Asset Management Corporation of Nigeria (AMCON) has said that the slow pace of the nation’s court processes and sometimes conflicting orders by the courts are frustrating the recovery of N3.6 trillion outstanding bad debts acquired from the banks.
AMCON Managing Director/Chief Executive Officer, Mr Ahmed Kuru disclosed this 2022 edition of the House of Representatives Committee on Banking, and Currency retreat with the Management of the Corporation in Lagos, adding that the Corporation has so far recovered N1.4 trillion out of the N5 trillion bad debt acquired from banks.
The retreat was themed, “Asset Recovery as a tool for Enhanced growth, and Stability of the Banking sectors sustaining the Impact and Bridging the challenges of AMCON.”
Represented by AMCON’s Group Head, Asset Management Directorate, Mr Matthew Coker, Kuru disclosed that the N1.4 trillion recorded so far comprises cash N681 billion; Property Forfeiture N279 billion; Share Forfeiture N140 billion; and other strategic assets N208 billion. He added that a total cash recovery of over N116.9 billion has been recovered on Polaris EBAs from date of acquisition to date.
Kuru however told the lawmakers that despite the Special Powers as provided by its enabling Act, AMCON still struggled with the implementation due to the nation’s judicial system.
He said, “Honorable members, the Corporation’s recovery processes at this point majorly depend on the Judiciary i.e., Obtaining Possessory Orders or Orders for sale. The slow pace of our court processes and sometimes conflicting orders by the Courts, especially at the Federal High Court (FHC), which is our Court of first instance, frustrates the recovery process. There are delays in obtaining dates in the Court to hear AMCON matters.
“Deposit of judgement sum as provided for in the act is not enforced by the Courts, some of the obligors are still active contractors of the government. They carry out businesses with government with debtor company names or other pseudo names and the BOFIA Act that provided for a Special Tribunal on recovery and enforcements would have hastened the adjudication of our matters in Court if the Judiciary had constituted a task force specifically in that regard,” he concluded.