TheCable

The management of Ibadan DisCo says it has made all outstanding payment on the N6bn loan that instigated the suspension of its directors by the Nigerian Electricity Regulatory Commission (NERC).

In a statement on Wednesday, Seye Alayande, the company’s secretary, said the news of the suspension was received with shock and disbelief.

According to him, as of Thursday, June 14, 2018, Integrated Energy Distribution and Marketing Group (IEDMG) had made all outstanding payment up till May 2018, in respect of the monthly ₦150million commitment to the loan.

NERC had said it suspended the directors of the electricity distribution company over the company’s “inability to retrieve a N6bn inappropriate loan” given to IEDMG, its core investor.

Alayande described the decision as unwarranted and lacking in judgement since the directors “demonstrated willingness and commitment” to fulfilling the financial obligations to IBEDC.

“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: NERC/181/2018 dated 19th June 2018,” the statement read.

“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.

“We say so for the following reasons: firstly, 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.

“Secondly, 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.

“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.

“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 of Thursday, 14th June 2018, IEDMG had made all outstanding payment up till May 2018, in respect of the monthly ₦150 million 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 and reverse this decision in the interest of all the stakeholders and the nation.”