Thursday , 25 July 2024

Financial Crisis hits Rainoil as AMCON take over the properties, freezes accounts

A Federal High Court in Lagos has ordered the freezing of bank accounts and shares belonging to downstream oil and gas company, Rainoil Limited, and 13 others over a N1.6bn debt.

The statement read, “The court also ordered the freezing of the Bank Accounts and shares of the company’s directors namely: David Ogwu, Anthony Ezeh, Clara Rotzler, Vincent Otiono, Vincent Sankey, Victoria Alo, Hon. Preye Ogriki, Treasure Afolanyan, Chief Nwagwu, Peter Ololo, Gordons Ejikeme, Joe Idudu, Falcon Securities Ltd and Rainoil Limited.”

AMCON spokesperson, Jude Nwauzor confirmed that all the property as listed by the court order had been taken over by AMCON with the assistance of court bailiffs among other officials of the law.

On why AMCON had to wait for over a month to carry out the order, Nwauzor said, “It takes a process to effect these orders. We are a government agency that is guided by law and order, and we must meet all the legal conditions before any enforcement is made. So, the length of delay is not the issue. The important thing is to carry out the order as guided by the law.”

Recall that AMCON, which is a debt recovery agency of the Federal Government, had in July 2020, enforced on properties belonging to the Chief Promoter of the company, Mr Emmanuel Ugboh, after offering him concessions and exploring all avenues to resolve the debt harmoniously to no avail.

However, due to the lack of adequate collateral, AMCON had to commence asset tracing on the Company’s Directors, an exercise, which revealed the seven properties the Corporation has now enforced upon. AMCON’s action is in line with Section 61 of the AMCON Act, 2010 and Section 49 (1) & (2) of the AMCON Act 2019 (as amended).

AMCON purchased the Non-Performing Loan of Deap Capital Management & Trust Plc. during the first phase of Eligible Bank Assets purchases from Zenith Bank and FCMB in 2011.

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