….. Ordered to recover N5.75bn inappropriate transactions with interest
For misapplying N5.6 billion of the N11.367 billion loan it got from the Federal Government, the Ibadan Electricity Distributiin Company (IBEDC) has been fined N50 million by the Nigerian Electricity Regulatory Commission (NERC).
It has also been ordered to recover the money it gave to its core investor from the loan sum with a 10% interest.
A statement on the development by NERC spokesman, Dr. Usman Arabi reads in full: “Following the outcome of an open book review conducted on the financial records of Ibadan Electricity Distribution Company plc (IEDC), the Nigerian Electricity Regulatory Commission found the company wanting on two grounds of inappropriate financial transactions and was subsequently fined a sum of N50m. “The fine was on account of its failure to secure a refund of an interest free loan the Board of IEDC granted to its core investor group. Information from the Commission indicates that the industry regulator is also reviewing the utilisation of NEMSF in all other distribution companies.
“The Commission had, vide its Order 173, directed IEDC to recover the sum of N5.7bn being the balance of the inappropriate loan of N6bn granted by the utility to IEDMG, the core investor in Ibadan Electricity Distribution Company plc. The loan was sourced from a total sum of N11.367bn disbursed to IEDC under the Nigeria Electricity Market Stabilisation Fund granted by the Central Bank of Nigeria towards the improvement of infrastructure in the company including metering. The repayment of the loan to CBN by the 11 distribution companies has continued to be made as a first charge on the revenues of the companies.
“The Commission has reaffirmed that it will pursue the full recovery of the misused funds from IEDC including the accrued interest at NIBOR + 10%.”