By Alex Okoro

OrderPaperToday – The House of Representatives has resolved to probe alleged non-compliance with due process as well as under-valuation, purchase, and price racketeering of eligible bank assets by the Assets Management Corporation of Nigeria (AMCON).
To this end, the House has urged the corporation to suspend further transactions on the sale of these assets pending the outcome of the investigation by its committee on Banking and Currency Operations.
The motion on the matter was sponsored by Mr. Danburam Abubakar (APC, Kano) who noted that AMCON Act of 2010 is an act of the National Assembly which empowered the body to effectively resolve non-performing loans assets of all banks in Nigeria.
Abubakar informed the House that the corporation has put up for sale a total of 32 petroleum product storage tanks otherwise known as tanks farms in Apapa worth several billions of naira stems from failure of the oil companies to pay up their debts four years after the management of the corporation took over their non-performing loans from commercial banks.
The lawmaker expressed concerned that the process leading to the proposed sale of the tanks farms is alleged to be in contravention of section 28 of the Act which states that “the valuation of, and purchase price of eligible bank assets shall be determined in accordance with guidelines issued from time to time by the Central Bank (CBN).”
He continued by noting the proviso that in “prescribing parameters for the valuation of, and purchase price of, eligible bank assets, the CBN shall obtain and be guided by independent advice, publish and make widely available in the valuation basis and ensure consistent application of the valuation parameters.”
He noted further that the alleged under-valuation and sale of these assets could lead to loss of revenue to the federal government, promote inefficiency, waste, corruption and defeat the essence of the AMCON act.

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