SAN FRANCISCO, November 19, (THEWILL) – The House of Representatives on Thursday told the Assets Management Corporation of Nigeria (AMCON) to immediately halt the sale of assets of banks and companies that failed to meet their financial obligations on the non-performing loans.
Some of the assets put for sale by AMCON include: 32 petroleum product storage tanks, otherwise known as tank farms, in Apapa worth several billions of naira.
Furthermore, the House directed the Committee on Banking and Currency chaired by Hon. Jones Onyereri to investigate the alleged under-valuation and purchase, price racketeering of eligible bank assets, and non-compliance with due process by the Corporation.
The resolution was passed following the adoption of the motion sponsored by Danburam Abubakar.
In his lead debate, Abubakar, who noted that AMCON Act 2010 empowered the Corporation to effectively resolve non-performing loans assets of all banks in Nigeria, stressed the need for strict adherence to the provision of the AMCON legal framework.
He explained that the corporation had put up for sale a total of 32 petroleum product storage tanks in Apapa worth several billions of naira, sequel to the inability of the oil companies to pay up their debts four years after the management of the Corporation took over their non-performing loans.
The lawmaker however noted that the process leading to the proposed sale of the 32 tank farms had been alleged to be in contravention of Section 28 of the AMCON Act 2010, which stated that “the valuation of, and purchase price of eligible bank assets shall be determined in accordance with guidelines issued from time to time by the Central Bank of Nigeria (CBN).
“Provided that in prescribing parameters for the valuation of, and purchase price of, eligible bank assets, the CBN shall obtain and be guided by independent advice, publish and make widely available in the valuation basis and ensure consistent application of the valuation parameters.”
He argued that the alleged under-valuation and sale of these assets could lead to loss of revenue for the Federal Government, promote inefficiency, waste, corruption and defeat the essence of the AMCON Act.
