Nigerian Court Orders Arrest of Former Dana Air CEO

A Nigerian Federal High Court in Abuja has issued an arrest warrant for Jacky Ramesh Hathiramani, former managing director of Dana Air, following his repeated failure to attend court hearings regarding financial crime charges totaling NGN1.37 billion (USD825,000). The charges, filed by the federal government, accuse Hathiramani and Dana Group of various financial misconducts between 2014 and 2018, including alleged fraud involving industrial equipment and the misallocation of funds intended for a steel factory.

Judge Obiora Egwuatu ordered Hathiramani’s arrest on November 4, 2024, citing his absence and failure to respond to the summons. The court set a new date of January 13, 2025, for Hathiramani to appear. His legal representative, Bidemi Ademola-Bello, confirmed Hathiramani is currently out of the country and filed a preliminary objection to challenge the charges and the court’s jurisdiction.

The federal case against Hathiramani, Dana Group PLC, and Dana Steel Limited (filed as FHC/ABJ/CR/101/2021) involves six counts of alleged financial irregularities, including the suspected fraudulent sale of industrial generators worth NGN450 million (USD271,000) and the diversion of NGN864 million (USD520,000) from the Dana Steel project in Katsina. Another charge alleges an unlawful transfer of NGN60.3 million (USD36,000) into an unspecified bank account.

Hathiramani and his legal advisor, Phina Itumo, emphasized that these charges are unrelated to Dana Air, asserting that Hathiramani had resigned from his role as managing director of Dana Air and Dana Group in April 2024, effective May 1. Itumo further clarified that Dana Group, a conglomerate, does not own shares in Dana Air, and that the dispute is a commercial matter involving Dana Steel Limited and a bank. Despite this clarification, Hathiramani’s email signature in October 2024 still identified him as MD/CEO of Dana Group, and the Dana Group website reflects his leadership position.

Dana Air, a now-dormant airline, had its Air Operator’s Certificate (AOC) suspended by the Nigerian Civil Aviation Authority (NCAA) in April 2023, following a runway excursion incident at Lagos. The AOC remains valid until November 2027, though the airline grounded its operations, citing financial difficulties and ongoing fleet maintenance issues. In mid-2022, the NCAA previously suspended Dana Air’s AOC due to non-compliance with financial and safety regulations.

Dana Air’s fleet once comprised several MD-80 series aircraft and a Boeing 737-300 leased from Aerolux. Of its MD-83s, one tragically crashed in 2012, one was deemed irreparable, and another remains in storage in Lagos. After suspending operations, the airline furloughed its staff as maintenance challenges and regulatory constraints hindered its ability to resume services.

Judge Egwuatu underscored the legal responsibility of Hathiramani to attend court hearings, declaring, “The first defendant is bound to appear before the court, and if he does not, the court can issue a warrant for his arrest.” With the warrant now issued, Nigerian authorities are expected to take steps to enforce Hathiramani’s appearance in court on the rescheduled date.

As this high-profile case continues, it has raised questions about Dana Air’s future in the Nigerian aviation sector and highlighted regulatory efforts to uphold financial and operational standards within the industry.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com