BREAKING NEWS, Judiciary
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THE Federal High Court, Lagos, stops EKO Disco from operating its illegal parallel account with Ecobank which it opened under the Credit Advance Payment Meters Implementation agreement
The Eko Electricity Distribution Company, EKEDC, will not be able to operate a parallel account it opened under the Credit Advance Payment Meters Implementation, CAPMI, agreement it had with Moman System Nigeria Limited. A Federal High Court sitting in Lagos, on Tuesday, August 25, ruled on an ex-parte application filed by a Lagos lawyer, Momas System Nigeria Ltd stopping EKEDC from operating the account number 2562128948 it opened with Ekobank for the CAPMI.
Justice Mohammed Yunus of the Federal High Court gave the order which was carried out through exparte motion pending the hearing and determination of the motion on notice.
The court directed Eko distribution Company to direct all its electricity customers in the area exclusively assigned to MOMAS to pay fees for the supply and installation of meters into the Escrow CAPMI in the bank account controlled jointly by EKEDC and MOMAS.
MOMAS maintained a joint account with EKO Disco as signatories pursuant to the CAPMI scheme. MOMAS said that the company was contracted to supply and install meters to six business units under EKO Disco which comprises of Ijora, Lekki, Island, Apapa, Festac and Surulere under the CAPMI schemes.
According to MOMAS, contrary to their agreement the distribution company operates another parallel account without informing MOMAS which is always a signatory to the joint meter account with EKO Disco. MOMAS said that rather than consider its plight and agony in installing of the meter, EKEDC contracted another installation to company which imports pre-paid meters into the country.
“The Act was a breach of contract and the guidelines on CAPMI committed to by EKEDC. We suffered technical crisis including pile up of unsold meters and spare parts.
This has made us unable to service our loan facilities obtained from banks, which has astronomical piled up because of interest,” MOMAS said.
The company said: “This has also affected the ability of the company to pay its workers and contractors. The frustration of the contract with its foreign technical partner and the payment of high repudiation cost to its foreign partner which has denied it a number of benefits due to the agreement with transfer technology.”
The company said that the Bank of Industry had written the ministry of power on the huge debt owed by Momas which caused the imminent collapse of the bank’s investment and business.
— Sep 7, 2015 @ 01:00 GMT
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