THE Nigerian Electricity Regulatory Commission (NERC) has ordered the Ibadan Electricity Distribution Company (IBEDC) to recover the sum of N5.7bn misappropriation of the Nigeria Electricity Market Stabilisation Fund (NEMSF) even as it fined the company a sum of N50million for the same reason.
The N5.7billion is 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 IBEDC under the Nigeria Electricity Market Stabilisation Fund (NEMSF) granted by the Central Bank of Nigeria (CBN) towards the improvement of infrastructure in the company which includes metering.
NERC’s Head of Public Affairs, Usman Abba Arabi in a statement issued on Thursday In Abuja said the directive came from the outcome of an open book review conducted on the financial records of Ibadan Electricity Distribution Company plc (IBEDC).
It stated that the company was found wanting on two grounds of inappropriate financial transactions and was subsequently fined a sum of N50m.
The fine, it explained;” was an account of its failure to secure a refund of an interest-free loan the Board of IBEDC granted to its core investor group.”
It added that the industry regulator is also reviewing the utilisation of NEMSF in all other distribution companies.
“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%,” the statement reads.
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