Senate worries over N5.4tr debt owed AMCON

SENATE yesterday expressed concern over the non-recovery of the N5.4 trillion debt owed the Asset Management Corporation of Nigeria (AMCON) by some firms.
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Senate Committee on Banking, Insurance and other Financial Institutions at a meeting with the management of AMCON at the National Assembly was disturbed by the fact that such debts remained unrecovered even when government had to borrow money to fund the 2016 budget.
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At the meeting which was held ‎behind closed doors, members of the committee led by the chairman, Rafiu Ibrahim, were said to have expressed reservations about the rising level of debts just as it tasked the corporation to redouble its efforts towards recovering the debts.

Managing Director of AMCON, Ahmed Kuru who spoke with journalists shortly after the meeting confirmed that the Senate was in support of every step that would facilitate the recovery of the debts.

‎”We have seen that most of those indebted to AMCON are rich men who fly in private jets, live in big mansions and have taken money and they are not paying back.

The Senate is really disturbed and we are ready to do anything under the law to ensure that the N5.4trillion that is outstanding obligation of AMCON is repaid.

“It is disturbing that, less than 300 people account for more than 80 percent of the outstanding obligation to AMCON.

“It is not criminal to borrow money but it is inappropriate not to pay back .

From the current body language of the government and from what I have seen from the Senate, there is a harmony and consensus as to the fact that these funds must be paid back.”‎ Kuru added.

Meanwhile, the huge debt profile of AMCON is the subject of a comprehensive investigation being conducted by the House of Representatives.

‎The investigation was sequel to a motion it adopted late last year in which it also agreed to examine whether the acquisition and sale of assets, banks, shares and landed property by AMCON was consistent with due process and extant laws.

The committee was to also ascertain if the operations of AMCON were devoid of fraud, and determine losses , if any, suffered by Nigeria as a result.

The resolution of the House was sequel to the passage of a motion by a member, Gabriel Onyenweife who claimed that AMCON had accumulated over $25 billion debts as against the mandate of a debt profile of N800 billion as a ceiling, and thus has exceeded its debt ceiling by N4.2trillion.