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Eko DISCO: NERC writes board chairman, says MD/CEO sacked in error

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Eko DISCO: NERC writes board chairman, says MD/CEO sacked in error

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The Nigerian Electricity Regulatory Commission (NERC) has clarified that its resolution on alleged ghost workers and crisis in the Lagos-based Eko Electricity Distribution Company Plc (EKEDC) which led to the removal of Dr Tinuade Sanda, as Managing Director/Chief Executive Officer and other management staff, was misinterpreted.

The chairman of EKEDC, Dr Dere Otubu, was said to have acted on her removal based on the resolution.

The EKEDC has been dogged by management crisis which started last year, with the discovery of alleged fraud and ghost workers on its payroll

The sudden announcement of the removal of Dr Sanda, as MD/CEO, further escalated the infighting amongst the shareholders.

But NERC intervened to clarify its previous directive to the board of the company.

The chairman of NERC, Sanusi Garba, provided further clarification to its resolution in a letter to Otubu dated March 27, 2024.

He said, “We write further to our letter Rel, No. NERC/REG/EKEDC/GEN/S432/T/36 of 21 March 2024 conveying the resolutions of the Commission to Eko Electricity Distribution Plc (“EKEDP”) on the alleged ghost workers in the company.

“The Commission has noted the strong public interest generated by the current events of EKEDP and the various interpretations of the resolutions conveyed vide the said letter, particularly with respect to paragraphs 4b and 4e. We therefore hereby provide further clarification as follows:

“Paragraph 4b- All staff of EKEDP, irrespective of their form of engagement, will be subject to the Conditions of Service of EKEDP. The Commission deemed it necessary to pass this resolution based on the submission of EKEDP, at the meeting of 20 March 2024, that the Condition of Service (“CoS”) of EKEDP was not applicable to Seconded personnel from third-party providers.

“Paragraph 4c – EKEDP Board is expected to conclude its review of its investigation into the allegation of Ghost workers to identify all personnel involved in causing the loss of revenues to EKEDP no later than 27th March 2024.

“In a case where the indicted parties are seconded from third-party providers and since they are reportedly NOT subject to the EKEDP CoS, they are to be recalled to their parent companies to avoid the risk of further losses to EKEDP.

“In closing, the Commission recognises the powers of West Power and Gas Ltd and the EKEDP Board of Directors on the deployment and redeployment of staff including changes to the management of the utility at any point based on a credible corporate governance framework and in furtherance of the fiduciary responsibility of directors.

“This letter only seeks to provide clarification on the Commission’s earlier communication on this subject to avoid varied interpretations and further to the overriding public interest. Please accept the assurances of the Commission’s best regards and consideration.”