Debtors & Recovery | |
Debtors & Recovery | |
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Friday, 31 May 2019 / 12:08AM / By News
& Investigations / Otto Abasiekong / Header Image Credit: AMCON
As the Asset Management Corporation of Nigeria, AMCON continues its
mandate of recovering about N5trn bad debts in the country, the cooperation of
the listed debtors and alignment with the procedures and processes to
facilitate a seamless resolution of cases becomes critical.
In driving a result-oriented debt-recovery framework, AMCON has engaged
the services of Asset Management Partners (AMPs) to, on their behalf,
carry out a massive exercise of engaging debtors to negotiate, deploy the
necessary tools guided by the debt recovery provisions.
With over 12,000 loans to be recovered, the attitude of some debtors
coupled with the use of legal proceedings to obstruct the seamless process of
debt recovery, are part of the challenges AMCON and the AMPs are facing in the
discharge of their duties.
On Friday May 17, 2019 Proshare published an article on “AMCON, AMP and Debt Recovery Turnaround- First Glance” where it identified and established the following issues around debt recovery;
One challenge identified in the article and which is a going concern is
the attitude of some of the debtors, who are not cooperating in the area of
clearing their debts.
As a follow up to the article and further engagements with some of the AMPs, we highlight some of the ongoing cases and the status;
AMCON vs Uhumwangho Nonweneho Princess FHC/B/CS/22/2018
Name of Debtor - Princess
Uhumwangho NONWENEHO
Amount: N12, 674, 200
Status of the Case -The obligor is owing the
sum of N12, 674, 200 (Twelve million six hundred and seventy four thousand
naira only). She refused to liquidate same despite several attempts by AMCON
and her solicitors. A recovery suit has since been filed against the obligor at
federal high court sitting in Benin, Edo State. The suit is still ongoing in
court.
AMCON vs AFO Product Nigeria Limited
Suit No FHC/L/CS/1131/2018
Name
of Debtor: Chief Afoke OKOKO , MD AFO Limited
Amount:
N46, 773, 772.94
Status
of the Case -The Managing Director is Chief
Afoke OKOKO, the amount owed is N46, 773, 772.94 (Forty six million seven
hundred and seventy three thousand seven hundred and seventy two naira ninety
four kobo) only. They have refused to liquidate their debt despite several
attempts by AMCON and her solicitors to recover the said amount. A recovery
suit has since been filed against the obligor at federal high court sitting in
Lagos State.
The
suit is still ongoing in court. The judge has requested that a copy of the
third party tripartite legal mortgage be submitted to court before the interim
order applied can be granted.
AMCON vs DELCOM SYSTEMS LIMITED NO. FHC/ASB/CS/9/17:
Name
of Debtor: Hon. John Chike
Osadebay, MD/CEO
Amount:N91,808,399.00.
Status
of the Case: They have refused to liquidate
their debt despite several attempts by AMCON and its solicitors to recover the
said amount. Recovery suit has since been filed against the obligor at Federal
High Court sitting in Asaba Delta State. The Managing Director of the obligor
company was confirmed ill and of no financial standing. The case was adjourned
to enable us trace the assets of the obligor (if any).
AMCON vs. AKABA RHODES LIMITED WITH SUIT NO. FHC/ASB/CS/44/2018
The
managing director is Dr. THOMAS EDOGBEJI AKPOMUDIARE SALUBI, the amount owed is
#62,913,745.24 (Sixty Two Million Nine Hundred and Thirteen Thousand Seven
Hundred and Forty Five Naira Twenty Four Kobo) Only. They refused to
liquidate their debt despite several attempt by AMCON and her Solicitors to
recover the said money. A recovery suit has been filed against the obligor at
Federal High Court sitting in Asaba, Delta State.
The following cases are not yet in court but ready for filing:
1.
AMCON V. GALAXY
ENGINEERING LIMITED: Amount owed is N31,477,653.00
(Thirty One Million Four Hundred and Seventy Seven Thousand Six Hundred and
Fifty Three Naira) Only.
2.
AMCON
V. Total flow engineering services: Amount
owed is N31,861,214.65 (Thirty One Million Four Hundred and Sixty One Thousand
Two Hundred and Fourteen Naira Sixty Five Kobo) Only .
3. AMCON V. DUal engineering services limited: Amount owed is N74,663,591.78 (Seventy Four Million Six Hundred Sixty Three Thousand Five Hundred and Ninety One Naira Seventy Eight Kobo) Only.
Conclusion
Part of the responsibility of AMCON is taking away bad loans out of the
financial system and economy.
The cooperation of the debtors, in the area of showing willingness to
clear their debts is important to a nation in dire need of liquidity.
Our Judicial system is doing a great work but must work closely with
AMCON to ensure that debtors who are showing nonchalant attitudes to pay or
comply with the provisions for debt recovery, are brought to book within the
ambits of the law.
In climes like the United States of America and Europe, debtors to the
financial system are sober and make efforts to comply with the process and
timelines on how they plan to clear their debts.
Nigeria’s progress hinges on strong institutions that ensure that rule
of law guides the conduct of the citizens and their relationship with the
state.
It is therefore expected that based on the above outlined cases, the
debtors will make the moral call of reaching out to AMPs and AMCON to resolve
all their debt issues.
This will build more confidence in the financial system and consolidate
the role of AMCON in achieving the debt recovery mandate.
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