N2.473trn debt: Reps to probe AMCON

THE House of Representatives, on Thursday, resolved to probe  the failure of obligos/bank debtors to liquidate their loans in order to enable Asset Management Company of Nigeria (AMCON) to redeem the three years zero coupon bond it raised.

The resolution followed the adoption of a motion on the need to investigate AMCON obligos over the non-liquidation of N2.473 billion, moved  by Honourable Johnbull Shekarau.

While moving the  motion, Honourable Shekarau said AMCON was established to respond to the 2007-2009 global crisis as an intervention agency to provide stabilisation capital to eligible financial institutions and acquire eligible bank assets.

He recalled that the company was provided with a three-year zero coupon Federal Government bonds to allow it raise N5. 67 trillion through the Federal Ministry of Finance and the Central Bank of Nigeria (CBN).

The lawmaker expressed worry that six years after, AMCON was yet to recover over N2.473 from Obligos/bank debtors to enable it to redeem the coupon bond it acquired.

Shekarau  further expressed concern that AMCON’s inability to recover this amount had serious implications on the economy, particularly now that “it is in recession.”

Supporting the motion, the chairman of the Committee on Media and Public Affairs, Honourable Abdulrazak Namdas, lamented  the company’s inability to recover monies from its debtors, stressing that the fund would help boost the country’s ailing economy.

Namdas noted that of the N2.473 billion, N1.2 trillion was owed by 20 individuals who, according to him, “are still walking freely and living lavish lifestyles.”

When the motion was put into voice vote by the Speaker, Honourable Yakubu Dogara, it was unanimously adopted by members.

Consequently, the House mandated its Committee on Banking and Currency to investigate the matter and report back its findings in four weeks, for further legislative action.