BUSINESS AMCON, EFCC to go after banks, officials behind bad loan
The Asset Management Corporation of Nigeria (AMCON) and the Economic and Financial Crimes Commission (EFCC) have decided to go after banks and their officials that were instrumental to the abuse and violation of internal processes that led to the huge nonperforming loans in AMCON’s portfolio.
AMCON Managing Director/ Chief Executive Officer, Mr. Ahmed Kuru, and EFCC’s Acting Chairman, Mr. Ibrahim Mustafa Magu, yesterday in Abuja held a high level meeting with the aim to revisit, reinvestigate and duly prosecute such banks and the responsible officials.
Since its establishment, AMCON has acquired debts from 22 banks worth N3.7 trillion and provided financial accommodation to 10 banks of about N2.2 trillion.
He observed that despite AMCON’s recovery efforts, the corporation still held unresolved loans in excess of N4.6 trillion representing about 75% of the total national budget.
The MD expressed concern that failure on the part of AMCON to resolve the debts would have far-reaching implication for the nation at large.
Magu said: “most the obligors may not have acted alone in their unwillingness to repay, but may involve the connivance of some of the bank officials whose motive was to cheat the banks ab-initio. “In the appropriate circumstances, these bankers would also be called upon to account for their roles in granting these questionable of facilities.”
It could be recalled that, a total debt obligation of over N4.6 trillion is AMCON by recalcitrant debtors across the country.
The EFCC Acting Chairman, who welcomed the AMCON boss and his team, described the assignments of both agencies of government as “very tough, overwhelming and challenging.” He noted, however that it was for that reason that EFCC established AMCON Desk with dedicated EFCC officials that ensured that all AMCON related cases in EFCC received speedy attention.
Magu assured that the AMCON Desk at EFCC would continue to be functional, adding that the EFCC was willing to increase the number of personnel on the desk if so required and to establish a Lagos branch if necessary to make sure the huge loans were recovered in the interest of the Nigerian economy.