AMCON blames valuers for inability to dispose huge assets

FOR its inability to dispose of multi-billion Naira worth of assets in its books, the Asset Management Corporation of Nigeria (AMCON) has blamed “inadequate valuation” by asset valuers earlier engaged by the corporation. It also blamed “strange market forces, among other vices.”

Consequently, the management of the corporation has proposed the creation of ‘AMCON Market,’ that would involve key players in assets valuation, insurance, legal profession and other experts.

Managing Director/Chief Executive Officer of AMCON, Ahmed Kuru, said in a statement sent to Nigerian Tribune on Friday that the corporation had a stockpile of assets it was finding difficult to dispose of in the regular open market.

Speaking during a one-day sensitisation forum for AMCON’s Valuers & Receiver Managers in Lagos, Mr Kuru said the asset cut across critical sectors of the economy, namely: real estate, energy, transportation and aviation, maritime, agriculture and manufacturing.

He was represented by AMCON Executive Director, Eberechukwu Uneze.

The forum with the theme: “Valuation of AMCON assets: The Imperatives of Competence, diligence and commitment,” is part of AMCON’s renewed strategy to continually engage different professionals whose practices directly impact on its recovery activities.

Mr Kuru said the creation of the proposed AMCON market would help address a lot of irregularities affecting the outcome of asset valuations in the country.

“We appeal to the conscience of valuers to the realities and the negative implication of wrong valuations to the recovery efforts of AMCON. As valuers, when you carry out this assignment, especially when it relates to AMCON assets, please make use of the appropriate methodologies,” Mr Kuru said.

“When you are appointed as valuers for AMCON, please don’t just look at it as a business. Kindly consider it as a national assignment, because we owe it a duty to Nigerians to recover these debts as quickly as possible, because AMCON is not here in perpetuity. Your contribution would help strengthen the hands of AMCON to realise its mandate.”

The AMCON boss said the call for professionalism became necessary following the feedback the corporation gets from concerned individuals and groups.

He said allegations of unprofessional behaviours by some valuers involved unnecessary overvaluation of assets, which makes it impossible for AMCON to dispose of such assets.

“The feedback we get is that some obligors go to the extent of trying to influence the decision of some valuers. Such sharp practice would not help our recovery mandate,” he said.

“The money AMCON is recovering belongs to Nigeria. That is why we are calling for the creation of an AMCON market, because the implication of the outcome of your valuations has very huge impact on our mandate.”

He said the assets with AMCON belonged mostly to companies and organisations whose loans were taken over.

He said when such assets are overvalued at the point of forfeiture by obligors of AMCON, it makes it difficult to either realise the loan settlement amount or dispose of the assets at competitive prices.

An over-valuation of assets, Mr Kuru pointed out, would result in overstated forfeiture value and subsequently a financial loss to AMCON.

In his contribution, a Senior Advocate of Nigeria, Mike Igbokwe, called on AMCON to always engage only tested Valuers with the required expertise to enable them do the right thing.

He however cautioned firms that are into the business of valuation to be professional in their approach as whatever valuation reports they carry out can also be tested by other firms, to ensure they followed proper methodologies from the beginning.