BPE clarifies events at the Benin Electricity Distribution Company

Sun, Sep 18, 2022
By editor
2 MIN READ

Business

THE Bureau of Public Enterprises, BPE, says it is monitoring the events at the Benin Electricity Distribution Company, BEDC,,and that it is aware that the Interim Board recognized by the Nigerian Electricity Regulatory Commission, NERC, and the Bureau has retaken operational control of the Headquarters in Benin with the support of the authorities.

In a statement, the BPE said that the Interim Board already had financial control of the entity and the usage of non-state actors by the former Board and Managing Director to forcefully disrupt the affairs of the entity was unfortunate.

“The actions if left unchecked risked plunging the citizens of Delta, Edo, Ekiti and Ondo (under the BEDC franchise) into darkness,” it noted.

It recalled that Vigeo Holding having defaulted on their loan facilities and having collateralized their controlling shares had lost ownership in the entity and that restructuring action had been announced on July 5th, 2022 by BPE and NERC for the Kano, Kaduna, Benin and Ibadan DiSCO franchises with Fidelity Bank stepping in to the Board and the appointment of an interim Management by BPE and NERC to stabilize the entities and avert any operational issues arising.

“The entities are to be transitioned from the Banks control to more financially and technically competent private investors under a structured process being monitored by the National Council on Privitisation, NCP, (via the Bureau) and the Central Bank of Nigeria.

“While the restructuring action in Kano, Kaduna and Ibadan took place without issue, the Benin DiSCO restructuring had faced disruptions by the investors that were exited,” it said.

According to the statement, the BPE has commended the professionalism and actions of the relevant security agencies that supported the operational takeover of the Headquarters facility in Benin and the reinstatement of its operational control to the recognized interim Board and Management.

“BPE alongside NERC will continue to monitor the DiSCO and work with the Ministry of Power and relevant law enforcement agencies to ensure no disruptions to service occur and that the interim Board and Management are allowed to proceed with their work unimpeded,” the statement signed by Yunana Jackdell Malo, Director, Industries & Services of the BPE, said.

KN

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