The Federal Government’s allegation of N135 billion fraud levelled against the Chief Executive Officer (CEO) of Capital Oil and Gas Limited took a new turn Friday, when it was discovered that the Assets Management Corporation of Nigeria (AMCON) allegedly owes Capital Oil N10 billion – being a fine imposed by the Federal High Court Abuja, Presided over by Justice Tsoho, for reneging on an initial agreement the Corporation and the oil company reached.
To this end, the legal team of Senator Ifeanyi Ubah is considering filling a contempt of court charges against AMCON, which despite a pending appeal it filed against the judgment of the lower court that fined it N10 billion, turned around to circumvent a contractual agreement to manage the access and liabilities of Capital Oil hence wearing the toga of a debt recovery agency.
According to one of the Senator’s counsels, who said: “About three years ago, AMCON had sent Senator Ifeanyi Ubah documents for the takeover of Capital Oil and Gas Limited and its management which our client signed and the Managing Director of AMCON was aware of and they took over the management of the company.
“We had two judgments of the courts and in one of them the court ruled that for AMCON to have gone against the initial agreement the body has to pay the sum of N10 billion as charges which it is yet to pay and they filed an appeal against the judgment and it is still pending in court and this action of AMCON is contemptuous of that judgment.
“We have a Supreme Court judgment in a matter between Ezeh and Diamond Bank and the apex court ruled that AMCON and EFCC are not debt recovering agencies but AMCON by going to court to place charges that our client committed fraud of 135 Billion is more of AMCON arrogating or usurping the powers of a debt recovering body which they are not.”
Continuing Izuchukwu recalled that the allegation of N135 billion fraud had no bases as according to him Sen. Ifeanyi Ubah had resolved his issues with Coscharis Limited and the matter had been put to rest before now.
“Following the Coscharis Saga, AMCON came into the matter and held a meeting at the Access Bank Solicitors Office to resolve the dispute and AMCON said that they are ready to take up all the facilities of Capital Oil and Gas Company and that of other banks.
“Present at the meeting was the then Executive Director Mr. Okey Nwosu and in conclusion, we resolved that N22 billion is owed Access and that N2 billion would be waved while out of the remaining N20 billion Coscharis takes N4billion while AMCON takes N16 billion on behalf of Capital Oil and Gas Ltd as requested by one Dr. Ekwueme.
“At conclusion, AMCON took on the total liabilities of Capital Oil and Gas as well as all the access of other banks and the collateral on the value was valued.
“AMCON later carried out an independent valuation of the property and if there is a short fall in valuation, Capital Oil will bring additional security.
“When AMCON said there was a short fall, Capital Oil and Gas provided additional security of an oil tank farm which AMCON accepted and part of the agreement was that should AMCON want to sell the property, Capital Oil would be the first option of prospective buyers.
“So the issue of going to court does not arise at this point. AMCON made its own valuation just like Capital Oil and they both resolved the matter,” he said.
Izuchukwu, however, noted that “what has been happening is that AMCON desires to bypass the agreement and resolved to use the Economic and Financial Crimes Commission (EFCC) there by criminalizing the matter because the body knows that they cannot execute their plot through the courts due to the agreement and the job of the EFCC is not to recover depts.
“We are still considering several legal options at the moment because AMCON has committed contempt.”
