The management of some electricity distribution companies (Discos) have rejected the takeover of the firms by Fidelity bank.
This is in spite confirmation of the takeover by the federal government, which has also backed the move.
The federal government had on Tuesday, through the Bureau of Public Enterprises (BPE) confirmed that it was in receipt of correspondence from Fidelity Bank to takeover the boards of three Discos.
However, the receiver/manager’s nominee of Integrated Energy Distribution and Marketing Company has said it was the legal and beneficial owner of 60 per cent (controlling and managing) shareholding interests in the Ibadan Electricity Distribution Company.
Similarly, the management of Benin Electricity Distribution Company Plc said there was no legal basis for the takeover of the company following the purported activation of the call on its collateralised shares by Fidelity Bank.
Ibadan Disco, though its receiver/manager’s nominee, urged the public to ignore the two Federal Government agencies – NERC and BPE, on the purported takeover control and management of IBEDC.
It said the purported takeover was announced “in spite of a subsisting order of a court in Suit No. FHC/L/AMC/92/2021, granted on September 8, 2021 and varied on December 3, 2021.”
In a statement by its counsel, Kunle Ogunba, SAN, IBEDC said it was unlawfully included in the announcement, adding that the government’s publication was “ill-conceived”.
“The appointment of a receiver/manager; Assets Management Corporation of Nigeria and its Nominee, ‘Kunle Ogunba, SAN have been duly registered at the archives of the Corporate Affairs Commission, Abuja.
“The esteemed members of the public are hereby enjoined to ignore the publication as the BPE and NERC both in their individual and collective capacities have no power(s) under any subsisting enactment to take the steps ‘they’ have taken as indeed there is no legislation tagged ‘business continuity framework’ anywhere codified in the Nigerian laws,” the statement read in part.
The management of Benin Electricity Distribution Company Plc also said in a statement that there was no legal basis for the takeover of BEDC, following the purported activation of the call on its collateralised shares by Fidelity Bank and assured customers and stakeholders of continuing operations.
The firm emphasised that, “There is no contractual, statutory or regulatory basis for such. For the avoidance of doubt, the shares of BEDC have not been given as security to Fidelity Bank or to any other party.
“)! The management of BEDC Plc warned that “any attempt by Fidelity Bank and/or BPE to intervene in BEDC in the manner being reported will be illegal, unlawful and will be resisted.”
Meanwhile, Minister of Power Abubakar Aliyu said on Wednesday that he had been briefed by NERC and BPE on the recent events relating to corporate governance in Kano, Benin, Kaduna, Ibadan and Port Harcourt electricity distribution companies necessitating a change in the respective board of directors and management.
In a statement by his media aide, Isa Sanusi, the minister said the changes announced were as a result of the receivership of the core investors in Kano, Benin, Kaduna and Ibadan Discos, whereas the actions in Port Harcourt were sought to provide much-needed liquidity and prevent the insolvency and risk of collapse of the utility,” the minister stated.
“In implementing the changes, the ministry shall ensure that the changes in corporate governance do not impact on the service and stability of the Discos.
“We wish to reaffirm that while the government continue to hold a 40 per cent equity stake in all the Discos, the utilities are still private sector-led ‘going concerns’ falling under the provisions of the Companies and Allied Matters Act and subject to regulation by NERC,” the statement read in part.
Aliyu said the power ministry had received a confirmation from the BPE and the Central Bank of Nigeria (CBN) that in exercising the rights of lenders to the core investors, the financial institutions did not retain the ownership of the shares and management of the Discos in perpetuity.
