N3.6bn debt: AMCON takes over firm linked to former Benue governor

The federal high court in Abuja has given the Asset Management Corporation of Nigeria (AMCON) the go-ahead to take over Bao Yao Futurlex Iron & Steel Company Limited and Bao Yao Huan Jian Iron & Steel over a N3.6 billion debt. 

In a statement released on Sunday, AMCON said Binta Nyako, the presiding judge, also ordered that the accounts of the companies be frozen.

According to the corporation, the companies are promoted by Shen Yaozhang and Idris Garba, who is a former military governor of Benue state.

The court also empowered AMCON to take over “the piece of land consisting of buildings/factory situated at Esuk Utan Village, Calabar, described as Plot A23 – A30, Calabar Export Processing Zone; chattels consisting of five oil tank barges and seven tug boats among others, as well the piece of land consisting of an acre situated at Kaduna in the Kaduna Local Government Area, more particularly described as Plot No. 13, Idoma Close”.

Following the order, AMCON, through Robert Ohuoba, the receiver, has taken over the assets.

“The order, therefore, mandates AMCON to take over all the assets of Bao Yao Huan Jian Iron & Steel Company Limited promoted by Mr Shen Yaozhang and General Idris Garba (retired) over a staggering indebtedness of over N3.6billion,” the statement read.

“The order also froze all accounts of the companies in any financial institution belonging to the defendants, which include Bao Yao Futurlex Iron & Steel Company Limited; Bao Yao Huan Jian Iron & Steel Company Limited, Mr Shen Yaozhang, Mr Ji Yunfeng & Gen. Idris Garba (Rtd.).

“It would be recalled that VP Osinbajo, Board Chair of AMCON, Muiz Banire and MD/CEO, Ahmed Lawan Kuru have repeatedly reiterated the fact that AMCON would collaborate with relevant Govt agencies to intensify its chase on recalcitrant obligors over a debt profile of >N5trillion.”

Vice President Yemi Osinbajo had set up a task force with a mandate to devise a strategy to recover the N5 trillion owed to AMCON.

Here are AMCON’s top 20 debtors.