Twist in AEDC crisis, as Court asks parties to stay action

Date:

By Etuka Sunday 

The Stakeholders’ Crisis at the Abuja Electricity Distribution Company (AEDC), has taken a new twist as a Federal High Court, sitting in Abuja on Friday, asked parties involved to stay action pending a hearing slated for December 20, 2021.

Recall, the Crisis became visible Monday, when the DisCo’s union under the auspices of the National Union of Electricity Workers (NUEE) went on strike over unpaid allowances and other entitlements,  forcing the government to suspend the company’s management. 

The Minister of Power, Engr. Abubakar Aliyu then said in a statement that the removal of the management was because UBA exercised its right to takeover the DisCo’s 60 percent stake due to failure of the shareholders – KANN Utility to complete a loan obligation.

READ MORE  Sterling Bank seals deal with CILT to boost transport sector

On Thursday, the Bureau of Public Enterprises (BPE) which holds 40% stake on behalf of the federal government, announced the interim management led by a former PHCN executive, Engr. Bada Akinwumi. 

As of Friday, the new management was yet to assume duty. However, the shareholders comprising CEC Africa and KANN had filed a suit on December 8 (Wednesday), titled FHC/ABJ/CS/1557/2021, restraining the Attorney General of the Federation (AGF) and Central Bank of Nigeria (CBN), BPE, UBA and United Capital Trustees Limited and AEDC from any action against the shareholders.

Sources from the parties who were at the hearing on Friday, said Justice Inyang Ekwo the presiding judge ordered that the defendants be notified within five days of the stay action order. 

READ MORE  U.S., Poland urge tougher checks on foreign influence over 5G networks

It was not clear if the maintenance of status quo order by the judge, should be effective before the announcement of the removal of the AEDC management or after the decision was taken as of Monday.

But the sharehokders in the ex-parte motion had sought an order restraining the AGF, CBN, BPE and Ministry of Finance from interfering with the operations and management of AEDC.

They also sought the legal directive to restrain UBA and its parties from taking over the shareholders equity in the DisCo.

Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.

READ MORE  SON coordinates marking of 2020 ARSO continental essay competition

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

APC report Ogun gov’ship aspirant to Police over alleged impersonation

By Lateef Ibrahim   The All Progressives Congress (APC) has...

Former Kaduna NDC gov’ship aspirant defects to APC

By Jude Opara     By Musa Baba Adamu with agency...

Police Arrest 10 Suspects, Recover Rifles, Ammunition 

Police Arrest 10 Suspects, Recover Rifles, Ammunition  The Nigeria Police...

Katsina Executive Council Approves N828.6bn 2027 Budget Proposal

Katsina Executive Council Approves N828.6bn 2027 Budget Proposal   Katsina State...