Connect with us

Business

MRS Counters Claims Of AMCON Boss, Kuru

Published

on

Ahmed


The Asset Management Corporation of  Nigeria, under Ahmed Kuru appears to be fast losing grip of its mandate, which is to help businesses recover rather than  destroy them. It just has announced it had initiated steps to wind down MRS Holdings Limited over its inability offset its N81bn debt. Another of its recent unfriendly moves towards businesses. A move that is certain to have negative impact on the wider economy.
MRS Holding Limited is owned by, Alhaji Sayyu Dantata, and AMCON said it had instituted proceedings at a Federal High Court in Lagos against the oil marketing concern.

In the suit with No.FHC/L/CP/923/2016, AMCON was asking the Federal High Court, Lagos Division, to allow it to force MRS into compulsory liquidation.

“MRS entered into an agreement with AMCON in February 2014 to restructure the debt, which then stood at over N74bn.  In the agreement executed by Alhaji Dantata and another executive director of the oil company, MRS agreed among other conditions that in the event of default, all concessions granted under the terms of settlement shall be revoked and the facility called in at the discretion of AMCON.

Alhaji Dantata and one of his directors also signed a default indemnity, which stated that if MRS Holdings Limited failed to pay any sum (of principal, interest or otherwise) due or to become due as agreed, MRS Holdings Limited shall pay additional interest at a default rate determined by AMCON on the unpaid sum from the date when such payment was due up to the default payment,” AMCON said.

But MRS has denied owing any N82b. In a statement, the company said it was strange that AMCON is re-litigating an already settled matter.

“It is clear to AMCON that MRS was paying down on the loan and agreed to restructure the loan on agreed terms of N74bn. The said debt has since been fully settled. The terms of settlement was entered as Judgment of Court on June 29, 2015 in suit No.FHC/L/CS/1365/2015. MRS is shocked that in spite of having fully settled the debt, AMCON has decided to re-litigate an already concluded matter. MRS Holdings Limited understands AMCON’s statutory function to recover debts but by no stretch can this mean harassment of companies. AMCON has declared a new aggressive debt recovery drive. MRS has no problem with that but this does not give AMCON a licence to embarrass and harass companies.”

Also Read:  Lawsuit: Tiwa Savage Unperturbed

The company said it had taken notice of AMCON frivolous recovery cases against many companies on similar issues to MRS. Not surprisingly all the cases were dismissed by the courts. It said it would be taking legal advice “to clear its good name and bring necessary actions to seek damages for the embarrassment and damage caused the Company’s reputation and goodwill by AMCON’s publication and action.”
And this is where the problem lies. The questions that naturally follows are: Does AMCON even keep records of its cases? If it does it would have known the status of the MRS Holdings; why is AMCON always in a hurry to either liquidate or take over companies? Is there is a political angle to the whole thing?
Perhaps, NICON Holdings, owned by businessman, Jimoh Ibrahim, would have been taken over by AMCON but for the intervention of the courts. Presently, AMCON is running Aero Contractors, one of the nation’s leading airlines. But there is no evidence that it has turned the company to a better concern than it met it.

Also Read:  Dangote Foundation spends N200m to rehabilitate Kano Specialist Hospital

Experts recently stated that there is nothing wrong in companies owning banks or other concerns. According to him, that is what makes businesses grow all over the world.

“Someone has to owe someone,” he stated. “There is no big deal even if MRS is owing. But why should
AMCON be in hurry to wind down a company as big as MRS? Now, we are complaining that there are no jobs and even those who have are losing them. Yet, all AMCON is interested in is sending further tens of thousands to the labour market by winding down a company that is not in distress. By putting out these unnecessary wind-down notice, AMCON unwittingly damages the brand reputation and value of these companies the eyes of the public and banks may be unwilling to do business with such companies thereby further compounding  their recovery process.” At the moment many states can’t pay workers salaries, 27 of the 36 states of the federation have even been declared technically bankrupt. So the economic crises facing the country is not just affecting private sector even more so with the public sector.

Beyond this is the effect actions of AMCON can have on government’s drive for foreign investment. No investor will want to come to an environment where his business will be taken over by a government agency under the most ludicrous excuse. All over the world, businesses undergo difficult moments and through deft management moves, these are dealt with and profitability is restored. However, with the way AMCON is going, it might end on be in charge of all businesses in the country in the near future.

