Business

IBEDC board members suspended over N5.7b loan balance default

The Board of Directors and key management staff of the Ibadan Electricity Distribution Company (IBEDC) have been suspended by the Nigerian Electricity Regulatory Commission (NERC) over N5.7 billion loan balance default.

The suspension according to the commission’s Head of Media Unit, Mrs Vivian Mbonu, in a statement obtained by DAILY POST on Wednesday was “vide its Order No NERC/181/2018 of June 19th 2018.”

It was gathered that NERC suspended them 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.

IEDMG, according to her, 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.

The Commission, it was gathered 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.

OAdmiN

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