Business Nigeria: Kano DISCO Reportedly Launders N670m in Messy BPE Sale

#1
According to investigations, the Kano Electricity Distribution Company, KEDCO, is laundering the sum of N670m in order to finance the BPE Sale of another Electricity Distribution company in Kaduna.

The Nigeria Electricity Regulatory Commission had probed Sahelian Energy last month for purportedly diverting N670 million of the company’s money to the Fidelity bank account of their sister firm Northwest Power, who is the preferred bidder for the Kaduna Electricity Distribution Company.

Northwest Power after entering the Share Sale Agreement with the Bureau of Public Enterprise last December reportedly used the money to pay the BPE 25% of the agreed sum as down payment and the deadline for the 75% balance was set to June 2014.

However, Northwest failed to beat that deadline and the BPE postponed the deadline for this payment instead of cancelling the contract and awarding the purchase to the next bidder in line.

BPE extended the deadline again toAugust 6, but Northwest still failed to pay up. Then BPE gave a final 60-day grace period, which expired this week on October 6. But the firm again failed to meet up.

According to YNaij, it looks like the government agency has been purposely extending the deadline in order to favour Northwest and try to save them from forfeiting their 25% initial payment.

Both Northwest and BPE haven’t reacted about this controversy, but analysts say the act undermines the privatisation process.

It is not clear if the BPE will extend the payment deadline in favour of Northwest for the third time or if they will cancel the contract and award a new contract of purchase to the bidder next in line. However, analysts are concerned about the way Sahelian Energy purportedly financed Northwest’s 25% part payment to BPE. They believe the BPE is complicit and that the agency’s representative on the Board of KEDCO allowed the money transfer to happen.

#YNaij #KEDCO #Kano #Kaduna #Nigeria #BPE
 

Attachments

[1694]
Your email address will not be publicly visible. We will only use it to contact you to confirm your post.
Top