Share
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Ibukun Awosika’s Other Love

Published

on

Ibukun

 

Love for children naturally come with women. This is a fact.

 

However, there are women whose affection for children is exceptional and unexplainable.

 

Respected Ibukun Awosika, the Chairman of First Bank Nigeria and Chief Executive Officer of The Chair Center Group is such a woman.

 

A success story in several business fronts, the woman has found a way of effectively finding time for her other love, children.

 

Renowned for her women conferences, her undying love for children has also drawn her into the board of some primary schools. 

 

Share
Also Read:  UBA Unveils 30 Students as 2019 Campus Ambassadors
Continue Reading

Business

FIRST BANK: TOWARDS REVIVING NIGERIA’S TEXTILE INDUSTRY

Published

on

 

 

By Chinyere Joel- Nwokeoma (NAN)

For many years, until the early 1980s, the Nigerian textile industry was the highest employer of labour, after the public sector. Sadly, the industry is in dire straits battling for survival in recent times.

Among the challenges that confronted the sector were policy inconsistency leading to closure of many textile companies occasioned by poor power supply, smuggling, poor access to finance and high operating cost, among others.

It is unarguable that the closure of many textile companies contributed to the rise in the country’s high unemployment rate, rising insecurity and other social vices.

It is against this backdrop that the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, recently lamented the country’s descent from being a textile giant to a mediocre player in the world economy.

Emefiele said Nigeria used to be home to Africa’s largest textile industry in the 1970s and early 1980s with the employment of over 450,000 people.

“The textile industry at that time was the largest employer of labour in Nigeria after the public sector, contributing over 25 per cent of the workforce in the manufacturing sector.

“The industry was supported by the production of cotton by 600,000 local farmers across 30 of Nigeria’s 36 states.

“This sector supported the clothing needs of the Nigerian populace, as our markets were filled with locally produced textiles from companies such as the United Textiles in Kaduna, Supertex Limited, Afprint, Texlon, Enpee and Aswani Mills, among others.

“In addition, the cotton growing sector has gone dead, thereby depriving thousands of smallholder farmers the chance to earn a living.

Furthermore, a large proportion of our clothing materials today are imported from China and countries in Europe,” Emeifele stated.

Also Read:  Ondo 2016: Ariyomo galvanizes APC youths’ momentum

It is against this background that First Bank of Nigeria Ltd, in line with its celebratory 125th anniversary , themed, “Woven into the Fabric of Society”, on Oct. 2 commemorated the country’s independence with a locally made textile attire.

Specifically, the bank set aside Oct. 2 to have all staff wear a locally made textile attire adorned in its 125 anniversary logo and over 18,000 staff across the bank and FBN Holdings participated.

The bank in a statement attributed the initiative to moves to celebrate the country’s 59th Independence anniversary and at the same time support the textile industry.

“The native attire fashion statement by FirstBank and the FBN Holdings Group is rooted in our trust in the diverse opportunities the textile industry provides.

“And indeed its contribution to national growth and development, vis-à-vis the job opportunities, youth and women empowerment, as well as the entrepreneurship driven influence its creates cannot be overemphasised.

“The bank is indeed honored to have been woven into the Fabric of Society in the last 125 years and is committed to keep promoting activities and opportunities that contribute to the growth of the textile industry.” it added.

Apart from the above intitative, FirstBank also provide access to market and provide opportunities for entrepreneurs in the Small Medium Scale Enterprise (SMEs) of the fashion industry with an initiative tagged Fashion Souk.

The bank partners with Eventful Nigeria Ltd with Fashion Souk, a platform that creates an opportunity for players in the fashion industry to exhibit and sell their wares to the thousands of event participants.

Textile Industry

FirstBank Chairman, Ibukun Awosika The Octopus News

The bank also in a bid to ensure sustainability of the industry recently introduced fashion design loan specifically designed to offer financial support to the participants in the textile industry.

Also Read:  Wizkid's Former Girlfriend Tania Omotayo Set To Wed

The bank’s fashion design loan with a single obligor limit of up to two million naira is targeted at tailors, dressmakers and traders in clothing accessories with no tangible collateral required.

Textile Industry

CEO, FirstBank, Adesola Adeduntan

To be eligible for the loan, applicants must have been in line of business for a minimum of three years.

