Electricity distribution companies (DisCos) have dragged the
federal government to court over alleged undue interference in
their business operations.
The federal government holds 40 percent shares in the power
firms.
The suit, seen by TheCable, was filed at the federal high court
in Abuja on May 14 by 10 DisCos.
The applicants are Abuja, Ibadan, Eko, Ikeja, Kaduna, Kano, Jos,
Benin, Enugu and Port Harcourt electricity distribution
companies.
The DisCos asked the court to stop the Nigerian Electricity
Regulatory Commission (NERC) from conducting a forensic audit of
their operations.
Other respondents are the national economic council,
attorney-general of the federation (AGF) and Transmission Company
of Nigeria (TCN).
“An order directing that the grant of leave shall operate as a
stay of any further action(s) or proceedings by the respondents,
their officers, employees, servants, agents, privies, related
parties and any other person acting through or on behalf of the
respondents, howsoever described, from, in any manner whatsoever,
(i) acting in connection with the notice of forensic audit issued
by the 1st respondent or such similar letter(s), notice(s) or
instrument(s), and (ii) conducting a forensic audit of the
applicants’ operations pending the hearing final determination of
this action and/or further direction by this honourable court,”
court papers seen by TheCable read.
“The 1st respondent is now taking steps to conduct the forensic
audit and compel the applicants to inter-alia present their
financial, administrative and relevant technical records, books,
accounts and other documents including the applicants’ minutes of
meetings to the forensic auditors appointed by the 1st respondent
to conduct the forensic audit.
“The applicants are apprehensive that the 1st respondent will
impose sanctions on the applicants and their directors, if the
applicants fail to comply with the notice of forensic audit and/or
co-operate with the forensic auditors appointed by the 1st
respondent.
“The applicants’ could not bring this application before the
expiration of the notice period in the notice of forensic audit
because of the ravaging COVID-19 pandemic and the lockdown
restrictions and other measures put in place by the government to
curb the spread of the virus.”
A top official in one of the DisCos who spoke with TheCable on
condition of anonymity, said meddling in the operations of firms
when they have boards is unacceptable.
“There are so many issues we are battling with in the power
sector. We are private companies and we cannot take the
interference anymore. That’s why we have decided to take this to
court,” the official said.
“The federal government is pushing the DisCos as though it’s
their business. If you have the normal equity, you have the right
to do all that.
“The government said it will provide two-month electricity for
Nigerians because of COVID-19. Now, people are not paying. It’s
seriously affecting our collection. Yet, they expect us to remit
one-hundred percent.”
In November 2019, the national economic council appointed Nasir
el-Rufai, governor of Kaduna state, as head of the audit
committee.
Sale Mamman, the minister of power, had earlier warned DisCos to
step up capacity saying the federal government could not continue
subsiding electricity without a positive outcome.
Electricity distribution companies (DisCos) have dragged the
federal government to court over alleged undue interference in
their business operations.
The federal government holds 40 percent shares in the power
firms.
The suit, seen by TheCable, was filed at the federal high court
in Abuja on May 14 by 10 DisCos.
The applicants are Abuja, Ibadan, Eko, Ikeja, Kaduna, Kano, Jos,
Benin, Enugu and Port Harcourt electricity distribution
companies.
The DisCos asked the court to stop the Nigerian Electricity
Regulatory Commission (NERC) from conducting a forensic audit of
their operations.
Other respondents are the national economic council,
attorney-general of the federation (AGF) and Transmission Company
of Nigeria (TCN).
“An order directing that the grant of leave shall operate as a
stay of any further action(s) or proceedings by the respondents,
their officers, employees, servants, agents, privies, related
parties and any other person acting through or on behalf of the
respondents, howsoever described, from, in any manner whatsoever,
(i) acting in connection with the notice of forensic audit issued
by the 1st respondent or such similar letter(s), notice(s) or
instrument(s), and (ii) conducting a forensic audit of the
applicants’ operations pending the hearing final determination of
this action and/or further direction by this honourable court,”
court papers seen by TheCable read.
“The 1st respondent is now taking steps to conduct the forensic
audit and compel the applicants to inter-alia present their
financial, administrative and relevant technical records, books,
accounts and other documents including the applicants’ minutes of
meetings to the forensic auditors appointed by the 1st respondent
to conduct the forensic audit.
“The applicants are apprehensive that the 1st respondent will
impose sanctions on the applicants and their directors, if the
applicants fail to comply with the notice of forensic audit and/or
co-operate with the forensic auditors appointed by the 1st
respondent.
“The applicants’ could not bring this application before the
expiration of the notice period in the notice of forensic audit
because of the ravaging COVID-19 pandemic and the lockdown
restrictions and other measures put in place by the government to
curb the spread of the virus.”
A top official in one of the DisCos who spoke with TheCable on
condition of anonymity, said meddling in the operations of firms
when they have boards is unacceptable.
“There are so many issues we are battling with in the power
sector. We are private companies and we cannot take the
interference anymore. That’s why we have decided to take this to
court,” the official said.
“The federal government is pushing the DisCos as though it’s
their business. If you have the normal equity, you have the right
to do all that.
“The government said it will provide two-month electricity for
Nigerians because of COVID-19. Now, people are not paying. It’s
seriously affecting our collection. Yet, they expect us to remit
one-hundred percent.”
In November 2019, the national economic council appointed Nasir
el-Rufai, governor of Kaduna state, as head of the audit
committee.
Sale Mamman, the minister of power, had earlier warned DisCos to
step up capacity saying the federal government could not continue
subsiding electricity without a positive outcome.