Interstate Electrics, winner of the Enugu Electricity Distribution Company, Enugu Disco, has said that the lease agreement of April 28, 2005, that purportedly granted the Aba Power Limited and Geometrics Power Aba Limited the power to distribute electricity within the areas specified in the lease (the ring-fenced islands) was made at a time they did not possess an electricity distribution licence, contrary to the provisions of Section 62(1) and (5) of the EPSR Act.
In a counter-affidavit deposed to by Engr. Onochie Anyaoku, on behalf of Interstate Electrics against the originating summons filed by Aba Power Limited and Geometrics Power Aba Limited, Interstate also said “the plaintiffs only obtained an electricity distribution licence on December 7, 2006, when by the provisions of Clause 4.1.1(a) of the purported lease agreement, the plaintiff was supposed to commence electricity distribution within the ring-fenced islands not later than 12 calendar months from April 28, 2005.”
The company further stated that “the purported lease agreement of April 28 was made after NEPA had ceased to exist sequel to the repeal of the NEPA Act (as amended) by Section 99 of the EPSR Act and that the purported Supplemental Agreement dated August 31, 2006 was not executed by the Bureau of Public Enterprises, BPE, and the Ministry of Finance Incorporated, the two shareholders and owners of Enugu Disco, as provided under Section 9 of the EPSR Act.
Anyaoku also claimed “that the transaction between BPE and the party seeking to be joined is the sale and purchase of 60 percent shares in Enugu Disco, and not the sale of Enugu Disco’s distribution equipment or other assets.
“All the assets of Enugu Disco, including those within the ring-fenced islands at Aba and Ariaria, belong to Enugu Disco.”
The two plaintiffs companies in a suit filed at a federal high court in Abuja, sought to restrain the privatisation agency from listing the two business units among government-owned companies slated for privatisation. The agreement dated April 28, 2005 was said to have ring-fenced Aba and Ariara Business units within Enugu Disco and lease same to Aba Power Limited.
Information from Vanguard was used in this report.