Two companies- Aba Power Limited and Geometric Power Aba have been directed to stop parading as lawful operators of the two ring-fenced business units in Aba- Aba Business and Ariara.
A “caveat emptor” issued through a Federal High Court in Abuja, cited irregularities and defects of documents and agreements in possession of the companies that are said to be owned by the former Minister of Power, Prof Barth Nnaji.
Aba Power and Geometric Power Aba already are in court to excise the ring-fenced islands at Aba and Ariaria from the entire Enugu Distribution Company (DISCOS) pointing out existing agreements between the Federal Government and Aba Power Limited and Geometrics.
Enugu Disco is one of the successor companies created to take over the assets and liabilities of the initial holding company within Enugu coverage areas and its environs. Aba Power and Geometric Power Aba are in court to forestall the sale or privatisation of the entire Enugu Distribution Company.
The two companies in a suit number FHC /ABJ/CS/106/2013, filed at a Federal High Court in Abuja, sought to restrain the Bureau of Public Enterprises (BPE) from listing the two business units among government-owned companies slated for privatization.
Aba Power and Geometric Power Aba are anchoring their claim on a Memorandum of Understanding (MOU) Geometrics Power Limited entered into with the Federal Government on May 11, 2004 for the construction of 3 x 35MW Open Cycle Gas Turbine Power Plant to provide the emergency power to be added to the national grid in line with the power policy of the government.
On its part, Aba Power is claiming that it signed an agreement on 28th April, 2005 with National Electric Power Authority wherein NEPA leased all its assets at Aba and Ariara to Aba Power. However, Interstate Group, the company that emerged winner of the Enugu Distribution Company (DISCOS) and being an interested party in the power sector privatization has picked holes in the arguments canvassed by Aba Power and Geometric Power.
According to Interstate, rather than Geometrics Power Limited sticking to the terms of the MOU by generating power and pushing same to the national grid, it leveraged on the MOU to seek to procure for itself using its sister company, Aba Power Limited, the lease of the assets of NEPA in Owerri-nta, Osisi Oma, Ogbor Hill, Factory Road, and Port Harcourt Road in Aba, Abia State without going through any due process.
Consequently, Interstate Electrics Limited has filed a suit no: FHC/ABJ/CS/106/2013, seeking to be joined in the case instituted by Aba Power Limited and Geometrics Power Aba Limited against the BPE.
Interstate Electrics, winners of the Enugu Electricity Distribution Company (Enugu Disco), has affirmed Enugu Disco’s ownership of the Aba distribution by the Enugu Disco adding that the Aba area – Owerri-nta, Osisi Oma, Ogbor Hill, Factory Road, and Port Harcourt Road in Aba, Abia State – with its assets is an integral part of the Enugu Disco coverage and cannot be excised.
In his counter affidavit in opposition to originating summons dated 20th February, 2013 deposed to by Engr. Onochie Anyaoku, the company stated “that the legislation that currently governs the electricity industry in Nigeria is the Electric Power Sector Reform (EPSR) Act, 2005, which came into force and effect on 11th March, 2005; that the lease agreement of 28th April, 2005, that purported to grant the Plaintiffs the power to distribute electricity within the areas specified in the lease (the ring-fenced islands) was made at a time when the Plaintiffs did not possess an electricity distribution licence, contrary to the provisions of section 62(1) and (5) of the EPSR Act”.
The company further stated that the Plaintiffs only obtained an electricity distribution licence on 7th December, 2006, when by the provisions of Clause 4.1.1(a) of the purported lease agreement, the Plaintiff was supposed to commence electricity distribution within the ring-fenced islands not later than 12 calendar months from 28th April, 2005; that the purported lease agreement of 28th April, 2005 was made after the NEPA had ceased to exist sequel to the repeal of the NEPA Act (as amended) by section 99 of the EPSR Act and that the purported Supplemental Agreement dated August 31, 2006 was not executed by the Bureau of Public Enterprises (BPE) and the Ministry of Finance Incorporated, the two shareholders and owners of Enugu Electricity Distribution Plc (Enugu Disco) as provided under section 9 of the EPSR Act.
Engr. Anyaoku also claims “that the transaction between BPE and the Party seeking to be joined is the sale and purchase of 60% (Sixty percent) shares in Enugu Disco, and not the sale of Enugu Disco’s distribution equipment or other assets and “that all the assets of Enugu Disco, including those within the ring-fenced islands at Aba and Ariaria, still belong to Enugu Disco”.