By Meletus EZE
The Nigerian Electricity Regulatory Commission (NERC) has suspended the board of directors and other key management staff of Ibadan Electricity Distribution Company (IBEDC).
NERC’s Head of Media Unit, Mrs Vivian Mbonu, on Wednesday said in statement the directors and management staff were suspended for non-recovery of inappropriate shareholders loan of N6 billion.
Mbonu said the suspension was via Order No. NERC/181/2018 of June.She said the loan was granted to Integrated Energy Distribution and Marketing Group (IEDMG) Limited by the utility.
According to her, IEDMG is the core investor in IEBDC, following the privatisation of electricity distribution companies by the Federal Government.
“The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF).It is for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.’’
She said the commission had earlier fined IBEDC N50 million on September 18, 2017 for non-compliance with Order No. NERC/173/2017.
According to her, the 2017 order directed the IBEDC to fully recover the outstanding N5.7 billon being the balance of the loan granted by the utility to IEDMG.
However, IBEDC Company’s secretary, SeyeAlayande, confirmed NERC suspension.He said the Board of the Ibadan Electricity Distribution Company, IBEDC, received with shock and disbelief the decision of the Nigerian Electricity Regulatory Commission (NERC) to suspend all executive and non-executive directors of IBEDC in its order.
Alayande said the suspension, which was premised on alleged non-compliance with the repayment terms of investors’ commitment to the company, is not only unwarranted but injudicious given the circumstances and realities of issues at stake.
According to IBEDC, as NERC rightly observed in its Order, IBEDC complied with the payments of the fine and interest on the pre-takeover expenses as imposed by the regulatory authority.
“NERC and IBEDC reached an understanding in respect of the ₦5.7billion outstanding due for payment by Integrated Energy Distribution & Marketing Group Limited (IEDMG).
“The two parties reached an understanding that the repayment of the 5.7billion plus interests would be made from the refund of the sum due from the federal government on the stalled Yola Electricity Distribution Company transaction.
“This position was to the knowledge of the Bureau of Public Enterprises, BPE.The understanding from BPE, which was conveyed to NERC was that the refund which had been due to IEDMG as far back as 2015, could only be made after the 2018 Appropriation Bill is signed into Law,” IBEDC clamined.
Alayande said to demonstrate commitment and good intention, IEDMG reached an understanding with NERC to pay ₦150million monthly to IBEDC beginning from January 2018, while awaiting the refund from BPE in respect of Yola transaction.
The company’s confirmed that It is true, as NERC claimed, that as at 20 April 2018, the payment for January,February and an additional ₦130million had been effected.
“More importantly, however, is the fact that as at Thursday, 14th June 2018, IEDMG had made all outstanding payment up till May 2018, in respect of the monthly N150million commitment.
“It is for this reason that the Board of IBEDC is at a loss over this seemingly hasty decision to suspend the directors who had not only demonstrated willingness and commitment to fulfilling its financial obligations to IBEDC, but have collectively shown dedication to the cause of the company.
“It is our hope that NERC will take a second look at the issue in contention andreverse this decision in the interest of all the stakeholders and the nation, ” Alayande added.
“More importantly, however, is the fact that as at Thursday, 14th June 2018, IEDMG had made all outstanding payment up till May 2018, in respect of themonthly N150millioncommitment. It is for this reason that the Board of IBEDC is at a loss over this seemingly hasty decision to suspend the directors who had not only demonstrated willingness and commitment to fulfilling its financial obligations to IBEDC, but have collectively shown dedication to the cause of the company.
“It is our hope that NERC will take a second look at the issue in contention andreverse this decision in the interest of all the stakeholders and the nation.
