Senators on Wednesday expressed strong disaffection over the performance of the management of the Assets Management Company of Nigeria (AMCON).
The lawmakers were peeved that the Corporation recorded a loss of N146 billion within a period of 12 months.
The financial loss was revealed when the Managing Director of AMCON, Ahmed Kuru, and his management team appeared before the Senate Committee on Banking, Insurance and other Financial Institutions led by Senator Adetokunbo Abiru as Chairman.
Apart from its Chairman, members of the Committee include Senators Sani Musa, Jimoh Ibrahim, Adamu Aliero Ifeanyi Ubah, among others.
The lawmakers established that the AMCON has been run at a loss consistently in the last 13 years and submitted individually that the corporation has outlived its usefulness.
After examining AMCON balance sheet, Senator representing Niger East who incidentally is Chairman, Senate Committee on Finance, Sani Musa, noted that the corporation was being run at a loss. He wondered how the same debtors had acquired some of the companies that AMCON took over due to non-performing loans.
He said: “I can see from the balance sheet, the summary of profit and loss. Most of the digits are at loss. Are we going to continue this way? If we are to do this after 13 years, then there is reason to call for the amendment of the Act that established AMCON or the outright scrapping of the corporation. Our bad loans have been given for free. And we have not seen any action from the regulator.”
Senator Ibrahim spoke in a similar vein, maintained that from the end of the year balance sheets, the company recorded a loss of N146 billion, which according to him, called for concern.
He said: “I am astonished that your balance sheet is not looking good at all. It calls for serious concerns.
“For instance, your total comprehensive profit and loss at the end of the year came to a loss of N146 billion. The net operating profit and loss is N126 billion. This further calls for concerns about AMCON’s financial status.
What is responsible for all these big losses? You are created to collect bank loans from them.
“Even if you’re now regulators to the debtors, why are you incurring losses? Your balance sheet is not looking so good. Again, why are you buying cash-collateralised loans?”
