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The House of Representatives has resolved to investigate the boardroom crisis in Eko Electricity Distribution Company (EEDC).
This resolution was followed by a motion moved on the floor of the House by Sani Bala (NNPP, Kano).
In the motion, Mr Bala informed his colleagues that the crisis in the EEDC poses a significant threat to the operation of the company which “controls one-sixth of power distributed from the national grid and covers several major commercial centres within Lagos – Ogun axis.”
He stated that the House needs to intervene to preserve the interest of the federal government in the company.
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“The lingering managerial crisis between the chairman and few directors on one side and a majority of other directors on the other side in the Eko Distribution Company is capable of impacting negatively on service delivery or optimum electricity distribution within the zone,” Mr Bala said.
Speaking further, the lawmaker explained that the crisis came “as a result of what has been described as undue personalisation of board authority, abuse of due process and vested interest including accusations of underhand dealings and impropriety.”
He said the attempt to address the crisis internally has failed, hence the need for the House to intervene in order to preserve the federal government’s 40 per cent stake in the company.
He, therefore, prayed that the House should mandate the House Committee on Power to intervene.
When the presiding Deputy Speaker Ben Kalu put the motion to vote, the majority of the members voted in support of it.
Crisis in EEDC
Members of the board of the EEDC are currently engaged in a tussle over the sack of its former Managing Director, Tinuade Sanda.
According to EEDC Chairperson, Dere Otubu, Ms Sanda was sacked following a directive from the Nigeria Electricity Regulatory Commission (NERC).
The Disco is obligated to comply with these directives since NERC derives its powers from the Electricity Act 2023.
In compliance with the aforementioned directive, all seconded staff from WPG Ltd are being released by Eko Electricity Distribution Plc and returned to WPG Ltd.
READ ALSO: Don’t distract our transformation plan for electricity sector- Power minister tells labour
“Accordingly, you are hereby relieved of your role, office, and position at Eko Electricity Distribution Plc effectively immediately, and returned to your employer, WPG Ltd,” Ms Sanda’s sack letter, dated 25 March, reads.
The company subsequently appointed Rekhiat Momoh as the managing director.
However, there are reports that the sack of Ms Sanda and the subsequent appointment of Ms Momoh has divided the board.
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