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

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.