Many would readily agree that one of the critical factors responsible for the continuous slide in our economy is the inability of the nation’s institutions to play by the rule. Nigeria today is like a jungle where those with the necessary war chest hold sway as lords. They are seemingly untouchable. These small clique of gladiators have often elevated themselves above the state. They break laws and trample upon national morality with impunity. They are deeply entrenched with their tentacles in all government policies meant to provide succour to the suffering poor. Notwithstanding the ruinous activities of these economic marauders, past governments and statutory anti-graft agencies had often turned a blind eye. Above all, the government, as if in cahoots was ever-willing to churn out new policies to bail out those whose penchant was to feather their nests to the pauperization of the populace. Take instance the taking over of the toxic assets of some banks in 2001 by the Federal Government. After the toxic assets were taken over, the government set up three Asset Management Corporation of Nigeria (AMCON) to oversee the assets so acquired. But the government omitted to appropriately sanction those who cornered the humongous loans that were later labelled “non-performing”. Instead of outright prosecution by the state, they were rewarded with more cash from the national till.
This is why the determination of this new administration to beam its search light of investigation on some of the sordid and ruinous transactions by government institutions cannot but be commended. I would say that the President Muhammadu Buhari’s administration couldn’t have come at a more auspicious time considering the low ebb of the nation’s resources owing to allegations of mismanagement and massive corruption by a few individuals at the detriment of the downtrodden. This is why Buhari’s pledge to revisit the missing $20billion and the ongoing investigation of crude oil for refined petroleum products – oil swap deals – between the Nigerian National Petroleum Corporation (NNPC) and some local and international firms is a welcome development.
Notwithstanding so much efforts being made to daily conceal and misinform Nigerians on the true picture of the country’s state of health, as regards the handling of its premier asset (oil), Nigerians are not willing to be taken for a joy ride anymore as their hope has been strengthened by the emergence of Buhari, who has consistently reiterated his commitment to the rule of law and the eradication of corruption in high places.
In moving forward therefore, all allegations of corrupt practices against government corporations from 2011 – 2015 must be investigated as presently being done concerning oil swap deals in order for Nigerians to have confidence in the new administration. Those without questionable/fraudulent transaction need not be afraid because the judiciary is there to ensure fair hearing. The Freedom of Information Bill signed into law by the previous administration must be utilised to its fullest this time around in order for Nigerians to experience the impact of democracy at its best.
It is on this note that I call on the Buhari’s administration to take a second look at the debt settlement deal between Zenon Oil and Gas and Forte Oil Plc, owned by Mr. Femi Otedola and Asset Management Corporation of Nigeria (AMCON). Needless to say that many Nigerians were stunned by the way and manner AMCON – the special financial institution founded to clean up the toxic assets of the banks in accordance with the provisions of the law – hurriedly announced the settling of ZENON Oil debt with the real terms of settlement still shrouded in secrecy till date.
It had been widely reported that Zenon Petroleum and Gas Limited and Forte Oil Plc had paid up an outstanding debt of over N140billion owed the Asset Management Corporation of Nigeria. But what is however disturbing is that the sudden final settlement of this huge debt was shrouded in secrecy and established under a supposedly “binding confidentiality agreement.” It is also pertinent to note that one of the cardinal provisions in the AMCON Act stipulates that all operations of AMCON be published in the media with copies made available to the National Assembly, Ministry of Finance and the Central Bank of Nigeria (CBN). It must therefore be noted that the ZENON OIL/AMCON deal failed to adhere to this laid down procedure.
AMCON’s Managing Director/Chief Executive Officer, Mr. Mustafa Chike-Obi, had said the ‘settlement’ was reached with Otedola after over six months of long drawn-out meetings and negotiations during which his assets had to be valued by an independent valuer (who is this independent valuer?) to ensure that they were commensurate with his debts. Chike-Obi had also revealed that Otedola proposed to forfeit assets and an undisclosed sum of cash as part of the final settlement, adding that the board of AMCON had accepted the proposal but the deal is awaiting execution. Chike-Obi also confirmed that the AMCON board approved the transfer of the businessman’s assets as well as undisclosed cash to AMCON as full payment and final settlement of the liabilities.
The AMCON MD had further rationalised the heist by saying that the Corporation acted within its mandate and the settlement with Otedola, whose non-performing loan is the largest in the financial sector, describing it as a historic deal for Nigeria and the economy. “It is a proposed settlement, but yet to be executed,” he had said. Was the settlement ever executed? Which of Otedola’s assets were used to offset the huge debt? These questions must be answered by AMCON, otherwise President Buhari’s administration must not only ensure that the deal is thoroughly investigated and where there are glaring breaches, make an example of those indicted within the ambit of the law, on how not to connive and conspire to defraud the Nigerians people. Chike-Obi’s claim that the deal was ratified by the AMCON board and Otedola had transferred some of his assets as well as an undisclosed sum of cash to AMCON as “full and final settlement” for his liabilities – for a debtor who ranked first in the list of debtors released by the CBN and as the biggest debtor to the Corporation from bank loans of N192.42billion, which was acquired by AMCON at an agreed price of N140.99billion – is indeed totally unacceptable.
It must however be stated clearly that AMCON has failed the first test of transparency and accountability as a public institution because all funds in its reserve belong to the public (depositors and shareholders). So, it behoves on AMCON to make public the assets which were forfeited by Otedola. Also, it is common knowledge that the House of Representatives set up a Committee to look into the matter. However,the report on the issue is yet to be made public to help unravel the circumstances surrounding the final settlement of the mysterious settlement of over N140billion debt owed by Zenon Petroleum and Gas Limited and Forte Oil Plc. AMCON must come clean in this debt settlement as a first step in demonstrating the new spirit of CHANGE which the new administration stands for. For the purpose of transparency and accountability, it is expected that AMCON publicises all take-over, the same way it publicised a court order it obtained to take over Delta Steel Company in Ovwian-Aladja from Global Infrastructural Holdings Limited (GIHL), for failing to meet its debt obligations and its inability to settle a N30billion syndicated loan, which it obtained from five banks. What is good for the goose is good for the gander as well, they say.
If these transactions are not probed, the government, and by extension Nigerians may never know what actually transpired and, not to know is to set the stage for a repeat performance should there exist rough edges in the deal as currently maintained and upheld by AMCON. A revisit would serve two purposes: One, it would show whether AMCON followed due process and laid down procedures in arriving at the settlement and two, whether AMCON deserves praise for a job well done, or opprobrium for a shameful conduct.
Finally, it is expedient for the All Progressives Congress administration led by our amiable President to visit all undisclosed settlements and deals between AMCON and sundry bank debtors, in order to set the records straight and to prevent future hazy debt settlements by private companies because it is the sweat of taxpayers and shareholders that is being used to settle these bad debts.
LEADERSHIP
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