AMCON seeks BOFIA 2020 accommodation
The Asset Management Corporation of Nigeria has approached the National Assembly to accommodate the corporation in the provisions of the newly amended BOFIA (2020), which sets up Special Tribunals for hearing financial matters emanating from the financial institutions.
According to a statement issued by AMCON on Wednesday, this was due to the fact that the corporation has continually been burdened with the slow pace of concluding its debt recovery actions in courts.
Making a presentation before the Senate Committee on Banking, Insurance and other Financial Institutions at the National Assembly, Managing Director/Chief Executive Officer of AMCON, Ahmed Kuru, said this proposed amendment and a few others would be critical to AMCON’s expected deliverables.
According to him, they will enable the corporation to resolve the debts as quickly as necessary.
The Senate Committee chaired by Senator Uba Sani (Kaduna State) had invited AMCON top executives and other key stakeholders of the Federal Government for a continued engagement regarding the amendment of the AMCON Act No.3 (Amendment Bill) 2021 with the Senate Committee on banking insurance & other financial institutions.
During the presentation, Kuru said, “The designation of a special tribunal for financial cases immediately assumes the achievement of quicker resolution of matters in Court as the Judges are designated to hear only such financial matters.
“Moreover, BOFIA prescribes a maximum period of six months to conclude matters brought before the tribunal. AMCON being accommodated under this tribunal will assist AMCON with its speed of recovery.
“To enable AMCON succeed in its national call to duty, AMCON solicits the continued support of this esteemed distinguished Senate Committee on Banking, Insurance & Other Financial Institutions with the proposed amendments for adoption.”
The AMCON boss disclosed that the areas, which AMCON was seeking intervention by the National Assembly included the Cessation of the Resolution Cost Fund/defined tenure; dissolution date of the Corporation, recovery through special tribunal for enforcement and recovery of eligible loans as well as certificate of Sale of Certificate of Transfer as a valid registrable instrument for AMCON.
Kuru noted that Section 61 (b) in ascribing a tenor for the operation of the Resolution Cost Fund described same as a period of 10 years from the calendar year 2010 but might be extended by not more than a maximum of five years by the National Assembly.
This, he said, was done under the assumption that the debt obligations would be extinguished within 10 years.
Kuru stated, “The effect of the above description therefore is that the tenor ascribed for the life of the Resolution Cost Fund has elapsed by time.
“Going by this, the tenor expired in December 2020. The need for the amendment of the provision of the Act therefore becomes inevitable towards ensuring a sus tained operation of the activities of AMCON.”
According to him, it is worrisome that if AMCON disposes all the assets securing the loans, it can only realise slightly above N1tn with the liability in excess of N5.4tn.