation revealed that Arik Air Limited is a habitual tax evader. Their evasion history dates back to the period of commencement. Their account books are understated. The chairman does not consider tax as part of the company’s obligation. They collect tax on behalf of government and invest it in their business. They accepted liability with a payment plan which they refused abide with.

“For the reason that this investigation is holistic, I request your permission to allow it probe into the company’s source of funds. The company had 24 aircraft in its fleet when we commenced investigation about a year ago, information available to us reveals that it has acquired six more, yet the tax liability remains unpaid,” the commission said.

It was also revealed in an investigative report by the commission that the chairman of the commission, Arumemi-Ikhide, shunned four summons on him for interrogation in the course of the investigation.

Nigerian Tribune had reported, quoting a top source in the commission, that he finally appeared for interrogation on July 6, 2010, only to discover that he shunned the commission as usual, with only the acting Managing Director appearing for interrogation.

The commission had noted that “On August 10, 2009, the team commenced computation of the company’s tax liability and concluded on August 12, 2009.”

“The team invited the General Manager, Finance, Mr Steven Gharoro, on August 12 and 13, 2009 and his statement was obtained under the word of caution. He was, thereafter, released on bail.

“The Deputy Managing Director, Mr Chris Ndulue, was also invited by the commission on August 13 and 14, 2009 and his statement was accordingly obtained under the word of caution. He was also released on bail to a reliable surety.

“The chairman and managing director of the company were invited for a meeting on August 18, 2009, as the letter was delivered through the deputy general manager.

“On August 18, the vice chairman, Senator Anietie Okon, came in to represent the chairman at the meeting. He was cautioned and released on bail. He promised, through a written statement, to come with him on August 26, 2009.

“On that date, the chairman failed to honour our invitation. No reason was given for this action. The company maintained complete silence and did not deem it necessary to write to the commission.

“On August 31, 2009, the commission received a letter from the company that the chairman will be coming on September 4, 2009. He failed to appear on the said date.

“On September 7, 2009, the commission wrote a letter inviting the company’s chairman and his deputy managing director for a meeting in Abuja on September 10, 2009, this invitation was not honoured by the company.

“An investigation activities letter was written to NCAA and FAAN on June 18, 2010 for the current liability of Arik Air Limited to enable the team to conclude its investigation.

“The acting managing director was invited to Abuja on July 6, 2010, his addition statement was obtained and released on self recognisance to return on July 7, 2010 for processes but he never appeared.”

The commission, in its investigation, came up with findings which include:

•That, by its nature, the company is liable by law to pay such taxes as Company Income Tax, VAT, Withholding Tax, Education Tax, Personal Income Tax, Capital Gains Tax, Passenger Service Charge (PSC) and Ticket Sales Commission (TSC) to the government.

•That the company charges VAT, PSC, TSC, and CSC on all their transactions but do not remit to the appropriate authorities.

•That the company is on tax relief from company income tax and education tax for the period under review.

•That the company has been deducting but has not remitted withholding tax amounting to N155,917,998.15 for the period under review.

•That the company only remitted a negligible amount of N100 million out of its total VAT liability of N1,793,077,594.39 since they commenced operation in 2006.

•That the company has outstanding payments of PSC to FAAN of N221,406,446.61 as at October 2009.

•That the company has outstanding payments to NCAA in the form of TSC totalling N1,534,812,141.99

•That the company has outstanding payment N443,368,738.71 to NAMA as at October, 2009.

•That the company’s account is grossly understated but we were still able to come up with a liability of over 5 billion.

•That Arik Air Limited is a habitual tax evader.

•That the commission received a letter dated February 14, 2010 from Arik accepting a tax liability of VAT and Withholding Tax of N1,750,370,455.04, against our reconciled sum of 1,848,995,592.54 (they appealed for a deduction of N98,625,137.5 based on technical reasons).

•A payment plan was communicated to the commission through a letter dated 12th April, 2010 for which the sum of 150 million was to be paid by the end of April 2010 and another N100 million subsequently until the total amount is liquidated.

•That the company treats tax and levies matters with levity evidenced by their non-remittance to the regulatory authorities.

The commission, however, noted that Arik had not been faithful to its own promise of instalment payment of the accepted tax liability.
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Old 19th Jul 2010, 09:16
  #142 (permalink)  
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Pay now 21 days late

I've given up holding my breath now as I have a feeling this pay day will never arrive.

The chairman Johnson is a knight of the church apparently. He wants to take a gander at that bit in the bible which goes something along the lines of "it is easier for a camel to pass through the eye of a needle than it is for a rich man to enter heaven". Johnson and camels - camels and johnson; perhaps the chap who wrote that bit was seeing some irony in the future.


Regards
Exeng
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Old 19th Jul 2010, 14:28
  #143 (permalink)  
 
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Catch me if you can!

Well that would explain why the man and his son are never in Nigeria for long....you cant catch what you cant see,,,, Also Arik Air wants to sell 5 737s and Air Nigeria wants to buy 5 737s before October,,,,,,I wonder if there is a connection....
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Old 20th Jul 2010, 16:24
  #144 (permalink)  
 
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Should I, Shouldn't I...?

