Airlines to come under EFCC's radar

By Okechukwu Nnodim

October 2, 2009 01:30AM

The Economic and Financial Crimes Commission, on Wednesday, announced that it would carry out thorough investigations of all airlines in the country for cases of suspected money laundering and tax evasion.

This comes after the arrest, on Tuesday, of the chief pilot of Arik Air, Victor Egonu, and the airline's chief security officer, after the agency's officers failed to reach the airline's chairperson, Arumemi Johnson, and acting managing director, Chris Ndulue. The two arrested men were released after they wrote statements."We are going to investigate other airlines, it is not only Arik, for this is something that cuts across the industry," said Femi Babafemi, media and publicity head for the anti-graft agency.

According to Mr. Babafemi, the investigation by the team from the commission is based on the directive of their boss, Farida Waziri."She said we should actually investigate suspected firms and individuals for tax evasion and money laundering," he said. "So we are carrying out our functions on airlines."The EFCC's spokesperson disclosed that about three billion naira has been recovered from some companies which are defaulters in tax payment within the last three weeks."We are only making sure that airlines and other companies in the country pay their taxes," he said.

"For instance, Bellview Airlines has paid about N600 million, as a result of our investigations."Mr. Babafemi said that the commission had to arrest Arik Air's personnel after the failed to honour previous invitations."N4.6 billion money laundering and tax evasion are the reasons established against Arik Air," he said. "If their management had responded to our several invitations, I don't think we would have arrested any of their employees."

On Tuesday, operatives of the Economic and Financial Crimes Commission visited Arik Air's headquarters in Lagos, halted administrative activities, and arrested the airline's chief pilot.The airline admitted that the EFCC's visit was as a result of irregularity in its tax payments.The media representative for Arik, Banji Ola, confirmed the arrest and said that the carrier's normal operations were affected."The anti-graft agency personnel have since left, but have taken away our chief pilot, Captain Victor Egonu," he said.

Meanwhile, Mr. Babafemi added that Arik's management would be meeting with the agency on issues concerning the arrest and the tax evasion charges."Yes they need to meet with us, for as at yesterday (Tuesday), there was that understanding that they will come to our office," he said. "But I will not be able to tell whether it will be in Lagos or Abuja."

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Reader Comments (6)

Posted by Habib on Oct 02 2009

EFCC dey vex; so you guys are serious about this, to the point of investigating airlines for tax evasion. I wonder what job would be left for the Internal Revenue Collectors and tax offices in the country.

Posted by igwe czar on Oct 02 2009

was this investigation prompted by inland revenue or this is another ploy to witch hunt?

Posted by Labalaba on Oct 03 2009

EFCC your mandate to prosecute corrupt public officers has not been effectively executed. Why are you poking your nose in other people's affairs/mandate? What about the former governors who do not enjoy the immunity clause accused of corruption, has EFCC cleared them? Please don't hoodwink the public with these petty thievery, when you jail the big thieves, others would fall in line. Madam, please get cracking and stop wasting valuable public funds seeking cheap publicity.

Posted by Ken on Oct 03 2009

Arumeni Johnson is being punished for criticising the CBN sack of Ibru and co. He was among the first industry operators to speak out against Sanusi. They went after the banks, now they're going after airlines, destroying what is working and leaving what is not working where it is. Nigeria!!!!

Posted by Nat on Oct 03 2009

@ Labalaba the agency with the responsibility for investigating public officers for corruption is that Lame duck agency called Independent Corrupt Practices Commission ICPC and headed by one ineffective retired Justices of the court of appeal. The EFCC has the mandate to investigate Economic crimes and this include tax invasion, money laundering etc. The Federal Inland Revenue Servive FIRS has so far failed in their duties and responsibilities due yto massive corruption. Why is Belview paying =N=600 Million now on the prompting of the EFCC? Where was the FIRS all these while?The FIRS as presently constituted is a center of fraud,and massive corruption and they are at best economic saboteurs whose leadership should be cooling her heels in jail by now. Corruption whether by a clerk, Minister, cleaner,messenger, Governor, bank MD, Director, bus conductor all na corruption and it must be dealt with in equal measure without let or hindrance. All these people that appear on TV, Radio and in Newspapers pontificating are worse than these accused governors. Madam EFCC carry go!