News
DisCos Move To Stop FG Forensic Audit — Head To Court
Electricity distribution companies (DisCos) has instituted a legal action against the federal government to over an alleged meddling in their business operations.
The DisCos in a suit filed at Abuja federal high court is seeking to stop the Nigerian Electricity Regulatory Commission (NERC), an agency of the federal government, from conducting a forensic audit of their activities.
Other respondents are the national economic council, attorney-general of the federation (AGF) and Transmission Company of Nigeria (TCN).
The companies filed the suit on May 14.
The federal government holds 40 percent shares in the power firms.
The applicants are Abuja, Ibadan, Eko, Ikeja, Kaduna, Kano, Jos, Benin, Enugu and Port Harcourt electricity distribution companies.
Also read: May 29: Fani-Kayode Tackles Presidency Over Claims Of Buhari Achievements
“An order directing that the grant of leave shall operate as a stay of any further action(s) or proceedings by the respondents, their officers, employees, servants, agents, privies, related parties and any other person acting through or on behalf of the respondents, howsoever described, from, in any manner whatsoever, (i) acting in connection with the notice of forensic audit issued by the 1st respondent or such similar letter(s), notice(s) or instrument(s), and (ii) conducting a forensic audit of the applicants’ operations pending the hearing final determination of this action and/or further direction by this honourable court,” the court papers read.
“The 1st respondent is now taking steps to conduct the forensic audit and compel the applicants to inter-alia present their financial, administrative and relevant technical records, books, accounts and other documents including the applicants’ minutes of meetings to the forensic auditors appointed by the 1st respondent to conduct the forensic audit.
“The applicants are apprehensive that the 1st respondent will impose sanctions on the applicants and their directors, if the applicants fail to comply with the notice of forensic audit and/or co-operate with the forensic auditors appointed by the 1st respondent.
“The applicants’ could not bring this application before the expiration of the notice period in the notice of forensic audit because of the ravaging COVID-19 pandemic and the lockdown restrictions and other measures put in place by the government to curb the spread of the virus.”
A top official in one of the DisCos who spoke with TheCable on condition of anonymity, said interfering in the operations of firms when they have boards is unacceptable.
“There are so many issues we are battling with in the power sector. We are private companies and we cannot take the interference anymore. That’s why we have decided to take this to court,” the official said.
“The federal government is pushing the DisCos as though it’s their business. If you have the normal equity, you have the right to do all that.
“The government said it will provide two-month electricity for Nigerians because of COVID-19. Now, people are not paying. It’s seriously affecting our collection. Yet, they expect us to remit one-hundred percent.”
Advertise or Publish a Story on EkoHot Blog:
Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.
Citizen journalists will receive a token as data incentive.
Call or Whatsapp: 0803 561 7233, 0703 414 5611
