Recalcitrant debtors totaling 7,912 that are in the books of Asset Management Corporation of Nigeria (AMCON) may have been barred from assessing fresh government contracts.
Although the inter-agency committee set up on the recovery of debts owed to the AMCON was silent on the ban, it, however, recommended that these debtors must present clearance from AMCON before consideration for other government contracts.
Sources close to the Committee which submitted its interim report to Yemi Osinbajo Wednesday told InsideBusinessNG that a circular will soon be issued, conveying the ban on the recalcitrant debtors to all the federal MDAs.
AMCON was created 11 July 2011 to stabilise and re-vitalise the financial system by efficiently acquiring a total of N5 trillion toxic loans owed by the debtors and adversely impacting Nigerian banks from their traditional role in the nation’s economy.
While submitting its report, the Chairman of the Committee, Bolaji Owasonoye urged strict implementation of relevant laws including the AMCON Act, that ensures that the recalcitrant debtors cannot benefit from government contracts and projects except with due diligence clearance from AMCON.
Owasonoye who is also the Chairman of the Independent Corrupt Practices Commission advised that “all AMCON debtors must not be allowed to transact business or enjoy patronage with any government agency whatsoever, except clearance is obtained from AMCON on the debt status of such obligors,”
He stated that “between 2020 and 2021, AMCON made significant recoveries which are highlighted in the report.
“Within the period under review, AMCON witnessed 10 per cent growth in the recovery performance across various asset classes. For instance, in the year, 2020, the sum of N146 Billion was recovered, while in 2021 the sum of N161 Billion was also recovered. The recovery outlook for 2022 is also looking positive and the Committee will not relent in its effort to engendering more recoveries.”
He added that the committee will continue its assignment with the institution of bankruptcy proceedings, tax infractions, inquiry as well as other strategies to ensure the obligors are brought under the recovery net of AMCON.
The mandate of the Committee, which was inaugurated in September 2019 includes the review of the status of debt owed to AMCON, collating information relating to respective debtors and their current status, deliberating on practical, legal, and other strategies for the recovery of the outstanding debt, among others.
The Chairman further noted that the Committee immediately commenced work upon inauguration, but the advent of the COVID-19 global pandemic inevitably slowed down the pace of activities and enforcement measures.
Members of the Inter-Agency Committee consist of representatives from various government agencies including the Independent Corrupt Practices and Other Related Offences Commission; Asset Management Corporation of Nigeria; Federal Ministry of Justice; Nigerian Financial Intelligence Agency; Nigerian Deposit Insurance Corporation; Central Bank of Nigeria; Department of State Services; and the Economic and Financial Crimes Commission.
The meeting was attended by representatives of those agencies including the Managing Director/ Chief Executive Officer, AMCON, Ahmed Kuru.
While receiving the report, Prof. Osinbajo said the government would review it and act accordingly, observing that the issue of AMCON debtors doing further business with government agencies is a due diligence matter and there would have to be compliance with the requirements of the law.
It would be recalled that AMCON had earlier published the names of 105 chronic debtors out of the 7,912 debtors owing it a total of N4.4 trillion after the expiration of the 30-day ultimatum given by the National Assembly to debtors to regularise their debt status with the bad debt manager.
The one-month notice elapsed on Wednesday, January 5, 2021.
The corporation said 4,831 debtors out of a total of 12, 743 with toxic loans inherited by the agency had settled their indebtednesses, leaving a total of 7,912 outstanding debtors.
Top on the list published by AMCON then was Capital Oil and Gas Industries Limited owned by Ifeanyi Ubah, with its current exposure put at N115 billion.
It was followed by NICON Investments Limited owned by Jimoh Ibrahim, with N59 billion exposure; Bi-Courtney Limited owned by Wale Babalakin, with over N40 billion; Josephdam & Sons Limited owned by the Kuteyi family with N39 billion exposure; and Tinapa Business Resort of Cross River State Government, with N30 billion exposure.
The name of a former minister of power, Barth Nnaji, appeared alongside others as the main promoters of Geometric Power which owes N29 billion.
Babalakin, once again, was named as the main promoter of Roygate Properties, which owes over N28 billion. Similarly, Shell Development Petroleum Company, promoted by Shell Staff, had its exposure put at N26 billion.
Former governor of Enugu State and Peoples Democratic Party Enugu East Senatorial Candidate, Chimaroke Nnamani, also appeared on the list with a debt of N42 billion owed to AMCON under the names of Iorna Global Resources, Sammy Beth Interbiz Limited, Camden Resources Limited, Riverside Logistics Limited and Rainbownet Limited.
The Olofa of Offa, Gbadamosi Muftau, was also named with a debt of N12 billion under Zarm Stores Limited just as a former CEO of Intercontinental Bank, Erastus Akingbola, was named with over N10 billion exposure under the company Octopus Trust Nigeria Limited.
Also on the list of debtors was Buruji Kashamu, a senator, who reportedly owed the corporation N13.015 billion. A former governor of Plateau State, Joshua Dariye, is also on the list. According to the list, the former governor who has just been pardoned after serving a jail term for corruption charges owes AMCON N6.8 billion.
Usman Nafada, a senator who is presently gunning for the governorship seat in Gombe seat under the platform of the People’s Democratic Party (PDP), also had his name on the list with over N400 million exposure.
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