Why AMCON Declined Comment on Awosedo’s Grant Properties Debt Scandal
The Asset Management Corporation of Nigeria (AMCON) has denied comments initially ascribed to it in some online publications regarding a pending debt-related issue between one Olajide Awosedo, the Chairman of Grant Properties Limited and AMCON.
AMCON in a release on Tuesday by the spokesperson of the corporation, Jude Nwauzor urged the general public to disregard the stories.
However, SIGNAL can report that AMCON decided to go silent on the issue owing to its mandate which restricts the body from joining issues with obligors on the pages of newspapers.
The Asset Management Corporation of Nigeria (AMCON) was established on the 19th July 2010, when the President of the Federal Republic of Nigeria signed the AMCON Act into Law.
AMCON was created to be a key stabilizing and re-vitalizing tool aimed at reviving the financial system by efficiently resolving the non-performing loan assets of the banks in the Nigerian economy.
In order to carry out its mandate AMCON is empowered to acquire none performing loans owed to Eligible Financial Institutions “EFI’”, as “Eligible Bank Assets “EBA”. Since its creation, AMCON has purchased and manages hundreds of EBA, many of which it has successfully resolved amicable with the Obligors without resort to litigation.
Over time, AMCON has also had to deal with some recalcitrant obligors who are able but unwilling to meet their obligations. Even in such cases, AMCON’s preferred mode of resolving such debts is to engage with such obligors to reach an out of Court settlement even where it has had to take recourse to litigation or appoint Receiver Managers over the Assets of such Obligors.
A senior executive of the corporation who did not want to be named told SIGNAL on Tuesday that “AMCON is unable to comment publicly on the details of any particular EBA, more so, when there are on-going Court proceedings in respect of such an EBA which makes the matter Sub Judice.”
However, it suffices to say that in resolving any debt issue, AMCON which is staffed by highly qualified and experienced professionals adheres, to strict guidelines and that every decision is subject to close scrutiny and goes through a rigorous approval process leading to approval by its EXCO. No one individual can take any decision on any EBA.
Clarifying the issues further, the source said, “The law guides the appointment of a Receiver Manager and once appointed, the performance of such a Receiver’s duties are also subject to law. Any person aggrieved by the actions of any Receiver Manager has recourse to law to redress any such grievance. AMCON for its part has always ensured that Receiver Managers appointed by it comply with the law and follow due process in the performance of their duties.
“As a last resort, AMCON is sometimes forced to resort to realisation of collateral held as security for the EBA purchased from an EFI. In such cases, it ensures that it scrupulously follows the law and that where appropriate, judgment and orders of Court are obtained to authorise such actions. This is particularly true of situations were an obligor publicly states that it is not willing to meet its obligations.
“Persons dealing with AMCON and its Receiver Managers in such cases can be confident that AMCON acts only according to law and within its rights as a creditor. They also have AMCON’s full indemnity backed up by the financial might of the Federal Government of Nigeria.”
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