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We’ve Made Progress in Debt Recovery, Says AMCON

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The Asset Management Corporation of Nigeria (AMCON) has said it has recorded significant progress in debt recovery since it published its top 100 delinquent debtors earlier in the year.

Speaking in Lagos, AMCON Head of Corporate Communications, Jude Nwauzor said although the corporation is yet to publish new list of debtors, there has been positive developments in the areas of takeovers of assets, recoveries and resolutions. He said the corporation is in court with a good number of these obligors and  could not reel out names.

On hindrances to debt recovery, he said: There are a lot of factors. For example, we are in court with a good number of obligors and you know the wheel of justice in Nigeria grinds slowly, which presents some kind of temporary or extended cover for these debtors.

“If it is possible for the courts to give accelerated hearing to AMCON-related cases, recoveries would be a lot easier. Secondly, the harsh economic realities pose significant challenge. Nobody will shy away from the fact that the country has slipped into recession, which makes it even more difficult for both businesses and individuals.”

Continuing, he said: “If that is the situation now, then you can imagine how difficult it has become for AMCON to recover or even dispose assets. But in the face of all these challenges, AMCON is undaunted because my MD/CEO reminds every member of staff in the Corporation that AMCON’s job remains a national assignment because the success of the corporation has direct effect on the success of the Nigerian economy.”

AMCON MD’s first one year in office

Assessing AMCON Managing Director/CEO, Ahmed Kuru’s first year in office, he said:

“I believe he has achieved a lot because he sort of hit the ground running, as it were, when he assumed office on August 18, last year. He has been engaging obligors in finding permanent resolution to their debts and I can tell you that a good measure of progress has been recorded. Do not forget he is dealing with debts that were hard-core with the commercial banks in the first instance before they arrived AMCON.”

Speaking further, he said: “Aside that, he has seriously sharpened the business processes in the corporation in addition to sound corporate governance. His administration in AMCON adopted aggressive recovery strategies that have led to increased repayment from hitherto recalcitrant obligors. He has also introduced some value enhanced exit plans through partnerships with investors to revive failing companies in AMCON’s portfolio, which will attract the much sort after foreign investors to the country.”

“Part of his strategy was the introduction of Asset Management Partners (AMPs) to assist the corporation in recoveries. The AMPs are consortiums with specialist skills required to ensure recovery and debt resolution; banking, legal, valuation and accounting. The move will make it possible for AMCON to resolve over 6,000 accounts with loan balances of N100 million and below,” he said.

Nwauzor explained that within the period, AMCON has successfully divested from other intervened banks outside of the bridged banks; intervened in Peugeot Automobile Nigeria (PAN), a leading automobile manufacturer in the country, which saved a lot of jobs and guaranteed business continuity; repaid coupon on Central Bank of Nigeria (CBN) Note totaling N241.7 billion ($1.2 billion); repaid interest on CBN Debenture totaling N15 billion ($76.3 million) as well as working to stabilise the aviation sector through key strategic interventions in some of them that are experiencing distress due to the current economic situation in the country”.

“Without sounding immodest, I am very sure President Mohammadu Buhari must be impressed with his choice of Ahmed Kuru to steer the ship of AMCON at this challenging time in the history of the country. I say that because following a request from my boss, Mr. President, a few months back, inaugurated what he called Presidential Inter-Agency Committee on recovery of loans owed Asset Management Corporation of Nigeria. The committee is chaired by no other person than the Attorney-General of the Federation and Minister of Justice, Abubakar Malami,” he added.

Forces against AMCON’s operations

Speaking on why some people are against AMCON and its activities despite its achievements in the industry, the AMCON spokesman said:I would like you to take a critical look at the crop of individuals that are against AMCON; they fall within the category of die-hard debtors, who contributed in destabilising the Nigerian economy. Well-meaning Nigerians are happy with AMCON activities except a few that are heavily indebted, but trying hard to circumvent the law.”

Furthermore, he said: “Again, mention one disgruntled person that is not on the list of AMCON debtors. Those assets AMCON took over, which sparked off the spate of so-called attacks on AMCON, were done after we have explored all avenues and channels of peaceful resolutions; having fulfilled due judicial procedures. But unfortunately for them, sponsoring media articles against AMCON or hiring the ‘so-called industry experts’ will not erase the huge debt they owe the corporation and I am sure you know that such campaigns of calumny only strengthens our MD because he is not deterred and will never be deterred by such distractions.”

On whether AMCON will takeover more businesses

Speaking on the likelihood of the corporation taking over more businesses in the last quarter of this financial year, Nwauzor said:It all depends on a number of legal and business dynamics. What I know is that AMCON will continue to take careful steps in discharging its assignments within the ambit of the law. In a subtle manner, the corporation will aggressively and decisively coerce all delinquent debtors to the path of resolution, especially now that we are in an era where sacred cows are no longer recognised or celebrated in Nigeria. Remember that Kuru proved himself as a change agent and a turn-around expert before arriving AMCON. He will replicate the same feat in AMCON.

