• Wednesday, December 06, 2023
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Kano drags NCP, BPE to court over sale of electricity company


At last, Kano State government has dragged the National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE), the two Federal Government agencies charged with commercialisation and privatisation of public assets, to court in respect of the sale of Kano Electricity Distribution Company (KEDC).

The writ of claim challenging the sale of the company by NCP and BPE to a private concern, Sahelian PowerSPV, by the Kano government was laid before a Federal High Court in Abuja, last week, by a team of lawyers from Dikko and Mahmud Chambers.

The core of the claims by the state government, as regard the company, was that it over the years invested over N25 billion in it, thus deserved to be fully consulted before the privatisation.

According to a copy of the legal document deposited at the court and obtained by BusinessDay, the plaintiff particularly wants the court to declare it a joint-owner of the distribution company.

The plaintiff also wants the court to make a declaration that NCP and BPE have no power under the Electric Power Sector Reform Act 2005 to assume control of the assets owned or jointly owned by it and unilaterally transfer them to the Kano Electricity Distribution Company.

Also, the plaintiff is asking the court to make a declaration that the plaintiff as a substantial investor and co-owner in the electricity distribution assets within the state is entitled to participate and be consulted in the process of the privatisation of the electricity distribution assets.

In the same vein, the plaintiff is seeking for an injunction restraining the NCP and BPE by themselves, agents, officers, or servants from proceeding with the planned privatisation of the Kano Electricity Distribution Company Plc, through the sale, disposal, transfer or alienation of electricity distribution assets within Kano State to any third party.

This development is coming against the backdrop of recent payment of the mandatory 25 percent of the total offer value by all the preferred bidders for the 15 Electricity Distribution Companies put for sale by NCP and BPE.