The Nigerian Electricity Regulatory Commission (NERC) on Wednesday announced the suspension of the board of directors of Ibadan Electricity Distribution Company (IBEDC), citing financial impropriety.
Mrs Vivian Mbonu, the Head Media Unit, in a statement made available to newsmen in Abuja, noted that suspension came vide NERC’s Order No NERC/181/2018 of June 19th 2018.
“The Nigerian Electricity Regulatory Commission (NERC) has, vide its Order No NERC/181/2018 of June 19th 2018, suspended the Board of Directors and other key management staff of Ibadan Electricity Distribution Company (IBEDC) on account of the company’s default in the recovery of an inappropriate shareholder loan of N6billion granted to Integrated Energy Distribution and Marketing Group (IEDMG) Ltd by the utility” reads the statement in parts.
IEDMG is the core investor in IEBDC following the privatisation of electricity distribution companies by the Federal Government.
According to the statement, 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 regulatory agency had earlier fined IBEDC a sum of N50million on the 18th September 2017 for non-compliance with Order No NERC/173/2017 directing the company to fully recover the outstanding sum of N5.7bn being the balance of the loan granted by the utility to IEDMG.
