Nigerian Asset Management Corporation, AMCON sues Home Minister, Aregbesola aid for N167m debt

The Asset Management Corporation of Nigeria (AMCON) has filed a debt recovery action against Ademola Adeyinka, the Senior Special Adviser to Home Minister Rauf Aregbesola.

According to a statement supported by an affidavit from AMCON supervisor David George and filed in a Federal High Court in Lagos by Ibadan-based lawyer Oluwole Olukole, Adeyinka is due N167,242,515.22, The Punch reports.

AMCON is a company established by the Asset Management Company of Nigeria Act 2010 (as amended) and duly empowered to acquire Qualifying Bank Assets from Qualifying Financial Institutions and to effectively resolve Qualifying Bank Assets.

Adeyinka was a banker at Intercontinental Bank Plc (acquired by Access Bank Plc) but is now a politician with residential addresses in Lagos, Osogbo and Abuja.

AMCON said the defendant, at all relevant times, was a customer of the former Intercontinental Bank Plc and operated accounts with the bank at their Plot branch 999C Danmole Street, Victoria Island in Lagos.

AMCON claimed that the defendant at some point in 2008 applied for and was granted a N50 million credit facility solely to purchase shares of blue chip listed companies acceptable to the bank.

He said the facility must be repaid within 270 days and repayment must come from operating cash flow, but not limited to the sale of shares.

The plaintiff claimed that he disbursed the funds under the facility and that the defendant used the facility by issuing checks to various parties involved in the transaction which were honored by the bank.

“Upon disbursement of the facility to the defendant, the defendant rather than honoring the express terms of the facilities failed and/or refused to repay the debt and continued to accrue interest,” he said.

AMCON further stated that at some point in 2011, certain Intercontinental Bank staff loyal to the bank’s senior management attempted and did delete certain computer files belonging to certain customers, including that of the respondent.

Efforts to completely wipe out the defendant’s files proved futile because the bank had backup files to reprint the documents it was trying to delete and recover them.

“The effect of this act of sabotage was to render certain of the defendant’s records and documents, including the offer letter, illegible and unclear,” AMCON said.

The plaintiff argued that when the defendant’s facility expired it was not repaid by him and escalated into a non-performing loan of N69,280,723.57.

He said the defendant’s continued refusal to liquidate its debt to the bank caused great hardship to the bank, which led AMCON to take over the non-performing facility from Intercontinental Bank Plc.

Pursuant to its powers under the AMCON Act 2010 (as amended), the Claimant stated that it purchased the outstanding debt of the Defendant arising from the facility granted to it by Intercontinental Bank Plc.

Accordingly, all rights including, but not limited to, the right to sue in respect of any Debt have been assigned to the Plaintiff by the Bank.

The plaintiff argued that the defendant had failed and/or refused to settle the outstanding debt to date despite repeated requests.

He added that indebtedness continued to grow at an interest rate of 15% per annum and would continue to grow until the complete liquidation of the outstanding debt.
Plaintiff has stated that he has incurred various substantial costs in his efforts to collect the debt from Defendant through the undertaking and/or payment of various professional services/fees, including but not limited to bringing this action. .

The plaintiff stated that the defendant has numerous accounts with other banks where he has money to his credit and also has millions of shares to his credit with the Central Securities Clearing System Plc.

The Claimant’s claims against the Respondent relate to the payment of the sum of N167,242,515.22, being the unpaid balance as of September 29, 2020 of the credit facility granted by Intercontinental Bank Plc to the Respondent (the debt of which was purchased by plaintiff) but which the defendant refused to pay despite repeated requests.

In the meantime, the court has adjourned until after the holidays for the minutes of service.

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