Hi All,

I read this whole thread, and well, cannot say I am surprised. Not much better than the Russians! Pay is late, false reasons for delaying pay, firing people for no reason other than to save on redundancy payments... ah, its all spreading!

Anyway, hope all is working out ok there.

My question is, to anyone brave enough to pick this one up, is, I have applied for a job out there, VP Flight Ops. Considering what they require for the role, its right upmy street. I am not unused to adverse cultures and the whole "Managers/Owners at the top trickle out the money on pain of death only" mentality - again, Russian clients taught me that well!

Do Arik pay ok? Is it really like living in a prison out there? How corrupt is it? Essentially, if I was offered the position, is it workable? Do they pay in local currency, and is it better (or even possible) to be paid in EUR or GBP or somesuch?

Please PM if you like - it would be most appreciated, and, best of luck to you all!

SJ
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Old 24th Jul 2010, 03:33
  #145 (permalink)  
 
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Angel Seriously?

Superjet I'll pick this one up!
My question is, to anyone brave enough to pick this one up, is, I have applied for a job out there, VP Flight Ops. Considering what they require for the role, its right up my street. I am not unused to adverse cultures and the whole "Managers/Owners at the top trickle out the money on pain of death only" mentality - again, Russian clients taught me that well!
Do Arik pay ok?
No Arik pay is very poor.

Is it really like living in a prison out there?
Yes it is like living in a prison only slightly less comfortable and the food isn't as good or regular.

How corrupt is it?
It is as corrupt as it is possible to be and still trade. In fact if you look up corruption in the dictionary it says "You are welcome to Nigeria and the Centre of Excellence!"

Essentially, if I was offered the position, is it workable?
Yes if you really have done something bad and feel the need to pay penance then come work here otherwise go get a psych eval!! You come here if you cannot work elsewhere in the world full stop.

Do they pay in local currency, and is it better (or even possible) to be paid in EUR or GBP or somesuch?
Both 90% bank of you choice anywhere in the world in US dollars 10% local. Frequency read the thread.

To be frank if you are employed somewhere and leave that job to come here then you deserve everything you get on arrival. And trust us you will get it!

I hope to be gone before you arrive so good luck !VT
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Old 24th Jul 2010, 10:44
  #146 (permalink)  
 
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The Many troubles of Arik

I might not particularly be a fan of Arik, bcos of the generally held view of the way it was established. But being a Nigerian, i feel so sad that things have taken a turn for the worse, as this once great airline is now fighting for its life all bcos of the insecerity, greed, corruption and mismanagment of AJ and his cronies who know nothing about aviation, but want to be the Richard Branson of Nigerian aviation in a twinkle of an eye. It looks almost impossible for Arik to ever recover. But for the sake of it being the single largest private sector employer of Nigerians in the aviation sector, lets all do everything possible to save her. I cannot imagine the hardship that thousands of families in Nigeria and to an extent, families of foreign employees who depend on it would face.
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Old 25th Jul 2010, 05:26
  #147 (permalink)  
 
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What would you suggest could turn it around? Payday is just 3 days away, and many have only recently been paid from last month.

Not paying the staff is not just a symptom of being grossly in debt. It's a bit of a power thing, too. And based on the likely source of money (according to the government) to implement and run the company, I'm not sure that's going to go away.

Any airline is a handful even with first world infrastructure and experienced managers. Not much can be done about the former, but how do you address the latter?

How do you make up with virtually every vender, supplier, and employee who's suffered this (Virgin Nigeria has changed ownership and name.. Is it all better yet?).

I'm glad that you recognize that failures by Arik leadership affect all employees, foreign and domestic.
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Old 25th Jul 2010, 07:24
  #148 (permalink)  
 
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This is symptomatic...

There is a very familiar pattern here to be seen, I think, one that most people could see from the start. All that is different with Arik is the size of the thing, a scam run with really huge numbers since it was supposed to be a major airline.

You had such as Boeing on board with Arik, or am I the only one who can remember the big news about the order for a whole fleet of new Boeings? I do not expect such a company would look very closely at the source of the money for this huge order but just say, "Thanks so very, very much!" and then rush the PR people in to put the item in the news. If it turns out later that this was just a figment of someone's imagination, well... that is not a big surprise in this business.

On the local level this was only going to work as long as Arik's ogah still had fellow raskols in power on the national level. Well, their best friend is now having his mail delivered by groundhogs so that it was only a matter of time before that nasty man from EFCC came around asking the same awkward questions about where the money from Rivers State went, where the money for Arik came from, is that perhaps the same money... that sort of thing.

The next act of this farce should be the stripping of Arik's assets (mainly its aircraft, one assumes, if they aren't found to be merely leased) and the hiding of the money.

Then we should have the disappearance of the people behind the scam for a decent interval before they sort things out by paying a mere percentage of what they stole (invested, whatever) to return to live in peace and freedom.

