Abuja solicits help for AMCON to recover N4tr adding to national debt burden
By Jeph Ajobaju, Chief Copy Editor
Abuja has sought stakeholders’ support for the Asset Management Corporation of Nigeria (AMCON) to recover N4 trillion debt owed the government by companies and other private entities.
AMCON Managing Director Ahmed Kuru disclosed this to External Solicitors and Stakeholders in Lagos, where he stressed the agency’s debt recovery mandate is of national importance.
He lamented the N4 trillion debt is taxpayers’ revenue and all hands must be on deck to recover it.
Kuru, represented by AMCON Group Head Benedict Daminabo, said the inability of the agency to recover the money would add to the N46 trillion debt burden of the federal government.
“Also, considering that the Corporation has begun to put measures in place for the eventual wind-down of its activities as it is not created to remain in perpetuity, we see working and collaborating with our stakeholders as a priority”, he pleaded, per Daily Post.
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AMCON laments court frustration in N3.6tr debt recovery
Conflicting court orders frustrate efforts by AMCON to recover N3.6 trillion bad debts owed banks by corporates and individuals, Kuru told lawmakers in July 2022.
He said N1.4 trillion had been recovered out of N5 trillion bad debt owed banks but recovering the balance N3.6 trillion was proving hard.
He made the disclosure at the House of Representatives Banking and Currency Committee retreat with AMCON in Lagos, where he was represented by AMCON Group Head of Asset Management Directorate Matthew Coker.
Kuru said the recovery comprised cash N681 billion; Property Forfeiture N279 billion; Share Forfeiture N140 billion; and other strategic assets N208 billion.
He confirmed a total N116.9 billion cash had been recovered on Polaris EBAs from date of acquisition to date.
Ineffective special powers
Kuru told the lawmakers that despite Special Powers provided by its enabling Act, AMCON struggled with implementation due to the nature of the judicial system
Said he: “The Corporation’s recovery processes at this point majorly depend on the judiciary i.e., Obtaining Possessory Orders or Orders for sale.
“The slow pace of our court processes and sometimes conflicting orders by the courts, especially at the Federal High Court (FHC), which is our court of first instance, frustrate the recovery process. There are delays in obtaining dates in the court to hear AMCON matters.
“Deposit of judgment sum as provided for in the act is not enforced by the courts, some of the obligors are still active contractors of the government.
“They carry out businesses with government with debtor company names or other pseudo names and the BOFIA Act that provided for a Special Tribunal on recovery and enforcements would have hastened the adjudication of our matters in court if the judiciary had constituted a task force specifically in that regard.”
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