The House of Representatives, on resumption from the Christmas and New Year recess next Tuesday, is expected to commence debate on a bill which seeks to give additional powers to Assets Management Corporation of Nigeria (AMCON) to recover funds from defaulting obligor(s).
Reports showed that the Corporation has so far acquired non-performing loans (NPL) from eligible financial institutions to the tune of N5 trillion, out of which 80 per cent is owed by 350 individuals.
The bill which was sponsored by the Deputy Chief Whip, Hon. Nkeiruka Onyejeocha, has been gazetted for second reading, with the view to amending sections 6, 9, 19, 34, 35, 43, 45, 55, 60 and 61 of the AMCON Principal Act.
Clause 2 of the Bill seeks to amend Section 6(1) of the Principal Act by the replacing Section 6(l)(v) with the following: “The Corporation shall pursuant to an order of the Federal High Court obtained ex parte be entitled to do the following: (a) To place any bank account or any other account comparable to a bank account of a debtor of an eligible financial institution, under surveillance; Obtain access to any computer system component, electronic or mechanical device of any debtor with a view to establishing the location of funds belonging to the said debtor; Obtain information in respect of any private account together with all bank financial and commercial records of any debtor of any eligible financial institution; and Banking secrecy and the protection of customer confidentiality shall not be a ground for the denial of the power of the Corporation under this section.”
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The bill also seeks to include a new provision subsection (6) which provides that: “It shall be mandatory for all debtors to which this Act applies whether personal or corporate, who are engaged in business with the Federal Government of Nigeria or any of its Ministries, Departments or Agencies to obtain prior clearance from the Corporation as a condition precedent to the grant or approval of such contract or receipt of any payment due on such contract.”
The proponent of the bill also called for the inclusion of Section 9(3) with the view to empower the AMCON Board of Directors to “exercise the discretion in respect of all questions relating to whether an application or request brought pursuant to the provisions of the Freedom of Information Act is in the overriding public interest or otherwise.”
Similarly, three subsections namely: 19(3), 19(4) and 19(5) are to be included, which provide that: “No enforcement proceedings or execution in respect of a money judgment shall be commenced against the Corporation unless the prior consent of the Attorney-General of the Federation has been obtained.
“All monies held by the Corporation, pursuant to the exercise of its duties, powers and functions under this Act, shall be deemed to be in the custody and control of the Corporation, notwithstanding that such monies are held in a bank account.
“Where any proceeding is pending in any court of competent jurisdiction by or against the Corporation, the grant of any interim, interlocutory or preservative order of attachment against the Corporation’s funds in any bank is hereby prohibited.”
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