The Asset Management Corporation of Nigeria has called on the National Assembly to urgently amend the AMCON Act to enhance its powers to sell off assets.
AMCON spokesman, Mr. Jude Nwazor, told our correspondent that the corporation was more concerned about strengthening its laws so that it would no longer be hamstrung by the long processes of the Nigerian court system.
“Our Managing Director, Ahmed Kuru, has mentioned from day one that there is the need to amend the act establishing AMCON so that it will realise the mandates and obligations for which it was established,” Nwazor said.
There is the need to amend the act establishing AMCON so that it will realise its mandates
He explained that although no law was perfect, the National Assembly was already looking into the matter.
On the issue of the taking over of the Suru Group, owners of multi-billion naira hospitality hotel, Best Western hotel, he said, “We do not go outside the law that established AMCON. Before we go to court with any AMCON debtor, we explore all available means to settle the case.
“It is only when we are finding the issue of settlement difficult from the side of the debtor that we refer the matter to our legal department, as we are not authorised to take the matter in our hands. Our legal department takes the case to court and the court automatically gives us an order on what to do next. It is not as if Amcon just unilaterally intervenes in a company, when we do not have the authority or instruction to do so,”
he said.
Best Western Hotel was sealed off by AMCON about eight months ago. The Group Managing Director of Suru Group Limited, Mr. Edward Akinlade, said that the exercise resulted in a huge loss of assets and cash amounting to N8 billion.
AMCON reportedly took over the hotel located on Allen Avenue, Ikeja, Lagos, over a N24 billion debt. According to report, the debt was a N10billion loan obtained from the defunct Oceanic Bank, which was eventually taken over by
Ecobank.
As of the time of the takeover by AMCON, interest on the loan had accumulated, making it N24billion. While the Federal High Court had on March 22 ruled against the takeover of the hotel, Akinlade said that during the period the
hotel was under lock and key by AMCON, rats infested the premises and ate N1.5bn worth of
furniture.
He said that the hotel, which made an average of N900 million annually, also lost billions of naira in revenue.
Akinlade lamented, “If I reopen the hotel, I cannot call it Best Western again because the franchise owner has withdrawn from the franchise. The patronage will not also be the same. I don’t know if I can recover my
N6.3billion.”
