The Managing Director of Asset Management Corporation of Nigeria, Ahmed Kuru, says if AMCON is unable to recover debts of over N5tn, the debt burden will be passed on to the Federal Government.
Kuru, who spoke at the Borno Hall of the Trancorp Hotel, Abuja at the first seminar for AMCON Receivers/Receiver Managers in General Enforcement, said the implication of that scenario meant that taxpayers would bear the brunt.
The AMCON boss, represented by Aliyu Kalgo, AMCON’s Group Head, Resolution Strategy, called on AMCON partners, especially in the receivership business not to allow debtors to get away with their debts.
He said, “We reiterate, our receivers are very key to the success of AMCON. In order to streamline the functions of our receivers and make them more effective and accountable, we have developed a new Receivership Framework, which will henceforth govern our relationship in terms of management of the assets and accountability.
“We have had cause to disengage some of our receiver managers due to non-performance. We did that because assets are being abandoned without cause or plan to come out of the debt. And at times receiver managers are confused about their responsibilities.
“Therefore, I urge the participants to partake actively in this interactive session and share some of their experiences with one another so that we can all succeed in our collective efforts to recover the over N5trillion from these recalcitrant debtor, which is a national assignment.”
Speaking in the same vein, Dr. Francis Chuka Agbu, Senior Partner, Lexavier Partners and Alheri Nyako, the Chief Executive Officer of Alheri Legal and Allied Services Consulting supported the position of AMCON.
Agbu described receivership as the most effective debt recovery tool within the current insolvency/debt recovery regime.
He explained, “Receivership, as a debt recovery strategy, is arguably the most effective debt recovery tool within our current insolvency/debt recovery regime.
“This is primarily because of the control, which it gives to the debenture holder/creditor over the assets, or the assets and business of the debtor company.
“By virtue of section 393(4) of CAMA, upon appointment of a receiver and manager, the powers/control of the directors over the debtor company become immediately suspended. Even where the receiver is not empowered to act as manager, he retains executive control over such portion of the company’s assets, which have been charged.”
