THE MANY BATTLES OF KURU

Cletus Adole pays tribute to Ahmed Kuru, AMCOM’s gentle but firm chief executive chasing after billionaire debtors

Ahmed Kuru is imbued with a sense of urgency. Wherever you spot the dapper former banker who runs the Asset Management Corporation of Nigeria (AMCON), the overwhelming impression is that he is a man on a mission with a tight deadline which he is determined to make a success of. That is what comes across whether he’s speaking to the media, addressing a conference or engaging in the many other activities that come with the territory. And it cannot be otherwise. With AMCON’s sunset clause due to kick in by 2024 when the corporation will have to wind up its operations, the job of delivering on AMCON’s mandate of being a key stabilizing and re-vitalizing tool for reviving the non-performing loan assets of banks has assumed an understandable measure of urgency.

To say the obvious, leading an intervention agency with a mandate as important, sensitive and time-bound as AMCON’s is not a tea party. It involves taking decisive actions and wielding the big stick when necessary against Nigeria’s billionaire debtors – many of whom have made a career out of walking away from their responsibilities. Kuru is driven by two broad objectives: achieving positive institutional outcomes for AMCON by recovering Nigeria’s investment in distressed firms and saving the associated sectors, and by extension the economy, from the kind of crisis that would ensue if the huge debts are not managed well.

The enormity of his mandate notwithstanding, Kuru is always the gentleman. Even when he is taking strong action against the debtors, his fundamental respect for the big picture and due process shines through. He is laser-focused on achieving his objective but his fundamental humanity is also very evident. Kuru’s style is firm but also very fair.

This firmness is reflected in the strong actions the corporation has taken against uncooperative debtors. A good example was the publication last year of a list of 105 debtors which featured many politically powerful Nigerians. The advertorial published by AMCON which named the high profile debtors was clear that the debtors forced the hand of the corporation by refusing to take advantage of opportunities to resolve their indebtedness. The message was simple: AMCON will give you a fair chance, but if you don’t take it, the corporation will not shirk its responsibility to deal with you appropriately. The door is open but there will be consequences if you don’t step in”.

AMCON’s strategy is a response anchored on its difficult experience with the recalcitrant debtors. As Kuru puts it: “They are getting smarter by the day and getting desperate”. This desperation has led many of these individuals to approach the courts in the hope that they can stall the debt resolution process for years, possibly decades. Some debtors have even succeeded in tying the corporation in lawsuits and denying it access to relevant assets.

In response, Kuru is in turn revising the strategies of the corporation. One component of these, he says is “fine-tuning the legal framework so that we can respond to the new approach being taken by some

KURU IS DRIVEN BY TWO BROAD OBJECTIVES: ACHIEVING POSITIVE INSTITUTIONAL OUTCOMES FOR AMCON BY RECOVERING NIGERIA’S INVESTMENT IN DISTRESSED FIRMS AND SAVING THE ASSOCIATED SECTORS, AND BY EXTENSION THE ECONOMY, FROM THE KIND OF CRISIS THAT WOULD ENSUE IF THE HUGE DEBTS ARE NOT MANAGED WELL

of the obligors”. It is expected that the ongoing efforts to amend the act establishing AMCON will further empower it to go after its debtors. The corporation is also working with the judiciary to set up a framework that will allow for the resolution of some of its pending court cases through Alternative Dispute Resolution (ADR) methods. ADR is expected to add a lot of value to AMCON’s debt recovery efforts because it is typically faster, less expensive and less public than regular litigation.

As Kuru explores various strategies to achieve AMCON’s mandate, he says he is pleased with the amount of goodwill and support from the agencies that play a role in the discharge of AMCON’s responsibilities. This includes the Economic and Financial Crimes Commission, the Office of the Attorney General, the Debt Management Office, the Federal Ministry of Finance and the Central Bank of Nigeria. Also, media coverage of the efforts to implement ADR and review existing laws show that AMCON enjoys a great deal of cooperation from the National Assembly and the judiciary respectively. This might seem like magic to an observer of some of the strong measures that have been taken by AMCON against debtors who are known to have influence.

Perhaps the secret to AMCON’s harmonious relations with these organizations lies partly in Kuru’s people skills. During media interviews Kuru is always straight to the point and professional on the debt issues without courting unnecessary controversy and contention. Ever conscious of the weight of responsibility on his shoulders, he constantly reminds Nigerians that the monies that AMCON is working to recover belong to the country and that the corporation needs the support of all in order to forestall further economic crisis.

Already, it is well known that a great deal of crisis has been averted in various industries thanks to AMCON’s interventions. A notable example is the aviation industry which accounts for over 90 per cent of the non-performing loans purchased by AMCON. This financial rescue by AMCON has prevented high profile airlines like Aero Contractors and Arik Air from going out of business. Kuru says that AMCON, as part owner of these companies is not simply interested in selling them and waking away. Rather, the corporation is seeking investors that will ensure that the airlines remain profitable.

And that has always been a priority of the corporation throughout all its interventions in various sectors: purchasing non-performing loans and restoring distressed companies to better health. In the banking sector where Kuru served in many capacities, AMCON’s exploits are well documented. The corporation acquired 12,537 non-performing loans worth N1.7 trillion from 22 financial institutions following the 2008 global financial crisis. Since then, AMCON has worked to rescue banks from collapse, through bail out, bridge banking and in some cases, outright takeover. Over the years, these measures have helped to save thousands of jobs and have secured depositors’ funds.