By Olawunmi Ashafa
Lagos – Dr Eberechukwu Uneze, the Executive Director, Asset Management Corporation of Nigeria (AMCON) has called for the creation of AMCON Market
to enable the corporation to dispose some assets tied down in its book due to inappropriate valuation and market forces.
Uneze made the call in a statement signed by AMCON’s Head of Corporate Communications, Mr Jude Nwauzorand, on Friday in Lagos, issued after a one-day sensitisation forum for AMCON’s Valuers and Receiver Managers.
The conference had “Valuation of AMCON Assets: The Imperatives of Competence, diligence and commitment” as its theme.
He said AMCON Market would involve key players in valuation, insurance, legal, among other strategic stakeholders.
He added that “AMCON has a stockpile of assets, which it is finding difficult to dispose in the regular open market.
“The assets cut across critical sectors of the economy such as real estate, energy, transportation and aviation, maritime, agriculture and manufacturing,”
According to him, the conference is part of AMCON’s renewed strategy to continually engage different professionals whose practice directly impact on its recovery activities.
The Managing Director of AMCON, Mr Ahmed Kuru, represented by Dr Uneze at the conference, said the creation of the proposed AMCON Market would help to address irregularities that affected the outcome of valuation in the country.
Kuru said “we are using this opportunity to appeal to the conscience of valuers to the realities and the negative implications of wrong valuation to the recovery effort of AMCON.
“When you carry out this assignment as valuers especially when it relates to AMCON assets, please make use of the appropriate methodology.
“When you are appointed as valuers for AMCON, please don’t just look at it as a business; kindly consider it as a national assignment.
“This is because we owe it a duty to Nigerians to recover these debts as quickly as possible because AMCON is not here in perpetuity.
“Your contributions will help strengthen the hands of AMCON to enable the corporation realise its mandate.”
The AMCON boss said the call became necessary because of the feedback the corporation got
from key stakeholders.
He said there were allegations of unprofessional behaviour by some valuers who unnecessarily overvalue some assets, which in turn made it impossible for AMCON to dispose such assets.
Kuru said “the feedback we get from some of our key stakeholders are not palatable. Some of them have come to us with the allegation that some obligors go to the extent of trying to influence the decision of some valuers.
“That is very wrong. Such sharp practice would not help our recovery mandate. It is also not good because the money AMCON is recovering belongs to Nigeria.
“That is why we are calling for the creation of AMCON Market because the implication of the outcome of your valuation has very huge impact on our mandate.”
He informed participants that the assets that were with AMCON belong mostly to companies and organisations whose loans were taken over by AMCON.
According to him, when the assets are overvalued at the point of forfeiture by obligors of AMCON, it becomes difficult for the corporation to realise the loan settlement amount.
Kuru also said it might not also be able to dispose the assets at competitive price, which underscored the need for a market realisable valuation by valuers at all times.
Mr Mike Igbokwe SAN, called on the leadership of AMCON to engage only tested valuers with the required expertise to be able to do the right job.
Igbokwe said that would help the corporation in its recovery efforts.
He cautioned firms that were into the business of valuation to be professional in their approach, saying whatever valuation reports they carry out could also be tested by other firms.
Igbokwe said that submission of unprofessional report that did not follow proper methodologies could rubbish the image of such a valuation firm. (NAN)