The Ibadan Electricity Distribution Company (IBEDC) has announced the takeover of the power firm by the Asset Management Corporation of Nigeria (AMCON) with the appointment of Mr Kunle Ogunba SAN, to act as the Receiver/Manager Nominee in the receivership action.
The action follows the judgement by a Federal High Court on September 8, 2021, which granted orders in favour of AMCON as Receiver/Manager of Integrated Energy Distribution and Marketing (IEDM) Limited, IBEDC’s core investor, over default in Loan Service Agreement.
This disclosure is contained in a corporate communication to all staff of IBEDC issued and signed by its Chief Operating Officer, Engr. John Ayodele, on January 20, 2022.
Ayodele in his statement said that the Receiver/Manager was at the headquarters of IBEDC on January 20, 2022, to formally take charge of the power firm.
What IBEDC is saying in the statement
The statement reads, ‘’Further, to the judgement wherein the Federal High Court on the 8th of September 2021 granted preservative orders in favour of Asset Management Corporation AMCON, (being the Receiver/Manager of Integrated Energy Distribution and Marketing Limited); the court has appointed Mr Kunle Ogunba Esq.SAN to act as Receiver/ Manager Nominee in the receivership action.
‘’Based on the foregoing the Receiver/Manager came in today 20th January 2022 to the IBEDC Headquarters to take charge formally and subsequently met with the Management team. Therefore,Ihereby wish to inform all staff that there is no cause for alarm. We are assured of job security which entails our position/ duties In the company,being entitlements to our salaries and other benefits etc.
‘’On behalf of the Management Iurge us all to kindly go about the efficient discharge of our duties to ensure a speedy and mutually beneficial resolution.
‘’I wish us all the best, while I appeal that we continue to remember IBEDC In our prayers.’’
What you should know
Recall that NERC in an order on June 19, 2018, directed IBEDC to commence the process of dissolution of its Board within 21 days period, citing alleged delay in the repayment of some loans by IBEDC investors.
The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses
The IBEDC directors, led by Tunde Ayeni, however, responded swiftly to the allegation, stating that it has lived up to its financial commitments to IBEDC, disclosing that as at Thursday 14 June 2018, it had paid its monthly commitment up to date.
In a bid to resolve the matter once and for all, the aggrieved directors sued NERC for its decision to suspend them from the Board of IBEDC.
An Abuja Federal High Court on Friday, July 10, 2020, set aside the order of NERC removing the Tunde Ayeni led Board of Directors of the Ibadan Electricity Distribution Company, IBEDC.
Also, AMCON, had in October 2021, appointed itself as receiver/manager over all assets of the Integrated Energy Distribution and Marketing Limited, core investor in Ibadan Electricity Distribution Company (IBEDC), by virtue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dated 30th November 2018.
