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
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.
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.