As House Probe Otedola/AMCON Deal, THEWILL Publishes Otedola Assets
… AMCON MD Tells THEWILL The Deal Has Not Been Executed
SAN FRANCISCO, October 03, (THEWILL) – As the House of Representatives prepares to launch an investigation into the proposed settlement of debts owed the Asset Management Company of Nigeria (AMCON) by controversial businessman, Mr. Femi Otedola, THEWILL Tuesday exclusively obtained a list of all the local assets of the former Forbes billionaire who made the Forbes list courtesy of reckless borrowing without plans to repay.
Before AMCON moved in to mop of bad loans owed Nigerian banks by businesses and individuals, Otedola's company, Zenon Petroleum owed five (5) banks: Access Bank Plc, UBA Plc, Zenith Bank Plc, FCMB Plc, and Guaranty Trust Bank Plc N192.423, made up of principal sum and accrued interest and fees. Otedola however accused the banks particularly Access Bank Plc of ripping him off with wrongful deductions and excessive fees.
As Otedola borrowed recklessly to expand his oil business and lifestyle within a period of 10 years, he pledged assets including his Mekunwen Road, Ikoyi residence he had presumably acquired with the loans.
But AMCON's announcement that it reached an agreement with Otedola to pay only N140.999 billion as final settlement backed with a privacy clause has ignited debate and fueled suspicion that the process may not have been fair to taxpayers whose cash was used to set up the Corporation.
AMCON's Managing Director, Mustafa Chike-Obi this morning told THEWILL that Otedola proposed to forfeit assets and an “undisclosed” sum of cash as part of the final settlement, adding that the board of AMCON had accepted the proposal but the deal is awaiting execution.
Mr. Chike-Obi further explained that the Corporation acted within its mandate and the settlement with Otedola, whose non-performing loan is the largest in the financial sector, is a historic deal for Nigeria and the economy.
“It is a proposed settlement… but yet to be executed. We put the interest of Nigeria and the local economy first. AMCON has no other agenda apart from those included in its mandate.
“This settlement is a wonderful thing for Nigeria. This is a historic transaction. We shouldn't view this transaction with suspicion but with praise for AMCON to have successfully recouped this bad loan alongside over 12, 000 others owed Nigerian banks,” he said.
When we pressed him for details of the settlement, the Managing Director cited the privacy clause in the proposed deal saying the corporation would abide by it.
THEWILL can however report that AMCON as a fully independent body vested with powers to operate and take decisions without seeking approval from authority may have acted within the law and did not have to brief the National Assembly on the deal.
Section 1 no 4 and Section 6 no 3 of the Act setting up AMCON reads respectively, “Except as otherwise provided in this Act, the Corporation shall be independent in the discharge of its functions.”
“Except otherwise provided in this Act, the Corporation may carryout any of its functions without the consent or approval of any other person or authority.”
However in keeping both parties honest, THEWILL has published below a confidential document from an anonymous source detailing all assets Otedola pledged as collateral for the loans.
Last week, Amperion Power Distribution Ltd, a consortium that includes Forte Oil, a company that Otedola maintains large shareholding emerged the preferred bidder for Geregu Generating Company, with a bid of $132 million.
The businessman would have been unable to raise fresh capital to purchase a stake in the power company because of a central bank directive that barred banks from lending to individuals and firms with bad loans.