Kenya Power profit down by bad debt, rising costs

ABUJA - The Association of Bureaux De Change Operators of Nigeria (ABCON) Friday alerted the public over ongoing security investigation on $100 bills being imported from India into Nigeria.

The ABCON President, Alhaji (Dr) Aminu Gwadabe, who disclosed the development to financial journalists after the group’s National Executive Council (NEC) Meeting in Lagos, said the $100 bill is majorly counterfeited because of huge profit margins that come with it.

He said some of the fraudsters objective is not only to make profit, but to undermine Nigeria chances for automatic membership of the Financial Action Task Force (FATF) after assessment of the country’s

The firm reported Sh2.46 billion in pre-tax profit for the six months ending December 2018, against Sh2.93 billion made over a similar period in 2017 - despite its revenues from the sale of electricity going up by more than 21 per cent.

Electricity sales went up to Sh56.9 billion compared to Sh46.9 billion in 2017.

The company said the decline in profits was occasioned by increased spending on transmission of electricity to its over six million customers.

Transmission and distribution costs went up by a third, financial system scheduled for the first quarter of this year.

The ABCON boss said the issue of fake dollar in circulation has been observed and reported at the relevant security agencies adding that the ABCON, has in the interest of the economy and Bureaux De Change (BDCs) businesses, secured Central Bank of Nigeria while finance costs rose by 23.5 per cent, eating into revenues.

During the period, Kenya Power made a Sh2.5 billion provision for bad debts, further eating into its earnings.

“In an effort to enhance power supply and connect more customers, the transmission and distribution costs increased by 37.3 per cent to (CBN) and Economic and Financial Crimes Commission (EFCC) backing to begin nationwide campaign against fake currencies in the country.

He said rising cases of fake currencies in circulation has led to huge losses to BDC operators and the economy.

Gwadabe said that ABCON, is educating the public on how Sh21.7 billion from Sh15.8 billion recorded during the period ended December 31, 2017,” stated the company in the financial results.

“Finance costs increased by 23.5 per cent to Sh4.02 billion from Sh3.25 billion incurred in the half-year period to December 31, 2017.”

Kenya Power is still reeling to identify fake dollar bills in order to protect the image of the country in the eyes of foreign investors.

“It is part of our objectives which in enshrined on our constitution as an association to eliminate the incidences of fake currencies circulation thereby enhancing the image of the country and transparency in from the loss of most of its management team, who were arrested and charged with corruption.

The amount of money paid to thermal power generating companies fell by half during the six months to Sh6.9 billion compared to Sh12.3 billion the previous year. - STANDARD DIGITAL OF KENYA

our operations,” he said.

Gwadabe said the ABCON NEC has therefore released a guide to all BDCs on how to detect a fake dollar bill.

He disclosed that there are seven dollar bills of $1, $2, $5, $10, $20, $50 and $100 and seven steps to authenticate them.

“The weight of each bill is one gram, 2.61 inches wide and 6.14 inches length.

- TRIBUNE OF NIGERIA