The Ibadan Electricity Distribution Company (IBEDC) has been found wanting by an audit report in the management bailout fund for the electricity sector.
The company is among the first of the two DisCos to get a loan of N11.36 billion from the N213bn NEMSF.
Records showed that the DisCos also partook in the N39.53bn disbursed in the second tranche to six companies. It enjoyed the fund alongside Enugu and Kano DisCos, with Ughelli, Egbin and Geregu GenCos.
Sources, however, said the DisCo may have allegedly not spent the two fund releases wholly in clearing its legacy issues as against extant electricity market regulations.
When contacted, the Chief Financial Officer (CFO), Ibadan DisCo, Ronke Owotomo, said: “I can’t respond to the text. I don’t know you, and you did not contact my company. You should get in touch with my managing director. Send a letter to him, whatever questions you have, he is ready to answer them.”
The official email of the MD, John Duncan Donnachie, was provided through a text message by the CFO and Daily Trust enquiries were sent to it last Friday, but at the time of filing this report on Sunday, there was no response from him.
When ANED was consulted for their position on this, Mr. Adeyeye, the regulatory specialist, said the issue was verifiable from the account and audit books of the DisCo.
“If you look into the books of Ibadan DisCo, you can easily track out what component of this fund that has been spent and what it has been spent for.
“We are aware that they invested the money in investments that strengthen their business. We are not aware of any other spending.
“I know it’s a fact that they bought transformers and expanded their sub-stations; and these projects are verifiable. We have seen some of the infrastructures and they are part of the legacy issues they are meant to clear,” Adeyeye explained.
Our sources said the regulator, Nigerian Electricity Regulatory Commission (NERC) may have waded into the matter to ascertain the true position of the fund utilisation and enforced prescribed sanctions for defaults.
NERC chairman, Dr. Anthony Akah, in a text message in response to Daily Trust said findings from the audits of the DisCos were almost ready and that they would take action on defaulting ones.
“We have conducted open book review of financial statements and operations of all DisCos and we are almost done with analysis of our findings.
“We will take necessary actions,” Akah said.