80% of AMCON’s assets not in our custody – MD
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Thu, 17 Mar 2016 || Nigeria,
The Managing Director of the Assets Management Corporation of Nigeria (AMCON), Ahmed Lawan Kuru, yesterday said 80 per cent of the corporation’s total assets are yet to be in the full custody of AMCON, due to the over 3, 000 court cases instituted against the full takeover of the assets.
“So out of all the N1.8 trillion worth of assets, it is only about 20 percent of them that is with AMCON,” he said.
“So out of all the N1.8 trillion worth of assets, it is only about 20 percent of them that is with AMCON,” he said.
Kuru spoke before the ad hoc committee of the House of Representatives investigating “undue accumulation of debts and alleged fraudulent sales of banks by AMCON” yesterday in Abuja.
He said the corporation had a total liability of N6.6 trillion owed the Central Bank of Nigeria (CBN) following the acquisition of two failed commercial banks.
He said CBN’s sinking fund used by the corporation to buy “the bad assets” of the failed Mainstreet and those of Enterprise Banks in 2012, including the accrued interest will grow to N6.6 trillion by 2024 payment deadline.
At the end of bidding process of the failed banks by AMCON, Skye Bank acquired Mainstreet bank, while Heritage Bank took over Enterprise bank.
Despite the total liability, he said, “if today we sell all the assets of AMCON at the purchasing price, we would generate between N1.4 - N1.8 trillion. The key thing here is sinking fund.”
When asked of an alleged favour to some banks by AMCON during the process of selling the failed banks, the MD said he was not aware of that, stressing that due process was followed by the then AMCON management.
On his part, the managing director of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, said part of the constraint bedeviling the optimum operations of AMCON was the small number of members in the board of directors, which was “overwhelmed” with issues to sort out at their meetings.
He said with over 12, 000 accounts inherited from the acquisition of the two failed banks by AMCON and a total of N415 billion deposits, the expansion of the board would be the alternative to save the corporation from its present “quagmire.”
When asked, as a member of the board before its dissolution, whether AMCON could settle its huge debts profile, Ibrahim said if more representation of independent outsiders would be made into the AMCON’s board, with the downward review of interest by CBN, the N6 trillion debt would be settled by the corporation.
However, CBN’s director of Banking Supervision, Tokumbo Martins, said AMCON was presently owing the apex bank N4.5 trillion, but would incur interest that would raise it to N6.6 trillion by 2024.
The committee, chaired by Rep Albert Abiodun Adeogun, agreed that AMCON “is in critical condition”, that must be saved before “tax payers money” translates into uncertainty.
Read more at http://www.dailytrust.com.ng/news/business/80-of-amcon-s-assets-not-in-our-custody--md/138243.html#k5tFlyHgU1Fw2f1I.99
He said the corporation had a total liability of N6.6 trillion owed the Central Bank of Nigeria (CBN) following the acquisition of two failed commercial banks.
He said CBN’s sinking fund used by the corporation to buy “the bad assets” of the failed Mainstreet and those of Enterprise Banks in 2012, including the accrued interest will grow to N6.6 trillion by 2024 payment deadline.
At the end of bidding process of the failed banks by AMCON, Skye Bank acquired Mainstreet bank, while Heritage Bank took over Enterprise bank.
Despite the total liability, he said, “if today we sell all the assets of AMCON at the purchasing price, we would generate between N1.4 - N1.8 trillion. The key thing here is sinking fund.”
When asked of an alleged favour to some banks by AMCON during the process of selling the failed banks, the MD said he was not aware of that, stressing that due process was followed by the then AMCON management.
On his part, the managing director of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, said part of the constraint bedeviling the optimum operations of AMCON was the small number of members in the board of directors, which was “overwhelmed” with issues to sort out at their meetings.
He said with over 12, 000 accounts inherited from the acquisition of the two failed banks by AMCON and a total of N415 billion deposits, the expansion of the board would be the alternative to save the corporation from its present “quagmire.”
When asked, as a member of the board before its dissolution, whether AMCON could settle its huge debts profile, Ibrahim said if more representation of independent outsiders would be made into the AMCON’s board, with the downward review of interest by CBN, the N6 trillion debt would be settled by the corporation.
However, CBN’s director of Banking Supervision, Tokumbo Martins, said AMCON was presently owing the apex bank N4.5 trillion, but would incur interest that would raise it to N6.6 trillion by 2024.
The committee, chaired by Rep Albert Abiodun Adeogun, agreed that AMCON “is in critical condition”, that must be saved before “tax payers money” translates into uncertainty.
Read more at http://www.dailytrust.com.ng/news/business/80-of-amcon-s-assets-not-in-our-custody--md/138243.html#k5tFlyHgU1Fw2f1I.99
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