Assets worth N136.73 bln currently under AMCON management ~ Kuru
The Asset Management Corporation of Nigeria (AMCON) on Saturday said it has total assets worth N136.73 billion currently under its management as a result of its recovery activities since inception.
“As of August 2020, AMCON’s assets under management (AUM) amounted to about N136.73 billion. We have about N112.03 billion worth of propriety assets,” Ahmed Kuru told Senate Committee on Banking and Finance at the weekend.
The country’s bad bank, which was established in 2010 by the government in the wake of the banking crisis also said it is battling with some of the oil and gas facilities acquired from Polaris bank.
The Assets Under Management (AUM) consist of Arik Airline, Aero Contracts, Polaris Bank, Peugeot Automobile Nigeria and other companies AMCON successfully took over as a result of the inabilities of the original promoters to liquidity their obligations to the corporation.
The Corporation took over the defunct Skye Bank, now Polaris Bank under the bridged back concept of the Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Corporation (NDIC) in 2016.
According to the chief executive of the corporation, Polaris Bank had stabilized, and sales process will soon commence.
Kuru spoke at the weekend when he led the management of the corporation to appear before a technical session of the Senate Committee on Banking and finance.
He “solicits the continued support of this esteemed Distinguished Senate Committee on Banking, Insurance & Other Financial Institutions.”
The AMCON chief said the corporation has recovered a total of N1.08 trillion to date from debtors while of the total recovery, cash recovery represents 38 percent, property forfeiture 25 percent, clawback and repurchases 21 percent, share forfeitures 12 percent and debt to equity conversion 3 percent.
“However, during the last 2 quarters, Q1 & Q2, 2020 the Corporation made a total cash recovery of N27.8 billion, representing only about 36 percent of our recovery budget in the two quarters, respectively,” Kuru said.
According to him, The recovery in the first and second quarters of the year was significant considering the Covid-19 challenge as it affects businesses.
“We want the 9th Senate of the Federal Republic of Nigeria to pile pressure on some of our obligors through the Senate Committee on Banking Insurance and Other Financial Institutions under the leadership of Senator Uba Sani as Chairman.
“Some of these obligors are very important members of the society and, as distinguished senators, I know they have all it takes to intervene and even compel AMCON obligors to meet their obligation,” Kuru said.
On his part, the Chairman of the committee, Senator Uba Sani, assured that committee and AMCON have identified the strategies being employed by debtors to stall the repayment of loans, including the dragging of court cases for many years. The Senator who represents Kaduna Central at the 9th Senate said: “Since the pandemic is not in a hurry to go away, we must continue to initiate and finetune measures aimed at stabilizing the economy. Stakeholders must work together in ensuring that government efforts are optimally achieved with tangible and visible results,” AMCON chief executive said.
He said the corporation has sold assets worth about N489.6 billion and listed some of the most notorious accounts AMCON is currently handling as include Capital Oil & Gas Limited owned by Senator Ifeanyi Uba, Bi-Courtney Group of Companies, owned by Wale Babalakin, NICON Investment by Jimoh Ibrahim and Rockson Engineering/International by Araraume Johnson.
Senator Uba Sani, while responding to the AMCON boss, assured that his committee and AMCON have identified the strategies being employed by debtors to stall the repayment of loans, including the dragging of court cases for many years.
“Since the pandemic is not in a hurry to go away, we must continue to initiate and finetune measures aimed at stabilizing the economy. Stakeholders must work together in ensuring that government efforts are optimally achieved with tangible and visible results’” Uba said.