“AMCON, more than ever before, has sharpened its resolution mechanism. However, obligors are given the opportunity to come forward; otherwise the full extent of the AMCON Act would be applied without favours.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Government

Mali Sworn In Bah Ndaw as Transition President

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Mali’s interim president, Bah Ndaw, chosen to head a transitional government following a coup last month, was sworn in during ceremonies in the capital Bamako on Friday, AFP journalists witnessed.

A committee appointed by the junta which seized power on August 18, toppling President Ibrahim Boubacar Keita, selected Ndaw, a 70-year-old retired colonel, as interim president.

Ndaw is due to lead a transition government for a maximum of 18 months before organising national elections.

Colonel Assimi Goita, who led the military junta, was also sworn in as interim vice president.

The ceremony on Friday took place in a theatre filled with officials dressed in military fatigues, senior judges, and foreign diplomats.

During the ceremony, Supreme Court Chief Prosecutor Boya Dembele said the challenges facing both men were “enormous”.

“It will truly require a reformulation of the state,” said the judge, dressed in red fur-lined robes.

The swearing-in comes as the fragile Sahel state’s neighbours have leaned on the military junta to appoint civilians as interim president and prime minister.

The 15-nation Economic Community of West African States (ECOWAS) slapped sanctions on the poor country on August 20 to push for a swift return to civilian rule.

A decision by the bloc on whether to ease the measure is possible on Friday, according to former Nigerian president and ECOWAS mediator Goodluck Jonathan.

“We are optimistic that this event will signal the beginning of the return to normalcy in Mali,” he said on Twitter on Thursday night, referring to the swearing in of interim-government leaders.

Last month’s coup followed weeks of mass protests against Keita, spurred by frustrations over a brutal jihadist conflict, perceived corruption and the country’s slumping economy.

Mali has struggled to quell an eight-year-old Islamist insurgency which has claimed thousands of military and civilian lives.

AFP

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Imo State Bans Traffic Agents, Task Forces Over Bribery

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Uzodinma Bans Traffic Agents, Task Forces Over Bribery

The Executive Governor of Imo State, Hope Uzodinma, has restricted all traffic agents and task forces from operating in the state over bribery and extortions.

Declan Emelumba, the state commissioner for Information and Strategy, disclosed this at the Government House in Owerri on Thursday.

Checks revealed that the task force team that operates from Heroes’ Square still demands as much as N27,000 fines from people arrested. A shocking situation that has plunged the limited resources of hardworking Imo people.

However, the information commissioner, who described the task force as “illegal”, said the state government has sanctioned its personnel.

Emelumba said, “The governor has since banned all traffic agents and task forces in line with the desire of the people.”

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FG Puts Nine-year Presidential Jet Up For Sale

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The Federal Government has put up for sale a jet in the presidential fleet, Hawker 4000 aircraft with registration number, 5N-FGX/: RC 066.

The business-size jet which entered into service in December 2011, has capacity for nine passengers and three crew members.

Findings indicate that only 73 Hawker 4000 aircraft were manufactured by Hawker Beechcraft between 2001 and 2013 and they were sold for $22.91m each as of 2012.

The FG in a published advert on Wednesday disclosed that the aircraft with a range of 3,190-nautical mile had flown for 1,768 hours.

It said the aircraft could be inspected at the Presidential Air Fleet’s hangar located at the Nnamdi Azikiwe International Airport, Abuja.

Interested buyers were requested to submit their closed bid to the Chairman, Committee for Sale of Aircraft, Office of the National Security Adviser, care of Special Services Office, Office of the Secretary to the Government of the Federation.

In an advertisement published in some national dailies on Wednesday, prospective buyers were directed to submit a refundable bank draft for $50,000 to the committee with the bid.

It also said that all the bids should be quoted in dollars.

The notice read, “Please note that all bids must be submitted within one week of this publication.

“Background check is required as a pre-qualification for the bid. Prospective bidders who want to inspect the aircraft will be granted access within one week from this advertisement.”

The Presidency had similarly in 2016 put up for sale two presidential aircraft, a Falcon 7X executive jet and Hawker 4000, in line with the directive of the president, Major General Muhammadu Buhari (retd.), that aircraft in the Presidential Air Fleet should be reduced to cut down on waste.

The government also said some aircraft in the fleet would be handed over to the Nigeria Air Force for its operations. It could not be confirmed if this had been done.

According to the Presidency, the PAF has 10 aircraft and they include Boeing Business Jet (Boeing 737-800 or Air Force One), one Gulfstream 550, one Gulfstream V (Gulfstream 500), two Falcons 7X, one Hawker Sidley 4000, two AgustaWestland AW 139 helicopters and two AgustaWestland AW 101 helicopters.

Reports said each of the two Falcon 7X jets were purchased in 2010 for $51.1m, while the Gulfstream 550 costs $53.3m.

The Senior Special Assistant, (Media and Publicity) to the President, Garba Shehu, had yet to respond to inquiries on the number of presidential aircraft sold so far, as of the time of filing this report.

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