Reps probe AMCON over under-valuation of tank farms

House of Representatives yesterday ordered an investigation into the alleged undervaluing of 32 government-owned tank farms put out for sale by the Assets Management Corporation of Nigeria (AMCON).
The resolution was sequel to the adoption of a motion sponsored by Hon. Danburam Abubakar Nuhu, as the House mandated its committees on Banking and Currency as well as that of Finance to investigate the matter and report back within one month.
The House also urged AMCON to suspend all further transactions on the sale of the assets, pending the outcome of the investigation.

Nuhu, in the motion, informed the House that AMCON had invited interested members of the public to submit bids for the purchase of 32 petroleum products storage tanks located in Ibafon, Apapa, Lagos state, as a result of the failure of some oil companies to pay their debts, four years after the AMCON took over their non-performing loans from some commercial banks.
According to the lawmaker, the processes leading to the proposed sale of the 32 tank farms worth several billions of Naira by AMCON has been alleged to be in contravention of Section 28 of the Corporation’s establishment Act of 2010.
“The valuation of, and purchase price of eligible bank assets shall be determined in accordance with guidelines issued from time-to-time by the Central Bank of Nigeria,” he quoted the section as stating, noting, however, that the provision was not adhered to.
He urged the House to mandate the investigation with a view to ascertaining whether due process was followed.