The Asset Management Corporation of Nigeria (AMCON) has taken over the management of the Ibadan Electricity Distribution Company (IBEDC) Ltd over insolvency.
In a memo distributed to all staff of the company (IBEDC), the Chief Operating Officer (COO), Engineer John Ayodele, informed them the “Receiver/Manager came in today 20th January 2022 to the IBEDC headquarters to take charge formally and subsequently met with the management team”.
This is coming three months after AMCON had appointed itself as receiver/manager overall assets of the Integrated Energy Distribution and Marketing Limited, core investor in IBEDC.
AMCON had at the time stated, “Take notice that AMCON has pursuant to Section 48 and 61 of AMCON Act 2010 been appointed Receiver/Manager over all the Assets of Integrated Energy Distribution and Marketing Limited as stipulated in the instruments executed in favour of AMCON by virtue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dated 30th November 2018 and a Notice of Appointment of the Receiver/Manager dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties.
“In circumstance, AMCON has appointed itself as the Receiver/Manager and will act through its Nominee, Mr Osayaba Giwa-Osagie SAN, over the entire undertakings, assets, goodwills of Integrated Energy Distribution and Marketing Limited, including their shares and interests in related companies and entities, monies kept in any bank in Nigeria.”
How it started
Justice Daniel Osiaigor of the Federal High Court, Lagos had in a ruling restrained Integrated Energy Distribution and Marketing Company Ltd and Polaris Bank from tampering with funds standing to their credit totalling $6,759,000 (approximately N2.8 billion) or its equivalent in any currency in 25 banks, the Debt Management Office (DMO), and Federal Ministry of Finance.
The Judge, who made the interim order of Mareva Injunction, also held that it would subsist pending the hearing and determination of a motion on notice filed against the firm and Polaris Bank by the United Bank for Africa (UBA).
The interim order followed UBA’s June 29 application filed and argued by its counsel, Temilolu Adamolekun, who appeared with Gbenga Akinde-Peters, supported by an affidavit sworn to by Anike Isinguzo and exhibits attached.
NERC sanction
The Nigerian Electricity Regulatory Commission (NERC) had, 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 N6 billion granted to Integrated Energy Distribution and Marketing Group (IEDMG) Ltd by the utility company.
IEDMG is the core investor in IEBDC, following the privatisation of electricity distribution companies by the Federal Government.
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.
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