The main obstacle to the progress of the Assets Management and Recovery Corporation (AMRC) is the creation of an enabling environment by amending the AMRC Act 1992 as amended, to facilitate its operations and become a meaningful contributor in national development, Abdoulie Tamba, Managing Director of the corporation, has said.
Tamba made this disclosure last Thursday while presenting his corporations audited accounts and financial statement for the year 2010 before members of the Public Accounts/Public Enterprises Committees of the National Assembly.
According to him, the financial report for 2010 indicates a total revenue collection of D8.7 million compared to D5.4 million the previous year. The increase, he stated, is attributed to management’s resolve to maximize revenue.
“The corporation since inception in 1992 has collected more than D239 million or 71% of the entire GDCB portfolio. The balance of D96 million outstanding on these debts, at the report’s date (December 31st 2010) comprises mainly of unsecured debts with scanty documentation,” he added.
The AMRC boss further stated that the total current assets recorded for the year to December 31st, 2010 is a net of D39.1 million compared to D148 million in the previous year. He revealed that the AMRC has been operating a deficit/negative cash cycle due to indebtedness to AGIB and PHB banks.
“Equity and reserves stand at more than D46m compared to D47.6m in the previous year. This reduction is as a result of the deficit incurred in the year to December 31st, 2010,” Tamba said.
Noting that the year 2010 was indeed very challenging, Tamba also told members of the PAC/PEC committees that the AMRC recorded a deficit of more than D1.7m for the year to December 31st, 2010.
“The turnover for the year under review is D15.9m compared to D185.7m in the previous year due to the suspension of trading activities to enable management recover its outstanding debts,” he noted.
Despite raising some concerns, members of the Committee commended the AMRC management and adopted its report.
