The liabilities of the Asset Management Corporation of Nigeria have jumped to N6.6tn, the House of Representatives was told on Wednesday.
An ad hoc committee of the House heard that the liabilities rose after AMCON bought banks’ bad loans worth N3.3tn and paid N1.7tn for the loans.
The figure came to light when the committee met with the Director of Banking Operations, Central Bank of Nigeria, Tokunbo Martins, at the National Assembly on Wednesday.
The committee, which is chaired by Mr. Albert Adeogun, is investigating the reported sale of banks by AMCON in alleged fraudulent circumstances.
In addition, AMCON is indebted to the CBN to the tune of N4.5tn.
The central bank said it was monitoring the liabilities of AMCON to ensure that it remained manageable prior to its winding down in 2024.
Not satisfied with the submissions of Martins, Adeogun sought more details on the corporation’s liabilities.
“About two months ago when we met, you said the liabilities of AMCON stood at N4.5tn. Today, you say it is N6.6tn. What are the components of these liabilities? Who are your creditors?” he queried.
Martins admitted that though AMCON owed the CBN N4.5tn, its actual debt was N6.6tn, with accrued interest up to 2024 added.
The director explained further, “AMCON looks at its cash flow periodically; the banks generate N250bn annually to AMCON.
“They have assets that can pay off their liabilities, and by 2024 when AMCON is expected to be wound down, the liabilities would have been extinguished.”
She said the banks that were sold included Mainstreet Bank and Enterprise Bank.
Martins added that the process was transparent and that Skye Bank and Heritage Bank, which bought the banks, were not allowed to use money from depositors’ funds.
The lawmakers also asked why AMCON bought over Aero Contractors’ debts but did not extend the same gesture to Arik Air.
But the Managing Director of AMCON, Mr. Ahmed Kuru, said Aero Contractors showed weaknesses in corporate governance.
He said that from 15 aircraft in January 2015, the number had dropped to three by the second quarter of that year.
Kuru explained, “If we did not intervene, there would be no airline called Aero by 2016; AMCON owns 60 per cent equity in Aero in addition to a debt of N12bn.
“So, we also needed to save our money. Arik is a good airline and they have not shown any weakness in what they are doing.”
-punchng