AEDC ownership: Investors kick as lender sues for contempt

Investors and the board members of the Abuja Electricity Distribution Company (AEDC) have been confronted again by the United Bank for Africa (UBA)

Investors and the board members of the Abuja Electricity Distribution Company (AEDC) have been confronted again by the United Bank for Africa (UBA) for contempt after it said a court barred them from taking decisions and owning the power utility firm.

Mr Bode Olanipekun, a legal practitioner had on December 7, 2020 warned the parties in a publication to desist from any link with AEDC as it was appointed by UBA and UBA Capital Trustees Ltd as Receiver and Manager of the DisCo.

• Migration: The socio-economic adventure with untold challenges
• FG to build resettlement cities for IDPs in Borno, Katsina, 3 others

Daily Trust reports that in May 2020, Olanipekun said UBA contested default in repayment of $18 million acquisition loan KANN Utility Company Limited, the AEDC investor used to acquire the DisCo in 2013.

The notice of contempt proceedings by UBA against KANN/AEDC at a Federal High Court in Lagos joined KANN; the Chairman, Amb. Shehu Malami; Siyanga Malumo, Engr. Emmanuel Katepa, and five others including the Inspector General of Police on the one hand; nine others including six of the initial eight persons as the parties cited for contempt, on the other hand.

“Take notice that unless you obey the directions contained in the Order of this Court made on February 19, 2020 by reversing your removal of the nominee directors of KANN Utility (1st defendant) in AEDC, you will be guilty of contempt of Court and will be liable to be committed to prison,” the notice stamped on December 14, 2020 showed.

AEDC and KANN Chairman, Amb. Malami was earlier contacted and he confirmed Olanipekun’s appointment was challenged.

A director at KANN and the Managing Director of CEC Africa, Engr. Katepa said the Receiver (Olanipekun) was aware that KANN challenged his appointment and filed court injunction.

In the preliminary objection notice filed in March, 2020, KANN said it has repaid the loan by $51m including interest and voided the claims of takeover of its asset by Olanipekun.

Ratio Practitioners and solicitors to KANN had on Tuesday in a newspaper publication, dismissed the claims by Olanipekun ‘because his appointment was challenged at the Federal High Court Lagos in a suit that is pending.’

“We understand that the challenge was primarily on the ground that the deed of all assets debenture which serve as a basis for his appointment is void.

“We therefore wish to put the general public on notice that all matters in respect of Bode Olanipekun’s purported appointment as a Receiver/Manager or the exercise of any such power are subjudice.

When contacted by telephone to verify the latest court notice, Mr Olanipekun however said, no formal contempt of court proceedings has started but said the order of court protecting him as the appointed receiver and manager has been violated by the investors.