NERC fined IBEDC 50m, orders them to recover N5.75bn inappropriate transactions
A statement issued by NERC spokesman, Usman Abba-Arabi, yesterday, said the fine followed the outcome of an open book review conducted on the financial records of the Distribution Company (DisCo).
NERC said it found the DisCo wanting on two grounds of inappropriate financial transactions and was subsequently fined 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,” it noted.
The commission noted that it was also reviewing the utilisation of the Nigeria Electricity Market Stabilisation Fund (NEMSF) loan given to the 11 DisCos by the Central Bank of Nigeria (CBN)
NERC, in its Order 173 in the statement yesterday, finally directed IEDC to recover N5.7bn being the balance of the inappropriate loan of N6bn granted by the utility to IEDMG, the core investor in the DisCo. The commission further revealed that the loan was sourced from the N11.367bn disbursed to the DisCo under CBN’s NEMSF to improve power infrastructure.
The commission reaffirmed that it would pursue the full recovery of the misused funds from the Ibadan DisCo, including the accrued interest at the Nigerian Inter-Bank Offered Rate (NIBOR) of over 10 per cent.