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Amcon Liabilities Can Be Paid – Cbn

Source: thewillnigeria.com
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SAN FRANCISCO, March 16, (THEWILL) – The Central Bank of Nigeria (CBN) has assured that with the inflow of N250 billion generated yearly through the Sinking Fund (at 15% interest), the acquired assets of the Asset Management Corporation of Nigeria (AMCON) can pay off its liabilities by 2024.

This was disclosed on Wednesday by Tokunbo Martins, Director, Banks Supervision, CBN, at the investigative public hearing on ‘undue accumulation of debts and alleged sale of banks by AMCON’ held at the instance of the House of Representatives.

She however confirmed the exposure of N4.5 trillion out of the N6.6 trillion liabilities of AMCON adding that with improved economy, the interest accrual might rise to 20 percent or 25 percent.

Martins, in her statement affirmed that the sale of the failed banks by AMCON followed due process, and confirmed that the buying banks are fit and proper as they have the required shareholders fund and capacity to raise long term facility.

Ahmed Kuru, Managing Director/CEO, AMCON, at the hearing, disclosed that the toxic assets worth N3.3 trillion book value as at the time of purchase was bought at N1.7 trillion but presently has over N6 trillion liabilities.

Kuru maintained that the process for the sale of the banks followed due process and claimed to have no idea of various infractions and has no idea of the content of the sale of the banks, as well as misrepresentation of Enterprise Bank’s property located in Marina Lagos acquired by AMCON

On the acquisition of Aero Contractor Airline, and Arik Airline, Kuru explained that it owns 60 percent equity in Aero in addition to N12 billion liabilities and had depleted its 11 fleet in 2013 to three before the taking over while it resolved not to take-over Arik Airline because the company is a strong airline and a security business.

Albert Adeogun, Chairman of the Adhoc Committee, revealed that the Bureau of Public Procurement (BPP) had in a letter sent to Attorney General of the Federation (AGF) and read to the stakeholders, alleged that AMCON failed to follow due process before the sale of the banks.

He therefore requested for untainted, unbiased, cogent and verifiable evidence that will assist the Committee to come to a fair, just and impeccable conclusion, adding that

Written by David Oputah