Air Nigeria in fraud investigation

NIGERIA - The Federal Inland Revenue Service (FIRS) has filed charges of tax evasion and fraud against Air Nigeria. This is the latest in the series of crisis to hit Nigeria's second largest air carrier. 

According to media reports, the Federal Inland Revenue Service (FIRS)  sued the airline last Thursday following Monday's arrest of the Chief Executive Officer of the airline, Mr. Kinfe Kahssaye.

The suit was lodged at the Federal High Court in the capital city of Abuja against Air Nigeria for failure to pay taxes amounting to 4.86 billion Naira ($30 million) over five years and for allegedly forging a Tax Clearance Certificate.

Air Nigeria, which operates 11 aircraft,  including five Boeing 737s and two Embraer 190s on domestic, regional and international routes was last week reprimamded by Nigeria's airline regulatory body - Nigerian Civil Aviation Authority (NCAA).  Air Nigeria's entire fleet was grounded for several days by the regulatory Authority for safety checks after a recieving  report of low wages and a strike by its pilots and engineers.

In 2010, businessman Jimoh Ibrahim took over Virgin Nigeria from Richard Branson's Virgin Atlantic Airlines with a vision to make it Nigeria's natioanal airline. New sources claim that the unpaid tax are as a result of the take over.