Wole Olanipekun Voids Makoju, Others’ Appointment At Abuja Electricity Company
The position of the newly appointed directors of the Abuja Electricity Distribution Company Ltd (AEDC) appears shaky following the clarifications that the KANN Utility Company, the parent body of the power firm is under receivership and any appointment made now is illegitimate.
Joseph Makoju, the former Group Managing director of Dangote Cement Plc was purportedly appointed alongside Ibrahim Aliyu, Olubunmi Peters, George Nwangwu, and Faruk Aliyu as new directors on the board of AEDC in November according to a statement from CECA, one of the owners of AEDC.
CECA in its 6th November statement said the board of KANN Utility Company Limited had withdrawn Shehu Malami, the AEDC Chairman; Siyanga Malumo, the Vice-Chairman; and Emmanuel Katepa, a Director and MD, CECA, Ahmad Maiyaki and Olusegun Doherty and re[laced with Makoju and other new directors.
Wole Olanipekun, the Receiver/Manager for KANN Utility Company Ltd in a public notice titled “Recent Developments in KANN Utility Company Limited (in Receivership) of Abuja Electricity Distribution Company Plc” however noted that a subsisting Federal High Court order invalidates the appointments of Makoju and others to the board of the AEDC
In the public notice signed by Olanipekum, he stated that “There was no withdrawal or replacement of directors at the Abuja Electricity Distribution Company Plc, (ABEC) a portfolio company of KANN Utility Company Limited’ as he warned that the purported media reports on the withdrawal and replacement of Directors should be disregarded.
‘Anybody or group who deals with them does so at their risk”, Olanipekun stated in the public notice..
“My attention has been drawn to the recent reports in the media with respect to the purported withdrawal and replacement of certain directors of Abuja Electricity Distribution Company Plc, (ABEC) a portfolio company of KANN Utility Company Limited of which I am the duly appointed receive and managed (Receiver/Manager).
He advised the general public, including all secured and unsecured creditors and debtors, shareholders, officers, employees, agents and all contractors counterparties of ABEC and Kann should please take note of the Court order.
“By a deed of appointment dated 29th January 2020, I was appointed and as the Receiver and manager over all the assets and undertakings of KANN. Following my appointment as Receiver and manager, orders in the aide of the receivership was made by the Federal High Court, Lagos dated 19th February 2020..
The receiver /Manager added that he was duly appointed by the board of directors of Kann Utility Company Limited.
“Further to my appointment, all powers of the board of directors of KANN in relations to all its assets and undertakings (including, for the avoidance of doubt, its controlling shareholdings in AEDC) have ceased and have been conferred on me in my capacity as the Receiver/ Manager of KANN.
“The purported withdrawal and replacement of the Directors of AEDC were undertaken without my involvement or consent. It also constitutes an attempt to interfere with and disrupt the ongoing receivership and therefore illegitimate and at variance with the subsisting order of the Federal High Court. Whilst actions are being taken to rectify the situation and ensure that relevant actors face consequences, I must hereby reiterate that my position as Receiver / Manager of KANN remains valid in full effect under the protection of the court.
“Accordingly, any person who /wish deals or continues to deal with the directors of KANN or the purported new directors of AEDC in relation to the business, assets, or undertakings of KANN or AEDC from the date hereof, does so, solely at his /her or its own risk. Including potentially, the risk of being party to action undertaken In contempt of court.”
The AEDC was part of the distribution company that was unbundled from the defunct Power Holding Company of Nigeria (PHCN) and privatised in 2013 by the administration of the former President Jonathan Goodluck. At the time, AEDC was acquired by KANN Utility Company Limited, jointly owned by Xerxes Global Limited, a local firm; and CEC Africa Limited (CECA), a pan African utility firm.
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