Alleged N135b case: AMCON embarrassed me, says Sen. Ifeanyi Ubah

A former Chairman of Capital Oil and Gas Industries Limited,
Senator Ifeanyi Ubah said he felt slighted and humiliated by the
Assets Management Corporation of Nigeria (AMCON) for charging him
and his oil firm with alleged indebtedness.

He said the charges of alleged N135billion indebtedness were
preferred against him and Capital Oil before a Federal High Court
in Lagos while a consent judgment between the parties was
subsisting.

He said AMCON rushed to court when mediation was in
progress.

He said a mediation meeting between Capital Oil and AMCON is
expected to hold again today.

Ubah, who made the clarifications at a briefing in Abuja, said
over 1, 436 workers of Capital Oil have become homeless due to the
action of AMCON.

He said: “I felt sad that I have been painted as a fraudulent
Nigeria by AMCON. No court of law has ever found me wanting. I am
not dubious. I have never taken N1 contract or seek for N1 waiver
to be who I am.

“AMCON filed charges against me and Cpaital Oil before a Federal
High Court in Lagos. It is in the same High Court that AMCON and
Capital Oil signed and sealed a consent judgment. I think there is
more to it.

“The media was flooded with news of a criminal charge against
Sen. lfeanyi Ubah and Cpaital Oil for alleged false claims on
actual values of transferred assets to AMCON and frustration of
implementation of consent judgment entered between AMCON and
CAPOIL.

“As stakeholders in the Oil and Gas industry, we have keenly
watched the unfolding melodrama and are constrained to make our
observations.”

Ubah admitted that it was true that his firm obtained laons from
six banks with sufficient collaterals.

He said: “lt would be recalled that in anticipation of the
deregulation policy of the Federal Government of Nigeria, CAPOIL
obtained bank loans and massively invested in the purchase of
ocean-going vessels and erecting of Oil and Gas
infrastructures.

“Unfortunately, following intense pressure from Nigerians, the
organized labour unions and civil society organizations through a
socio-political protest movement that began on Monday, 2nd January
2012 tagged “Occupy Nigeria”, the Federal Government backed out
from the deregulation policy.

“CAPOIL was worst hit by the volte-face as it was unable to
recoup its investment in furtherance of repaying the bank
loans.

“CAPOIL had made sufficient progress in discussions with the
banks on the restructuring of these loans and repayment, when
AMCON, an interventionist Institution of the Federal Government,
acquired all non-performing bank loans, inclusive of CAPOIL
loans.”

He said AMCON was allegedly trying to abuse court process.

He added: AMCON sued CAPOIL in Suit no. FHC/ABJ/CS/714/2012 and
in a well-planned ambush, obtained an ex-parte order from the
Federal High Court in Abuja to take over CAPOIL assets in Lagos.
The order was executed by an invasion of COG’S facilities in Lagos
in June 2012 and complete close down of its businesses.

“Eventually the same court rescinded the order in a considered
ruling, noting that the purpose for which AMCON was established was
to assist Nigerian companies to recovery and not to drive them to
insolvency.

“It must be noted that the suit between AMCON and CAPOlL upon
which the consent judgment was entered was purely civil without any
iota of criminality therein.

“After several meetings and negotiations, AMCON and CAPOIL
settled out of court and entered their agreement as consent
judgment.

“Summarily, the agreement between the parties was for AMCON to
inject funds into CAPOIL to trade its way back to profitability and
repay her loans, while CAPOIL assets, which included ocean-going
vessels, gantries, other Oil and Gas infrastructure, were
transferred to AMCON as continuing securities.

“In accordance with the consent judgment, Capital Oil and Gas
provided assets with a value of 78.55 Billion to AMCON as security
for restructuring its outstanding debts and re-fmancing its trading
business.

“AMCON contrary to the consent judgment, unilaterally appointed
valuers and carried out further valuation of the assets and
requested additional assets. CAPOIL after protest, obliged due to
pressure mounted on her and the management by AMOCN through
petition to IGP.

“The issue of valuation and CAPOIL compliance with its
obligation to provide assets with a forced sale value of N78.55
Billion Naira was resolved and laid to rest. This fact is confirmed
by the implementation Roadmap subsequently issued by AMCON.

“AMCON has clearly stated in series of publications that it has
concluded settlement with CAPOIL.

“Sadly, rather than provide trade finance to CAPOIL as provided
by the consent judgment, AMCON again in total disregard to the
provisions of the consent judgment, appointed one Mr. Ryan
Johansson, as the Managing Director of CAPOIL in flagrant
contravention of Nigeria’s company and immigration laws.

“The said Ryan, who had no experience in the Oil and Gas sector,
grossly mismanaged the company, leaving behind a damage of over
N150 billion. This is the subject of pending litigation by CAPOIL
against AMCON in Suit No. FHC/ABJ/CS/430/2015.”

“As a result of the unlawful Operations of AMCON, CAPOIL have
been shutdown for over a year now, its over a thousand employees
have been thrown into unemployment.”