By Dickson Omobola
Finchglow Holdings has urged Federal Government to write off legacy debts incurred by domestic airlines, saying such debts are old and have become doubtful.
Recently, there was a dispute over the non-remittance of the Ticket Sales Charge, TSC, by airlines, following a rise in operational costs and an increase in fuel prices attributed to the United States-Iran crisis.
Subsequently, the Airline Operators of Nigeria, AON, sought relief from federal government, which approved a 30 per cent waiver on the charges.
Speaking at a recent conference in Lagos, Executive Chairman of United Nigeria Airlines, Professor Obiora Okonkwo, said following the presidential waiver, airlines met with the “NCAA and the Minister. We held several meetings. In one decisive meeting, NCAA requested that airline operators pay 10 per cent of the legacy debts within a specified period, and then pay the rest in instalments over a period of time, and each airline was to meet with NCAA’s Director of Finance.”
However, Group Managing Director of Finchglow, Mr Bernard Bankole, who addressed newsmen in Lagos, said federal government should reconsider its position on legacy debts, saying debts that had remained outstanding for years should be written off.
He said: “When you are talking about legacy debts, let us revisit that. It is a basic thing they taught us in accounting. In accounting, you write it off. You cannot continue to carry bad debts that have become doubtful. If we are being forced to reconcile our books and write off, why can’t the government write it off?
“When we’re talking about legacy debts, it means the debt is old. It has become doubtful and should be written off. There’s nothing wrong for a business to file for bankruptcy. Government of Bola Tinubu is different from Muhammadu Buhari. Why are you still chasing something from five, 10 years ago? And you say you want to collect it?
“I’m suggesting that any debt that has been classified as legacy debts should be written off. When you say something is legacy, it means that it is stale. How do you reconcile accounting? Debt of 15 years ago, you are collecting it now.”
Meanwhile, Bankole disclosed that Finchglow Holdings was seeking final approval from the Ogun State government to establish a flying school at Gateway International Airport.
He said: “The moment we get our final approval from Ogun State government, we are going to move into Gateway to start planning how to establish our flying school. We are waiting for them. They have given first-level approval. We are waiting for the final approval so we can start our operations there. We are constantly pushing. The thing about the industry we have found ourselves in is that it is the gateway to any country.
“Our name is still going to go through the NCAA, but we don’t see that as a problem. You know why? Because they have a licence already. This is just going to be an addition to our existing licence. It’s not like they’re starting anything fresh. It’s just going to be one of the courses that they’re taking.
“They will approve the extension. They will come and inspect it. And once they inspect it once, we have a land allocation from Ogun State government. Then the rest is history.”
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