With almost five trillion Naira (N5tn) outstanding debts to be recovered by the Asset Management Corporation of Nigeria (AMCON), concerns are mounting over the capability of the ‘Bad Bank’ to live up to the expectations of the stakeholders.
The Corporation, which is believed to be in almost all the sectors of the economy due to part of its mandate that empowers it to take over all the bad debts of troubled firms, is alleged to be unwieldy and lacks the required manpower to execute its responsibilities effectively.
Consequently, huge sums of funds are usually expended on hiring the services of some professionals like lawyers and accountants for legal representations and receivership Management.
Most worrisome, according to the analysts, is the fact that the corporation has full complements of staff in these departments for which tax payers’ funds are being expended.
Metrobusinessnews.com (MBN) further gathered that, in recent years, the management of the Corporation had preoccupied itself more with superintending over Mergers and Acquisition as well as the management of troubled banks with the Central Bank of Nigeria (CBN).
Two of the banks, among others, for which the Corporation allegedly actively participated with CBN in selling to new investors, are currently back under the interim management of CBN, after the board and management were sacked.
Infact an insider told MBN, then, that while the processes by the two actors in disposing one of the banks were not transparent, the claimed Payments for the second bank are still being traced.
This is why, according to the analysts, the proposed new method of recovering the huge debt by the new management is concerning and being trailed by criticisms.
Specifically , in a move to recover the debt, AMCON has announced plans to engage international asset tracers to locate and recover assets hidden by recalcitrant debtors offshore including those masqueraded under Special Purpose Vehicles (SPVs).
This decision was revealed by Gbenga Alade, managing director/chief executive officer, during a meeting with some stakeholders in Lagos on Monday.
Alade claimed that since the new management took over about five months ago, they have successfully collected approximately N100 billion from several high-profile debtors and revised the sale of some assets.
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The managing director commended President Bola Ahmed Tinubu, CBN Governor, the Federal Ministry of Finance, the Attorney General of the Federation, and the National Assembly for their support in their drive to recover debts transferred by banks to AMCON during the different phases of Eligible Bank Asset (EBA) acquisition.
The commendation, according to the analysts, confirms the huge support through legislations, among others, extended to the corporation in the past,but, which were rather jettisoned for political expediency and patronage.
Intact, the CEO told his audience that the Chairman of the House Committee on Finance has pledged to name and shame obligors who have yet to repay their debts at a major stakeholders’ conference that would hold before the end of the year.
In what appears as admittance of the enormity of tasks before the corporation under his leadership, Alade highlighted oil and gas, power, telecommunications and aviation as the four key sectors that the new management has chosen to focus.
According to Alade, resolving issues in these sectors would accelerate growth and development, noting that AMCN remains committed to its mandate of resolving non-performing loans and stabilizing the Nigerian financial system.
He assured that, by engaging international asset tracers and focusing on key sectors, AMCON will achieve its mandate for the overall interest of the country and its citizens.
