NUATE suggests new methodology for bailout package for Nigeria aviation sector
The National Union of Air Transport Employees, NUATE has suggested a new methodology for the bailout package for Nigeria aviation sector.
NUATE while appealing to the federal government to hasten its steps towards releasing the bailout package for the aviation sector in Nigeria noted that that the methodology to be applied for the intervention must not be business as usual.
The union in a statement signed by its secretary general, comrade Ocheme Aba explained that two previous financial interventions in the aviation sector left much to be desired.
According to him: “In those instances, airlines like Arik Air, Kabo Air (defunct), Air Nigeria (defunct), and many others collected billions of Naira supposedly for capital injection into their businesses, but were diverted to personal usages, and callously leaving the airlines to bleed to death”.
NUATE scribe pointed out in the statement that the promoters of the airlines then who ran away with bloated personal bank accounts are walking free till today.
In his words: “This was possible because the airlines were individually owned enterprises without any discernable corporate governance structures. Unfortunately, this particular situation of the airlines, in terms of their ownership and governance structures, remain largely unchanged today. Therefore, if the same methodology as before were to be used, then we fear that the same undesirable result will accrue. This will be most unhelpful”.
The union said the interventions, should mimic the extent of losses incurred by each and every organisation, public or private, and should vary proportionately.
NUATE maintained that cash grants should be extremely minimized, or even totally avoided as little or no monies should be paid directly to the companies or agencies, but rather, debts and other outstanding obligations which constitute overhangs should be carefully determined and paid directly from the intervention fund.
Aba said such obligations could include outstanding staff emoluments, operational fees to FAAN and the other agencies, remittances (PenCom, taxes, etc), outstanding scheduled mandatory aircraft maintenance costs, and such other outstanding debits.
“There have to be clear conditionalities for access to the intervention fund, such as, (a) discernable good corporate governance structure, (b) transparent and accountable process for monitoring implementation of the intervention policies, (c) industrial climate, especially the presence of freedom for employees to freely join trade unions of their choosing, as well as presence of validly negotiated Conditions of Service, (d) accountability for previous interventions where applicable, and such other conditions that may be deemed fit.
“There is clear case for the involvement of our Union in the process to assure transparency and effectiveness, and to benefit from our wide and strong base, as well as our good understanding of the sector, including, importantly, its history,” Aba said.
He advised on the need to utilize the opportunity to fully resolve the dicey situation of Aero Contractors and Arik Air, both of which are under the receivership of Asset Management Corporation of Nigeria, AMCON as a result of debt overhang.
Aba stated that the union suggest and support AMCON’s full absorption of the debts of the two airlines to make way for positive acquisition of the airlines by those with proven capacity to progress the enterprises in the manner that could protect jobs and increase employment of Nigerians.
He stressed that the intervention for these ailing outfits could be tailored in the above fashion.
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