Senate faults AMCON’s disposal process of Cecilia Ibru’s properties

The Senate has described as absurd the process that led to the disposal of properties of the former managing director of the defunct Oceanic Bank Plc, Cecilia Ibru, by the Asset Management Corporation of Nigeria (AMCON). At the investigative hearing by the Senate Committee on Drugs, Narcotics, Financial Crimes and Anti- Corruption on Monday, its chairman, Victor Lar, queried why AMCON did not advertise the sale of the forfeited properties to allow for competitive bidding.

This, according to the committee, followed a petition to it that despite the forfeiture order, Cecilia Ibru still controls most of the assets and shares recovered under the plea bargain. The committee said the petitioner further alleged that Ibru converted Oceanic Bank in United Kingdom with assets and cash of over £15 million to her personal use as well as 11 properties in the United States, 51 in Nigeria, four in Dubai, one in South Africa, 29 portfolios in different companies and two aircraft worth over $100 million have all been converted to her personal use.

AMCON, the Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), Ecobank and Securities and Exchange Commission (SEC) were on hand to explain their role in the transaction. Foluke Dosunmu, acting MD, AMCON, revealed that the company paid N569 billion in three tranches to off- set the debt of the defunct Oceanic Bank. Although she admitted that advertisement was not made in respect of the sale of Ibru’s forfeited assets, she stressed that none of the assets was re-acquired by Ibru. Dosunmu also told the panel that the ex-MD still owes AMCON N16 billion and that the law will take its necessary course if she is unwilling to pay. She said, “AMCON acquired over 12,000 non- performing loans between 2009 and 2010.

The first set of funds that were paid to Oceanic Bank was N150 billion in the purchase of non-performing loans. The second set of funds paid was N336 billion, in respect of depositors’ funds that had been eroded by the illicit use of funds within that institution before we paid N83 billion for the assets that were forfeited. “Though we paid N83.39 billion, AMCON only received assets of N67.32 billion. There is a shortfall of N16.07 billion. Most of those shortfalls came from quoted and unquoted equities”.

According to Dosunmu, the Federal Republic of Nigeria official gazette dated October 20, 2011 contains the assets that were included in the plea bargain and forfeiture order. This, she explained, did not include cash, airplane or foreign assets, as being alleged by the petitioner. “AMCON paid Oceanic Bank the sum of N83 billion for the assets listed in Schedule Four of the settlement agreement.” It was necessary to purchase all non-performing loans before the regulatory cut-off date of 31st December, 2010 to avoid a run on financial institutions which could have led to the collapse of the industry”, she said.

Also speaking, Ibrahim Lamorde, EFCC chairman, absolved the commission of any involvement, saying the plea bargain was reached between the attorney general of the federation and Cecilia Ibru.