NEWS House probes AMCON’s N5trn debt, ac­qui­si­tion of as­sets

Daily Trust - - NEWS - By Ibrahim Kabiru Sule

Mem­bers the House of of Rep­re­sen­ta­tives yesterday launched an in­ves­ti­ga­tion into what they called the huge debt pro­file of the As­sets Man­age­ment Cor­po­ra­tion of Nige­ria (AMCON), to­tal­ing over N5 tril­lion.

The amount of the debt pro­file, ac­cord­ing to the lower cham­ber, has ex­ceeded the debt ceil­ing of the cor­po­ra­tion, which was pegged at N800 bil­lion as es­tab­lished by AMCON Act 2010.

The in­ves­ti­ga­tion, which is to be car­ried out by a yet-to-be con­sti­tuted ad hoc com­mit­tee, will also ex­am­ine the process that led to the ac­qui­si­tion and sale of as­sets, banks, shares and landed prop­er­ties by AMCON.

In a mo­tion spon­sored by Rep Gabriel Onyen­weife, the House tasked the com­mit­tee to ver­ify whether the process of the ac­qui­si­tions was con­sis­tent with due process and ex­tant law.

The law­mak­ers said the in­ves­ti­ga­tion was to equally de­ter­mine whether fraud­u­lent ac­tiv­i­ties did not char­ac­terised the process and whether there have been loses in­flicted to Nige­ri­ans as a re­sult of the AMCON’s ac­qui­si­tion of the as­sets, shares and the banks.

Rep Onyen­weife told the House that the cor­po­ra­tion has al­ready vi­o­lated the pro­vi­sion con­tained in its Act, by ex­ceed­ing its ceil­ing by N4.2 tril­lion.

“The AMCON bal­ance sheet has a short­fall of N3.8 tril­lion and that the geo­met­ric ac­cu­mu­la­tion of debts by AMCON will no doubt en­dan­ger the dwin­dling na­tional re­serves put at USD30 bil­lion.

“The ac­cu­mu­lated debts of AMCON in five years were more than the debts owed by the fed­eral gov­ern­ment of Nige­ria to Paris Club of cred­i­tors in 50 years,” he said.

The House, in pass­ing the res­o­lu­tion, noted that the probe was borne out of the need to save AMCON from de­feat­ing its core val­ues that led to its es­tab­lish­ment in 2010,” he said.

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.