To an outsider this reads like something outlandish but just check out the history of Umaru Dikko, for one. First the then-government of Nigeria wanted him back so badly that they even did a clumsy kidnap attempt from London, since he seemed to have made away with quite a bit of money from his time as a cabinet minister. The memory is a bit foggy but was it something like $1, 000, 000, 000.00? Later, though, everyone kissed and made up so that now he's back home, probably still in possession of the bulk of his stolen loot although that is something we little people probably shall never know.

I really, really miss Jerry Agbeye-Agbeye now! He would have such a good time raking this one over.
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Old 25th Jul 2010, 17:44
  #149 (permalink)  
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Latest Arik News... with regard to Money

Arik Air is indebted to NAMA on the Terminal Navigation Changes (TNC) and en route air charges for both domestic and international operations.

Outstanding debt:

International $N 1,889,000,000 ($12.6 million USD)
Domestic $N 605,000,000 ( $4 million USD)

Pilots were told Saturday evening that they should be happy that they are paid late, because many other airlines also pay late.

In other words, it won't ever be on time.

B777's are cancelled. Announced are some crazy orders for REALLY big airplanes that we'll also not see ever. Does anybody see a pattern here?

When those planes don't arrive, then it will be announced that space shuttles and lunar orbiters are on order... all contingent on the company remaining in business that long.
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Old 26th Jul 2010, 16:23
  #150 (permalink)  
 
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Pilots were told Saturday evening that they should be happy that they are paid late, because many other airlines also pay late.
This man must be an idit, how lucky are we?

Last edited by Oyindo; 26th Jul 2010 at 16:47.
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Old 26th Jul 2010, 23:25
  #151 (permalink)  
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The Chairman also said that the money laundering issue is absolutely false, and is a vicious rumor spread by pilots.

I guess we must be getting close to the truth, for him to even address it.

Also, if you don't like the company, you should "peacefully leave". So, you bad pilots, stop making up lies !!! And making planes late. And being mean to customers. And putting people in first / business class. And complaining about you hotel or pay.
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Old 27th Jul 2010, 08:43
  #152 (permalink)  
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More stories of Arik not paying

One of the larger hotels that Arik uses in Lagos had the following note slid under the crewmembers' hotel room doors:

"Dear Sir, This is to bring to your notice that as from 27/07/10, all Arik crew are to pay cash for their Breakfast, Lunch and Dinner. Thanks for your understanding, Management"
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Old 27th Jul 2010, 11:49
  #153 (permalink)  
 
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Is all of this Arik Air news true? Heading up to Canada for an interview at the end of the week.
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Old 27th Jul 2010, 12:05
  #154 (permalink)  
 
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Is all of this Arik Air news true? Heading up to Canada for an interview at the end of the week.
Have you not read this thread? If you are going for an ARIK interview, save your washing machine the bother and don't go.

If you do and accept a job with then you deserve everything that's coming to you.
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Old 27th Jul 2010, 12:37
  #155 (permalink)  
 
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sunset contrails...

At some point around two years ago Arik was an okay solution if you had no job... but the last six months it has gotten a lot worse. Do yourself a favor and stay away! a beg oh...
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Old 27th Jul 2010, 13:29
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Exclamation

Barge pole comes to mind !! contrails if you are up for a life changing experience, then Arik - Lagos is the place to be. A word is enough for the wise!!! Good luck
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Old 27th Jul 2010, 21:40
  #157 (permalink)  
 
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Angel Troll alert!

Sunset contrails.

Would have been easier to just pull the pin and throw the grenade in the thread to normally get a troll worthy reply.

To be honest though making a joke like wanting to join Arik at our expense is hardly the support we expect from a fellow aviator!

If just on the off chance you are for real I thought sanity was a requirement for a Class 1 medical are you sure you're current!

VT
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Old 27th Jul 2010, 22:32
  #158 (permalink)  
 
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Contrails

Like your name suggests, help yourself not to wail in the WAKE of those who were like you few months/years ago. Trust me, the wailing often happens after sunset & you won't be able to nap let alone sleep.

As long as people like you keep turning up at Arik, AJ will continue to believe that he can treat Pilots especially locals like ****. He will simply be recycling pilots for that hogwash of an airline that he runs. Come to think of it, who would have thought he would treat expats like ****?

If the supply of expats is cut off from his reach, he will begin to learn vital lessons on how not to run an airline.
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Old 28th Jul 2010, 00:42
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AJ will never learn and never change, he will rather have it all go to H... than start treating his employees better! Expats or not... anyways, no expat pilots have been hired for more than a year and loads have left... lets see how the future works out.

Last edited by Don K; 10th Sep 2010 at 09:39.
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Old 28th Jul 2010, 18:19
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@naija ninja and vortex thing,


Not sure what your talking about. I can leave on crappy organization making four thousand a month after taxes and only get twelve days off a month or get double the pay and a month vacation every other month.

Everybody has a better job. Don't slam the guys that are trying to earn a reasonable wage.

If you don't work for Arik, then what is your concern? If you do work for Arik, then what the hell are you don't there?
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