The Senate on Wednesday queried the management of the Assets Management Company of Nigeria over woeful performance shown in its balance sheet recently submitted to the Committee on Banking, Insurance and other Financial Institutions.
It lamented the loss of N146 billion the corporation recorded in its operation in the past 12 months.
This was revealed on Wednesday during the 2024 budget defence before the Senate Committee on Banking, Insurance and Other Financial Institutions under the chairmanship of Senator Adetokunbo Abiru at the Senate Complex, Abuja.
Also at the session were Senators Sani Musa (Chairman), Jimoh Ibrahim, Adamu Aliero and Ifeanyi Mbah.
Most senators on the committee raised concern over the financial statements of the assets recovery company, which indicated loss 13 years after its establishment.
Making an observation during the budget defence, Musa, the representative of Niger East Senatorial District, noted that most of the digits in AMCON’s balance sheets were completely losses.
The lawmaker further explained that the same debtors had acquired some of the companies that AMCON took over due to non-performing loans, lamenting that the purpose of establishing it had not been justified 13 years after its formation.
He said: “I can see from the balance sheet, the summary of profit and loss, most of the digits are at loss.
“Are we going to continue this way?
“If we are to do this after 13 years, then there is a reason to call for the amendment of the Act that established AMCON or the outright scrapping of the corporation.
“Our bad loans have been giving for free.
“And we have not seen any the action from the regulator.”
Also at the budget defence, Ibrahim observed that from the balance sheets submitted to the committee for scrutiny, it was obvious that the corporation was performing woefully.
Ibrahim, a first-term representative of Ondo South Senatorial District, observed that from the end of the year balance sheets, the company recorded a loss of N146 billion, which, according to him, called for concern.
Raising graver concern about the balance sheets of AMCON, he said: “I am astonished that your balance sheet is not looking good at all.
“It calls for serious concern.
“For instance, your total comprehensive profit and loss at the end of the year came to a loss of N146 billion.
“The net operating profit and loss is N126 billion.
“This further calls for concerns about AMCON’s financial status.
“This is a big loss.
“You are created to collect loans from debtors.
“Why are you not so impressive?
“Besides, the special powers of AMCON conflicts with the provisions of the Constitution of the Federal Republic of Nigeria, 1999, which is void and of no effect.
“You cannot operate in a draconian way with such special powers.”
Ibrahim, whose firm was once taken over by AMCON, further questioned the management of the corporation why he was buying cash-collateralised loans.
In his earlier presentation, the Managing Director of AMCON, Ahmed Kuru, said if the assets recovery company has not been created, more than 21 banks would have gone under and more than 3,000 jobs would have been at risk.
He said that out of the N1.8 trillion that was used to purchase the loan, AMCON has recovered 96 percent of that.
Kuru said: “If AMCON was not created, more than 21 banks would have gone under, more than 3,000 jobs would have been at risk, N2 trillion at that time would have been at risk.
“AMCON was not created to run any business, but a recovery agency.
“We don’t get into the business of individuals.
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“Out of the N1.8 trillion that was used to purchase the loan, AMCON has recovered 96 percent of that because of the interest elements.
“That is why the recovery rate is still poor.
“AMCON law does not allow anyone to buy assets.
“It is against the law.
“You can’t buy your assets, but they can pay your liabilities.”
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