AMCON Committee to FG: Don’t Patronise Debtor-contractors

•Senate appeals to judiciary to comply fully with provisions of AMCON Act

Deji Elumoye in Abuja

The inter-ministerial committee set up by the federal government to recover debts owed the Asset Management Corporation of Nigeria (AMCON) has advised the federal government not to extend patronage to contractors indebted to the federal government.

This was just as the Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani has decried the fact that some obligors of AMCON still have the audacity to shamelessly face Nigerians to seek positions in public office in the forthcoming 2023 general elections, after their failure to meet basic financial commitment, whilst others are busy displaying their wealth with audacity believing that it would take long before anybody would touch them.

The inter-agency committee set up on the recovery of debts owed to AMCON yesterday submitted its report to the federal government with a call for strict implementation of relevant laws including the AMCON Act, that ensures that chronic debtors cannot benefit from government contracts and projects except with due diligence clearance from AMCON.

The Committee led by its Chairman, Prof. Bolaji Owasonoye, who is also the Chairman of the Independent Corrupt Practices Commission (ICPC) stated this while submitting its Interim Report to the Vice President, Prof. Yemi Osinbajo, at the State House, Abuja.

Specifically, the Committee proposed an advisory to the federal government that going forward, “all AMCON debtors must not be allowed to transact business or enjoy patronage with any government agency whatsoever, except clearance is obtained from AMCON on the debt status of such obligors.”

Owasonoye added that between 2020 and 2021, AMCON made significant recoveries which was highlighted in the report.

According to him: “Within the period under review, AMCON witnessed 10 per cent growth in the recovery performance across various asset classes.

“For instance, in 2020, the sum of N146 billion was recovered, while in 2021, the sum of N161 billion was also recovered. The recovery outlook for 2022 is also looking positive and the Committee will not relent in its effort in engendering more recoveries.”

He added that the, “Committee will continue its assignment with the institution of bankruptcy proceedings, tax infraction, inquiry as well as other strategies to ensure the obligors are brought under the recovery net of AMCON.”

The Committee Chairman further noted that the Committee immediately commenced work upon inauguration, but the advent of the COVID-19 global pandemic inevitably slowed down the pace of activities and enforcement measures.

Speaking while receiving the report, Osinbajo said government would review the committee’s report and act accordingly, observing that the issue of AMCON debtors doing further business with government agencies is a due diligence matter and there would have to be compliance with the requirements of the law.

The mandate of the Committee, which was inaugurated in September 2019, included the review of status of debt owed to AMCON, collate information relating to respective debtors and their current status, deliberate on practical, legal and other strategies for the recovery of the outstanding debt, among others.

Members of the Inter-Agency Committee consist of representatives from various government agencies including the Independent Corrupt Practices and Other Related Offences Commission; Asset Management Corporation of Nigeria; Federal Ministry of Justice; Nigerian Financial Intelligence Agency; Nigerian Deposit Insurance Corporation; Central Bank of Nigeria; Department of State Services; and the Economic and Financial Crimes Commission.

Meanwhile, Sani who was addressing his colleagues and management and top officials of AMCON in Abuja, said the Senate would do whatever it takes to frustrate such obligors through the instrumentality of the law.

He promised that the legislature would work hand-in-hand with the judiciary by ensuring full compliance to the AMCON Act.

He said it was frustrating to the Senate as well as the federal government that some of the obligors that owed AMCON huge sums in debt still fly around in private jets and even approach both the federal government and other agencies of the government for business.

The Senator said this sort of impunity must stop in the interest of the country, adding that the Senate would continue to work with both the management of AMCON and the judiciary to ensure that it leaves a legacy that would enable agencies of the federal government to deliver on their mandates without hitches that negatively affect the already challenged economy.

He therefore appealed to the Judiciary to kindly comply fully with the provisions of the AMCON Act, which has been crafted to effectively deal with these recalcitrant obligors within a reasonable time.

The AMCON Boss, Ahmed Kuru, had tabled the challenges experienced by AMCON in taking advantage of the special powers granted to it under the Amended Act, at the forefront of which is the need to fast track its cases.

He emphasised that the provisions of the AMCON Act were sufficient to support its activities once their cases are put on the fast track as envisaged by the law.

While acknowledging the tremendous support the agency had been getting from the Judiciary and legislature, he said: “Distinguished Senators, to enable AMCON succeed in its national call to duty, the support which is required is now, more than ever, key to our success and the quick closure of our mandate in the National interest.”