MOFI Revokes BPE's Power of Attorney in Electricity Discos
Orders immediate withdrawal of BPE nominees
The Ministry of Finance Incorporated (MOFI) has formally terminated the Power of Attorney (PoA) granted to the Bureau of Public Enterprises (BPE) in the 11 Electricity Distribution Companies (Discos), directing that henceforth, equity interests of the Federal Government of Nigeria (FGN) in all electricity successor companies be restored, held and treated by it.
The development was conveyed in a letter by the Managing Director of MOFI, Dr. Armstrong Takang, a copy of which was obtained by THISDAY yesterday. The letter captioned, "Re: Equity Holdings of the Federal Government of Nigeria in Electricity Distribution Companies," was addressed to the Chairman, Board of Directors of the Electricity Successor Companies and was copied to the Vice President, Kashim Shettima, who is the Chairman of the National Council on Privatisation (NCP); as well as the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun and the 11 respective Discos.
In the letter, the MOFI CEO directed that the BPE nominees on the board of directors of this Discos be withdrawn with immediate effect, and share certificates issued in the name of the privatisation agency immediately withdrawn and cancelled
He recalled that by virtue of the statutory mandate in Section 9 of the now repealed Electric Power Sector Reform Act, 2005, the BPE had been the holder of record of the equity interests of the Federal Government of Nigeria in the Discos.
According to him, in this regard, since the privatisation of the Discos was completed on November 1, 2013, BPE had nominated various persons to be directors and managed the implementation of the various rights and obligations of the FGN in the company.
Also, under a Power of Attorney (PoA) granted by the Minister of Finance in 2012, Takang explained that the BPE was appointed the lawful attorney of the MOFI to implement the decision of the National Council on Privatisation (NCP) to privatise the Discos via a sale of shares.
He noted that the responsibility thereby conferred by the finance minister was subsequently completed with the successful privatisation of November 2013.