Liabilities of Assets Management Corporation of Nigeria, AMCON, currently stands at N6.6trn, its Managing Director, Mr. Ahmed Kuru, disclosed yesterday. Kuru, while fielding questions from members of the House of Representatives Ad-Hoc Committee investigating alleged fraudulent sale of banks by AMCON, said the figure was arrived at following purchase of bad loans worth N3.3trn.
The committee had raised eyebrows at the Corporation’s huge liabilities, particularly as it owes the Central Bank of Nigeria, CBN, N4.5trn.
Chairman of the committee, Hon. Albert Adeogun queried the liabilities, saying: “About two months ago when we met, you said the liabilities of AMCON stood at N4.5trn, today you say it’s N6.6trn.
What are the components of this liability? Who are your creditors?” Director of Banking Operations at CBN, Tokunbo Martins told the committee that the N6.6trn includes calculated interest which would have accrued to the debt by 2024.
“AMCON looks at its cash flow periodically and the banks generate N250bn annually to AMCON.
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They have assets that can pay off their liabilities and by 2024 when AMCON is expected to wind down, the liabilities would have been extinguished,” she said.
Martins added that due diligence and due process were followed in the sale of Mainstreet and Enterprise Banks. She explained that the buyers, Skye and Heritage Banks were not permitted to use depositors’ funds, but shareholders’ or external funds that would not be called in, in a short while.
“The fact that we have not withdrawn their licenses shows that the buyers are fit and proper,” Martins added.
The committee also queried why AMCON deemed it fit to takeover Aero Contractors for its significant debts, and did not do same to Arik Air.
According to Kuru, Aero was taken over because the airline showed weak corporate governance. He said from a fleet of 15 planes at the start of 2015, there were only three left by the end of the second quarter of that year.
“If we did not intervene, there would be no airline called Aero by 2016. AMCON owns 60 percent equity in Aero in addition to a debt of N12bn. So we also needed to save our money. Arik is a good airline,” he said.
Kuru, however, added that in the next two weeks, AMCON would release its resolution on the airline.
