Reps to probe AMCON over N5tn debts

The House of Representatives on Wednesday perfected plans to investigate the huge debt profile of the Assets Management Corporation of Nigeria (AMCON).
It was gathered that the lower chamber hopes to set up an ad hoc committee which will also examine whether the acquisition and sale of assets, banks, shares and landed property by AMCON was consistent with due process and extant laws.

Part of the committee’s terms of reference will be to determine whether the Corporation was involved in any infraction among others.

The committee is to report back to the House within six weeks.

The resolution of the House was sequel to the passage of a motion by a member, Hon. Gabriel Onyenweife who claimed that AMCON has accumulated a debt profile of over Five Trillion Naira ( USD 25 billion) as against the mandate of a debt profile of N800 billion as a ceiling, and thus has exceeded its debt ceiling by N4.2 trillion.

“The AMCON balance sheet has a shortfall of N3.8 trillion ( USD 19 billion) and that the geometric accumulation of debts by AMCON will no doubt endanger the dwindling National reserves put at USD 30 billion since the Federal Government is the guarantor of AMCON binds as enshrined in section 27 of the AMCON Act, 2010.”

The lawmaker said that accumulated debts of AMCON in 5 years were more than the debts owed by the Federal Government to Paris Club of creditors in 50 years.

He further states:” Over two trillion was lost in the not too transparent process adopted in the sale of some banks, including Oceanic Bank, Intercontinental Bank, Enterprise Bank, and MainStreet Bank.”

Read also: AMCON seizes G. Cappa property over N1.2 Billion debt

The lawmaker alleged that the disposal of assets such as shares, landed property plant and equipment acquired by AMCON was shrouded in secrecy. “Most of the assets disposed were alleged to have been sold to cronies and close associates of the officials of the corporation without recourse to due process or extant laws.

“If these practices of AMCON are not urgently addressed, the negative impact on the banking sector, which is the soul of the Nigerian economy, will not only impact negatively but will also jeopardize its health.”

The motion was subsequently passed when the Speaker, Hon. Yakubu Dogara called for a vote.

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now