Debtors & Recovery | |
Debtors & Recovery | |
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Thursday, August 8, 2019 /
10:59AM / By The Cable / Header Image Credit: dailypost.ng
President Muhammadu Buhari has signed a new law which empowers the Asset
Management Corporation of Nigeria (AMCON) to put the bank accounts of its
debtors under supervision.
On July 31, Vice President Yemi Osinbajo set up a task force with a
mandate to devise a strategy to recover the N5 trillion owed to the corporation.
The agencies tasked to go after the debtors are the Economic and
Financial Crimes Commission (EFCC), Nigerian Financial Intelligence Unit
(NFIU), the Independent Corrupt Practices Commission (ICPC) and the ministry of
justice.
Muiz Banire, AMCON’s chairman, had said 20 individuals and companies owe
67 percent of the N5 trillion debt.
Ita Enang, aide of the president on national assembly matters, said the
signed law – AMCON (amendment) Act, 2019, empowers the corporation to access the
financial details of any of its debtors.
He said the law mandates AMCON to: “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 debtor, and to obtain
information in respect of any private account together with all bank financial
and commercial records of any debtor of any eligible financial institution,
banking secrecy, and the protection of customer confidentiality is not a ground
for the denial of the power of the corporation under this section.’’
“It makes it mandatory for AMCON to, despite the convention of
confidentiality of banking, business and contracting relations to furnish the
federal government, ministries, departments and agencies with a list of
recalcitrant debtors and then impose an obligation to seek clearance on the
federal government, ministries, departments and agencies when the federal
government, any ministry, department or agency proposes to contract with, or
pay, debtors on the list furnished by the corporation.’’
According to Enang, it also stipulates that: ‘’All money standing to
the credits of the corporation in any bank account is deemed to be in the
custody and control of the corporation. Where any proceeding is pending in any
court of competent jurisdiction by or any the corporation, the grant of any
interim, interlocutory or preservative order of attachment against the
corporation’s funds in any bank is prohibited. The corporation may require any
eligible financial institution from which it has acquired an eligible bank
asset or any director, manager or officer of such eligible financial
institution to furnish information and produce documents, books, accounts and
records in relation to any eligible bank asset acquired by the corporation from
such eligible financial institution or in relation to the borrower or other
obligator connected with such eligible bank asset.’’
He also said the law makes for a part-time chairman who ‘’shall be a
deputy governor in the Central Bank of Nigeria to be nominated by the Central
Bank of Nigeria’’.
Credit: The post Trouble
for Amcon Debtors as Buhari Signs new law first appeared in TheCable
on Aug 08, 2019.
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