Shareholders
of Arik Air Limited have filed a N20 billion suit against the federal
government and Ethiopian Airlines over recent stories in the media that
they were in negotiations on the takeover of the airline... Ethiopian
Airlines had stated that it has submitted a bid for Nigeria’s largest
carrier, but this was dismissed by the Asset Management Corporation of
Nigeria (AMCON) which took over the troubled airline last February over
mounting debts.
AMCON’s chief executive, Ahmed Kure had informed THISDAY that he had not received a bid from Ethiopian Airlines for Arik.
The
suit challenging the so-called takeover bid was instituted by the
shareholders of the airline at the Federal High Court, Lagos, against
Ethiopian Airlines, the Federal Ministry of Transportation and the
Attorney General of the Federation, Mr. Abubakar Malami (SAN).
A
copy of the suit which was filed on September 6 by Arik’s counsel, Mr.
Babajide Koku (SAN), Mr. Chukwuemeka Nwigwe and Mrs. Ezinne Emedom, was
obtained by THISDAY yesterday in Lagos.
In
its statement of claims, supported by a 20-paragraph affidavit and
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 the Nigerian airline’s takeover.
The plaintiff averred that the AMCON had taken over the airline on February 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 nugatory.
“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.
The
plaintiff therefore asked the court to declare the negotiations null
and void because the Ministry of Transportation has no power to transfer
the management of the airline to Ethiopian Airlines while the suits
over the takeover by AMCON were pending.
The
plaintiff also asked the court for an order directing Malami to ensure
the investigation of Ethiopian Airlines by the appropriate authorities
for inducing and interfering in the administration of justice in the
pending suits.
The
shareholders added that if found culpable, the Ethiopian 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.
Speaking
on behalf of the stakeholders, former vice-president of Arik Air,
Senator Anietie Okon accused Ethiopia Airlines of engaging in unethical
behavior and of conspiring with unnamed persons in the Nigerian
government to take over Arik, noting that records show that Ethiopian
Airlines has owed huge debts in the past which with the support of its
own government it had defrayed but is currently still indebted to
various creditors.
Okon
noted that in the aviation industry, debts by airlines were a continuum
and it is believed that as long as that airline is flying it owes
debts.
According
to him, debts are staggered and paid for and in all countries of the
world, most governments support their airlines, whether flag carriers or
national carriers, including those that are indebted.
He said Arik has over 2,000 direct staff and is indirectly providing sustenance to over 5,000 Nigerians.
No comments: