No Contractual, Statutory or Regulatory Basis for Fidelity Bank to take over our board - BEDC fights back

The under-performing Benin Electricity Distribution Company, BEDC, has hit back at Fidelity Bank Plc., saying there is no contractual, statutory or regulatory basis for Fidelity Bank to take over its board, over its inability to repay the loans obtained to acquire majority stake in the DisCo.

Fresh Angle International can report that the BEDC statement released this morning, Thursday July 7, on the company’s twitter handle, emphasized: “For the avoidance of doubt, there is no legal basis whatsoever for the alleged actions by Fidelity Bank Plc. as it relates to BEDC, as the acquisition facility in question, was not taken by BEDC and neither have the shares in BEDC been given as security to Fidelity Bank or to any other person”.

The statement credited to ‘BEDC ELECTRICITY PLC MANAGEMENT’, noted inter-alia: “The attention of the management of BEDC Electricity Plc (BEDC) has just been drawn to reports about the purported call by Fidelity Bank Plc, on the purported collateralized shares of Kano Electricity Distribution Company, Kaduna Electricity Distribution Company and BEDC Electricity Pic (the DisCos), in a bid to take over the respective boards of the DisCos over the inability to repay the loans obtained to acquire majority stakes in the DisCos in furtherance of the 2013 privatisation exercise. BEDC unequivocally states that there is no contractual, statutory or regulatory basis for such.

“The reports allege that certain individuals have been appointed to the Board of our company and that the putative appointments have been allegedly acquiesced to by both Bureau of Public Enterprises (BPE) and the Nigerian Electricity Regulatory Commission

“Instead, the public should note that the only nexus between BEDC and Fidelity Bank Plc in connection with the disputed acquisition facility is that Vigeo Holdings Limited (VHL a non-shareholder of BEDC) obtained credit facilities from Stanbic IBTC Bank Limited, Fidelity Bank Plc and Keystone Bank Plc (the VHL Lenders.

“The said credit facilities and any enforcement action in relation thereto) have in the meantime become subject of litigation in a Court action instituted by VHL and other plaintiffs (the VHL Action) with Suit No: FHCU/CS/239/22-Vigeo Holdings Limited and 4 Ors v. Stanbic IBTC Bank Limited and therefore subjuice. BPE is well aware of foregoing

“It is thus clear that any attempt by Fidelity Bank and/or BPE to intervene in BEDC in the manner being reported is not only unlawful but illegal, and it is our responsibility to resist it in accordance with the law.

“We understand that this must be a confusing time for our customers, investors and partners-we however assure our customers, investors and partners in the electricity business to ignore such reports - as they have no legal basis whatsoever. In the meantime, we assure our customers of our continuing smooth operation and remain focused on our mission to assure delivery of quality and reliable electricity to the good people of Edo Delta, Ondo and Ekiti states”.

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