A Federal High Court Abuja Division has ordered that the Asset Management Corporation of Nigeria, (AMCON) to continue with the management of NICON Insurance and Nigeria Reinsurance, (Nigeria Re), two companies it took over following the alleged indebtedness of the private investor, Barr. Jimoh Ibrahim.
The Federal High Court Abuja Division presided over by Hon. Justice A. R. Mohammed had on Monday ordered that the AMCON, the NICON Insurance Limited, Nigeria Reinsurance (Nigeria Re) and Barrister Jimoh Ibrahim maintain the status-quo-ante until September 8, 2021, when the court will hear all pending applications in the matter.
According to AMCON, Barr. Ibrahim’s current indebtedness to it stands at nearly N70 billion.
Before the latest court case, the private investor and AMCON had been embroiled in legal tussles, claims and counter-claims since the loan was purchased by the latter in the early days during the first phase of Eligible Bank Assets (EBA) purchases from Union Bank.
It would be recalled that AMCON and Bureau of Public Enterprises (BPE), had on July 21, received approval from the National Insurance Commission (NAICOM) to constitute a new board and management of NICON Insurance Limited and Nigeria Reinsurance Corporation (Nigeria Re).
The approval for a change was to enhance the smooth running, efficient and effective management of the two firms previously owned by the businessman.
The reason for the recent changes in the board and management of the two insurance firms by AMCON with support by BPE was sequel to the takeover of the major investors’ interests in the NICON Insurance and Nigeria Re. .
AMCON also made it clear that the reconstitution of the board and management team of two insurance institutions in Nigeria was to ensure that the firms continue in their quest for transparent and accountable management of insurance in the country and continue to deliver value to its stakeholders.
After the re-constitution of the companies’ boards by AMCON, Barr. Ibrahim challenged the takeover in court to obtain an order seeking to stop AMCON from constituting the boards of the two insurance firms.
But when the case came up for hearing on Monday, the Judge ruled that all parties maintain the status quo until September 8, which was agreed by both the counsel to Jimoh Ibrahim and co, C.I. Okpoko, SAN and counsel to AMCON A.U. Mustapha, SAN.
The Court noted the parties agreement on its ruling on the application for adjournment and directed that all parties maintain the status quo as at date, pending the determination of the applications on September 8, when arguments will be heard on the motion on notice with a possible ruling.
The implication is that AMCON is still in charge of all assets of Barr. Ibrahim and his companies including NICON Insurance Limited and Nigeria Reinsurance Corporation over their heavy indebtedness to AMCON following earlier court rulings, which gave AMCON the power to take over the assets ab-initio. It was also from the courts that AMCON derived the power with which it appointed the Receiver Managers over some of the companies and assets belonging to the recalcitrant debtor.
AMCON as a law abiding institution vowed not be intimidated into surrendering its legal responsibilities.
