The Senate has begun investigation into allegations made by stakeholders that the Asset Management Company of Nigeria (AMCON) failed to remit funds and assets of former Managing Director of the Defunct Oceanic Bank, Mrs Cecilia Ibru, to shareholders, as well as Ecobank, the company that took over Oceanic Bank.
The Senate Committee on Drugs, Narcotics, Financial Crimes and anti-corruption queried the procedures adopted in the sale of the properties worth N569 billion, forfeited to the Federal Government by former Managing Director of Oceanic Bank Plc, Mrs Cecilia Ibru.
At the committee’s investigative hearing on the subject, it observed that four years after entering into a plea bargain with the office of the Attorney General of the Federation, Mrs Cecilia Ibru is yet to remit N16.1 million to AMCON.
The hearing followed a petition to Committee, headed by Senator Victor Lar, said to have been filed by a Nigerian whose name was not disclosed.
The said petitioner alleged that the sale of the properties by the Assets Management Company of Nigeria (AMCON) were questionable.
The committee also faulted AMCON over its failure to follow due procedures in the sale of some recovered properties.
It was revealed that the corporation failed to advertise the property before embarking on sales as required by the rules governing sales of government property.
The seized assets worth N569 billion were taken over by the Federal Government, following a plea bargain entered into by Mrs Ibru. The committee said that the mode of disposal of the assets located within and outside Nigeria was shrouded in secrecy.
Senator Victor Lar said on Monday that Ibru had pleaded guilty, during the course of her prosecution and entered into a plea bargain with the government, while handing over assets allegedly bought with depositor’s funds.
Quoting from the petition, Lar stated that the petitioner alleged that Ibru still controls most of the assets and shares, said to have been taken over by AMCON, while she was also said to have converted the United Kingdom (UK) branch of Oceanic Bank to her personal use, without notifying shareholders.
The petition read in part: “It is interesting to note that the handling of the plea bargain was fraught with anomalies and the handing over of assets and shares of Cecilia Ibru to AMCON and transfer to shareholders in Ecobank never took place.
“Due to poor administration of the recovery and implementation of the plea bargain: Cecilia Ibru still controls most of the assets and shares recovered under the plea bargain. Mrs Ibru converted Oceanic Bank UK with assets and cash of over £15 million to her personal use.
“She changed the name of Oceanic Bank United Kingdom to Premier European capital, transferring all Oceanic Bank assets to the new company, without the knowledge of the previous shareholders and directors from Oceanic Bank.
“She opened a trust fund and converted properties recovered to Cecilia Ibru Trust Fund: United States (11); Nigeria (51); Dubai (4) ;South Africa (1); 29 portfolios in different companies; and two aircraft worth over $100 million, on the fleet of Aero Contractors.”
But, the Economic and Financial Crimes Commission (EFCC) informed that the anti-graft agency was not involved in the deal. The commission, which spoke through Mr Ibrahim Audu, stated that it was not involved in the plea bargain as the deal was struck between Ibru and the office of the Attorney-General of the Federation.
Audu said, “Just as the petitioner rightly highlighted in his petition, investigation in the case of Ibru was conclusively done. There was a plea bargain which was entered between the government and Ibru.
“There is a court order in respect of that plea bargain. By the court order AMCON was directed to manage all the properties that were confiscated. By that order, all the properties recovered from Ibru were transferred to AMCON for management. Nothing is with EFCC.
“All the properties recovered from Ibru have been handed over to AMCON, in accordance with the court order, for management.”
Executive Director of Ecobank Plc, the company that took over Oceanic Bamk, Mr Ibrahim Jafiya, also told the Senate Committee that AMCON had effectively taken over the assets at the time his company came into the scene. He said AMCON took over the bank two years before the management of ECOBANK took over the control of Oceanic Bank.
He said that his bank was not involved in the execution of the plea bargain.
Another testified before the Senate Committee the Acting Executive Commissioner in charge of operations at the Security and Exchange Commission (SEC), Mr Abatcha Bulama, also said that the Commission was no aware Ibru’s shares were sold at the Nigerian Stock Exchange (NSE), after the plea bargain.
Deputy Governor in charge of Financial Sector Systems Sustainability, at the Central Bank of Nigeria, Mr. Okwu Nnanna, told the panel that the apex bank finished its assignment after handing over the failed bank to AMCON.
He added that the bank does not supervise the dead banks, but concentrate our activities only on the living banks.
Acting Managing Director of AMCON, Mrs Foluke Dosunmu, confirmed that Ibru’s assets that were seized by the government were handed over to the company but are not to be managed by AMCON according to the contents of the plea bargain.
The Acting AMCON, boss also said AMCON had not taken up Mrs Ibru over the N16.1 billion, because it had not ascertained her unwillingness to pay it, saying once it is confirmed that she’s not ready to pay, the corporation would take her back to court.
