Enugu: AMCON Denies Sealing School, Says Property Acquired ‘By Court Order’ Over N7.6bn Loan Default

The Asset Management Corporation of Nigeria (AMCON), weekend, denied sealing Providence High School, Independence Layout, Enugu. It however said the agency enforced a court order to acquire the property over an unpaid loan.

The head of corporate communications of the agency, Mr Jude Nwuzor, stated this in an interview with newsmen. He said, “AMCON was simply enforcing a court order. It is the asset where the school is located that is in question. You have to show sign that such order was obtained from court. We normally use a red marker to indicate that such place has been taken over by AMCON.”

Nwuzor said the building and its land were used as collateral in a loan worth N7.6bn. According to him, “The story of the school being sealed was unfortunate because AMCON never shut down schools. This is not our first experience with schools. We never shut the doors. What we do is that court bailiffs will put signs of AMCON possessing such property. Then we leave the school to run. We understand the implications and realities of what education represents for Nigeria.”

He advised borrowers to have the heart of repayment for sustainable development in the country. He also advised aggrieved persons on loan matters to go to court to obtain judgement, adding that the agency was currently prosecuting over 3000 loan-recovery cases.

A source told THE WHISTLER that the owner of the building, now late, obtained loan facilities using the property as collateral, and gave it to the school management. The source claimed the school runs on charity.

It was earlier reported that the agency had gone to the school with about forty policemen and allegedly locked in 344 female students and staff members of the school while it sealed up the facilities.

The agency had in a release said, “The management of the school is using sensational journalism to raise false alarm. The gate of the school is still open, and activities are ongoing. It is a boarding school with students from across the country. How can anyone eject them? It’s all lies to delay the repayment of a huge debt of over N7.6bn.

“As far as AMCON and records are concerned, the property belongs to Ferdinand Property Investment Limited. The company several years back took loan from UBA Plc and gave Corporate Guarantee in respect of the $2.9m AFDB loan granted to Ferdinand Oil Mills Limited in 1989. All the loans remained unliquidated resulting in AMCON acquiring the loan. The order and the originating processes were served on the school on July 16, 2016, but the school pleaded to be given time to enable them to arrange how to settle AMCON.”