The Asset Management Corporation of Nigeria has engaged 70 professional valuers to determine the appropriate value of assets and properties of debtors transferred to it (AMCON) through loan-purchase agreements with the Deposit Money Banks. AMCON has so far invested N3.14tn ($19.6bn) in the purchase of non-performing loans and the recapitalisation of banks. With the bad debts taken over by the corporation, it now has assets spread across the country, The assets are real estate properties and shares that were used as collateral for loans. A statement by the corporation quoted the Managing Director, AMCON, Mr. Mustafa Chike-Obi, as saying during the inaugural visit of the House of Representatives Committee on Banking and Currency to AMCONs office in Lagos, that the engagement of professional valuers to evaluate all the properties was part of AMCONs commitment to ensuring that its assets were managed and disposed of in a transparent process.Chike-Obi explained that AMCONs assets were primarily locked in the bad loans that it purchased and such assets would be realised upon enforcement of the loan agreements.He, however, pointed out that AMCON usually engaged and advised every debtor to explore possible ways of resolving the bad debt through loan restructuring and payment rescheduling, noting that the corporation only foreclosed assets of borrowers who were not willing to pay.He said the corporation now had some 9,000 loans under its purview and had developed institutional capacity to manage them in the best interest of the general public, whose funds formed the basis of establishment of the corporation. While outlining the administrative structures and operations of the corporation to the lawmakers, Chike-Obi said that AMCON would always respond positively to any enquiry from the legislators and the public."We understand the need for legislative oversight and we will always respond positively. You dont have to wait for formal occasions before asking questions, AMCON can be reached anytime so that we can provide answers to your concerns and help us pass these to your various constituencies," Chike-Obi said.The Chairman, House Committee on Banking and Currency, Mr. Jones Onyereri, said the legislators had decided to increase the momentum of their oversight functions in order to strengthen national institutions.He pointed out that the visit to AMCON was to gain better understanding of the structures and operations of the corporation and to assess these in line with the Act that established it.He said the committee was worried about the plight of shareholders of the nationalised banks and other recapitalised banks, adding that financial services regulators should look at the issue again and make provisions for the shareholders. He said, "Several of the affected shareholders are minority shareholders who invested their little savings based on the advice they were given and assurances by the regulators.Onyereri, however, commended the management of AMCON and assured that the lawmakers would support the corporation in the realisation of its mandate.
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