Ibadan Electricity Distribution Company Limited (IBEDC), yesterday got a reprieve from the order given to it by the Nigerian Electricity Regulatory Commission (NERC) to dissolve its present Board of Directors within 21 days as a Federal High Court sitting in Abuja has ordered the parties to maintain a status quo.
Ruling on the matter brought before the court on suit no: FHC/ABJ/CS/665/18 between Ibadan Electricity Distribution Company Plc (IBEDC) & eight others Vs NERC, the presiding Judge, Justice Nnamdi Dimgba, ruled that the parties should maintain the status quo prior to the NERC order of June 19, in order to maintain the res of the matter.
Justice Dimgba further ruled that there shall be accelerated hearing to hear the merits of the matter.
With this ruling, NERC’s earlier order that IBEDC should dissolve its board within 21 days, is now temporarily on hold until the court comes to a final ruling on the matter.
The matter has now been adjourned to October 15, 2018 for the hearing of the last substantive suit.
It will be recalled that NERC had on June 19, directed IBEDC to put machinery in motion for the dissolution of its current Board within a 21-day period, citing alleged default in the recovery of what it described as an inappropriate shareholder loan of N6 billion granted to Integrated Energy Distribution and Marketing Group (IEDMG) Ltd by the utility company.
The IBEDC Board, however, responded to the allegation, contending that it has lived up to its financial commitment to IBEDC, adding that as at June 14, 2018, it had paid its monthly commitment up to date.
The Company Secretary of IBEDC, Mr. Seye Alayande, had said in a statement that the company and the regulatory agency had agreed that the repayment of over N5.7 billion and the interest would be made from the refund of the sum due from the federal government on the stalled Yola Electricity Distribution Company transaction.
According to Alayande, 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.To demonstrate commitment and good intention,IEDMG reached an understanding with NERC to pay 150 million monthly to IBEDC beginning from January 2018, while awaiting the refund from BPE in respect of Yola transaction.
It is true, as NERC claimed, that as at April 20, 2018, the payment for January February and an additional 130 million had been effected. More importantly, however, is the fact that as at June 14, 2018, IEDMG had made all outstanding payment up till May 2018, in respect of the monthly 150 million commitment,†Alayande explained.
