The Managing Director of the Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru, has charged all AMCON partners, especially in the receivership business, not to allow a few individuals to escape with the commonwealth of Nigerians. Mr. Kuru, who spoke at the first seminar for AMCON Receivers/Receiver Managers in General Enforcement held in Abuja, said the implications of such failure would be that the Nigerian public would be made to pay for the recklessness of only a few individuals who had continued to take advantage of the loopholes in “our laws” to escape their moral and legal obligations to repay their debts.
The AMCON chief executive, who was represented at the event by Mr Aliyu Kalgo, AMCON’s Group Head, Resolution Strategy, however, cautioned that whatever step AMCON receivers intended to take in the process must be in strict compliance with the law. Kuru, who underscored the key role of AMCON receivers in the debt recovery drive of the government agency, said in order to streamline the functions of receivers and make them more effective and accountable, AMCON had developed a new receivership framework, which would henceforth govern relationship in terms of management of the assets and accountability. “We have had course 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,” he added.
In his comments, Dr. Francis Chuka Agbu (SAN), the Senior Partner, Lexavier Partners, who was represented by Mr. Mohammad Umar, described receivership as the most effective debt recovery tool within the current insolvency/debt recovery regime and challenged AMCON to leverage it to the maximum to help Nigeria, especially now that the Federal Government needed a lot of money to tackle Nigeria’s dwindling financial resources in the face of the COVID-19 pandemic.
“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,” Agbu said.