The Benin Electricity Distribution Company, BEDC has disclosed that the take over of the firm by Fidelity Bank Plc is a joke. The distribution company was responding to claim by the commercial bank and Bureau of Public Enterprise, BPE that the management of the firm has been changed due to its failure to service its loan.
The Federal Government had on Tuesday announced the restructuring and take-over of five DisCos for their inability to honour their debt obligations to the Nneka Onyeali-Ikpe-led bank.
The discos are Benin, Kano and Kano and two others.
A statement jointly signed by the Executive Chairman of the Nigerian Electricity Regulatory Commission, NERC, Sanusi Garba and the Director General of the BPE, Alex A. Okoh, said the bank has the right to intervene after the firms breached their contractual agreement.
“Fidelity Bank’s action is a contractual and commercial intervention and is between the Core Investors in the DisCos and the lender. BPE is involved because of the 40% shareholding of Government in the DisCos. Fidelity Bank has informed us that the new Board members of the affected DisCos will be as follows:
“Kano DISCO: Hasan Tukur (Chairman), Nelson Ahaneku (Member), Engr. Rabiu Suleiman (Member)
“Benin DISCO: KC Akuma (Chairman), Adeola Ijose (Member), Charles Onwera (Member)
“Kaduna DISCO: Abbas Jega (Chairman), Ameenu Abubakar (Member), Marlene Ngoyi (Member),” the government said.
Reacting on Thursday BEDC said the take over was illegal to the extent that the firm’s shares were not used as collateral security for Fidelity Bank loan.
In a statement issued by Ibeamaka Odoh, its Corporate Affairs Officer, the disco said it will resist any attempt by the bank to interfere with its operations.
Odoh said, “The management of BEDC states unequivocally, that there is no contractual, statutory or regulatory basis for such takeover.
“For the avoidance of doubt, the shares of BEDC have not been given as security to Fidelity Bank or to any other party.
“There was the report that certain parties had been appointed as board members, independent directors and managing director of BEDC.
“We understand these appointments have been communicated to the Bureau of Public Enterprises (BPE) and the Nigerian Electricity Regulatory Commission (NERC).
“As we understand it, Vigeo Holdings Ltd. (VHL), a non-shareholder of BEDC, obtained credit facilities from Stanbic IBTC Bank Ltd., Fidelity Bank Plc, and Keystone Bank Plc.
“We further understand that the said credit facilities and any enforcement action in relation thereto have in the meantime become subject of litigation.’
The firm urged its customers, investors and partners to ignore the takeover move.
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