Court approves AMCON’s sale of Abuja properties inked to BDC operator

The Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, has issued a directive requiring the Asset Management Corporation of Nigeria (AMCON) to auction properties associated with Farida Bureau de Change Limited, owing to its failure to repay a loan totaling N194.018 million to the defunct Platinum Habib Bank Plc. Justice Tsoho, in a judgement obtained by Nairametrics, emphasized the detrimental impact of loan defaulters on financial institutions over time.AMCON’s legal representatives, Ehi Barnabas and Ekwere Nsikanabasi Esq, approached the Abuja court under suit no: FHC/ABJ/CS/ 889/16 seeking the sale of properties linked to the BDC operator due to their inability to settle outstanding loans granted to them. They contended that the defendant and two others owed N194,017,765.89 to the claimant, arising from overdraft facilities provided by Platinum Habib Bank Plc in 2008.The defense team, led by John Adam Okloho Esq, refuted the allegation of indebtedness to the bank or AMCON, asserting that their clients had not received any funds as stipulated in the loan agreement. Okloho further argued that no loan agreement existed between the defendants and the bank as asserted by the claimant, emphasizing the absence of title documents pledged as collateral.In his judgement dated March 28, 2024, Justice Tsoho emphasized the importance of straightforward responses to claims presented by AMCON, indicating that failure to either admit or deny specific claims would be construed as an admission. He highlighted various pieces of evidence supporting AMCON’s claims of default on the loan agreement.Justice Tsoho ultimately granted AMCON’s requests, stressing the need for accountability and adherence to loan agreements to avert financial institution failures. The ruling affirmed the granting of Reliefs 1, 2, 3, and 5 as sought by the claimant in their claim dated November 4, 2016.Key points to note:AMCON serves as the federal government’s debt recovery agency.AMCON is tasked with initiating legal proceedings to recover debts assigned to it by financial institutions.Matters related to finance fall under the jurisdiction of the Federal High Court.