BPE Explains Appointment Of New Board For AEDC

New BPE DG assumes office, urges dedication to duty | The Guardian Nigeria  News - Nigeria and World News — Appointments — The Guardian Nigeria News –  Nigeria and World News

Yemisi Izuora

The Bureau of Public Enterprises (BPE) has offered better explanation as to why the board of the Abuja Electricity Distribution Company (AEDC) was replaced by an interim governing board.

The Bureau first declared the changes was not effected based on interference by the Federal Government but purely on the basis of legal processes.

The same position was maintained by the Nigerian Electricity Regulatory Commission (NERC).

The agencies in a joint statement said the legal processes arose from the failure of the core investor in AEDC to meet its obligations to a lender, adding that the government remains committed to ongoing initiatives on the recovery of the electricity sector.

The statement signed by the NERC’s Chairman, Sanusi Garba and BPE’s Director General, Alex Okoh, said their attention were drawn to the misrepresentation in the media leading to the change in composition of the board at AEDC.

The statement explained that there has been an ongoing dispute amongst competing factions of AEDC’s majority shareholder/core investor (KANN Utility Company Limited) which spilled over with the lender that provided the acquisition loan to KANN.

It noted that during the crisis, AEDC not only struggled to meet its obligations to the market under the terms and conditions of its license but was also unable to meet its obligations to key stakeholders in the organisation including staff which culminated in the industrial action by members of the Nigerian Union of Electricity Employees (NUEE).

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