Commenting on the development, Mr Moses Igbrude,  Publicity Secretary,  Independent Shareholders Association of Nigeria (ISAN), described the initiative as a wonderful concept.

“I hope those in the local textiles value chain will key into it and take advantage of this initiative.

“FirstBank should also ensure that the concept is properly communicated to the larger audience to ensure more patronage of locally made textile,” Igbrude said.

He noted that the Federal Government on its part should encourage institutions that are supporting our local industries by way tax incentives.

Also speaking, Mr Shehu Mikail, National President, Constance Shareholders Association of Nigeria, commended the bank’s support for local fabric and the textile industry.

Mikail said that the initiative would boost the morale of interested bodies who would like to venture into local fabric in promoting our culture to the world.

He said that the bank should focus on the fashion designers who would be ready to promote Nigerian mode of dressing to meet the world class in fashion design.

“This will help in promoting Made in Nigeria fabric and it will also encourage an interested investor to venture into textile industry business and this will tranform our economy,” Mikail stated. (NAN)

Share
Continue Reading

Business

UBA Honours Kola Jamodu after 12 Years of Service; Assures of Solid Governance Processes

Published

on

Kola Jamodu

 

Pan African financial institution, United Bank for Africa (UBA) Plc has assured investors and shareholders of her continuous adherence to solid corporate governance processes as the bank honoured its ex-director, Chief Kola Jamodu.

In a glitzy cocktail event and dinner in his honour at the Transcorp Hilton Hotel, Abuja, on Thursday, Jamodu was celebrated for his service on the bank’s board for 12 years as a non-Executive director. Accolades were poured on him, for his remarkable contributions to the group over the period that have helped solidify the bank’s footprints in its many countries of operations. 

Speaking at the event, UBA’s Group Chairman, Tony O. Elumelu, commended Jamodu’s efforts at contributing towards the strong corporate governance policies which UBA currently boasts of.

He said, “Chief Jamodu is a great Nigerian, a respected man and a great non-executive director to UBA. He has been wonderful and instrumental to today’s current standing of UBA across our 20 presence countries in Africa as well as in America, United Kingdom and in Paris. He was on the board of UBA for 12 years, and in line with corporate practices, which says at the end of 12 years, you retire from the board, he is retiring and we are here to celebrate his contribution to the bank.”

While reeling off some of Jamodu’s many achievements, Elumelu said, “He has been extremely supportive to UBA; he served as Chairman of Board Risk Committee, and he has all the experience – a chartered accountant, extremely astute, chairman of Nigerian Breweries, chairman of PZ, chairman of Nutricima; former minister of industry; a great tax expert, financial and management expert and UBA has been extremely lucky to have him on our board for 12 years. So to him and his family, we say thank you for all the support, for the teachings, for being generous with knowledge and for asking those hard questions that made us solidify our governance processes here at UBA.”

On his part, the Group Managing Director/Chief Executive Officer, Kennedy Uzoka, explained in fine details the impact that Jamodu’s experience has had on the bank, adding that he was able to help UBA navigate through some challenges that have now made the bank come out even stronger.

He said, “Chief Kola Jamodu is a very astute financial manager with diverse experience; he is someone that has helped us as managers to look into areas that we may not have looked into. During his time, he helped us to navigate critical issues, and now UBA America is a bank on its own as is UBA UK. He was always asking the right questions which others would have missed, and this is what helped us be where we are today. He started with us when we had just a few countries of operation and now today, UBA is operating in 23  countries. Kudos to Jamodu, he will be missed.”

Jamodu, who attended the event with his beautiful wife Funmilayo, thanked the bank for the opportunity given to him to contribute to the growth of the UBA Group, adding that as a board member one should be able to have an impact in the way things are being done, in governance principles and much more.

Speaking on his most memorable achievements on the board, he said, “I am very happy today that loan loss provisioning in UBA is one of the lowest because of the way we have handled those issues. My door is quite open and I will continue to offer what I can to ensure that this bank which I am still very much a part of continues to flourish.  My advice to the board, is that they should continue to ensure good succession planning which is very important.”

Share
Also Read:  Dangote Foundation spends N200m to rehabilitate Kano Specialist Hospital
Continue Reading

Facebook

Trending

Copyright © 2019, February13 Media