The tussle in the board of KANN Utility Company Limited, owners of Abuja Electricity Distribution Company (AEDC) has raged on as the shareholders continue to differ on recent decisions and appointments in the board and the management.
Daily Trust had reported on Monday that while KANN Chairman and founder of Xerxes Global Investment Ltd, Amb. Shehu Malami, said the Corporate Affairs Commission (CAC) has expunged some alterations to the KANN’s document that paved way for the changes announced by his partner, CEC Africa, a publication in some daily newspaper on Tuesday contested this.
Ratio Legal Practitioners in the publication signed by one of its officials, Chris Okoye, Esq, said it was acting as solicitors to KANN Utility Company Limited.
The legal firm queried the process of one Bode Olanipekun, SAN, which had in a daily publication of December 7, 2020, said it was appointed as receiver and manager over all the assets and undertakings of KANN Utility.
Olanipekun had challenged the appointments of certain nominee directors of KANN on the board of AEDC.
The law firm also said based on what it called “erroneous interpretation of the powers of Olanipekun”, some individuals who were earlier removed as directors of KANN through a valid court order have now come forward to cause further confusion and deceive the general public.
“We, therefore, wish to put the general public on notice that all matters in respect of Bode Olanipekun’s purported appointment as a receiver/manager or the exercise of any such power is subjudiced.
“A caveat with respect to Bode Olanipekun’s purported appointment has been placed at the Corporate Affairs Commission (CAC),” the KANN solicitor clarified.
Implications for AEDC mgt
Meanwhile, sources privy to the tussle at KANN and AEDC have projected implications and likely actions of the multiple legal publications.
One of the officials who would not want to be named said with these, Amb. Malami remains the Chairman of KANN and the AEDC board, noting that a resolution at the last AEDC board meeting held that there will be no renewal of the expired contracts of the MD of AEDC, Engr. Ernest Mupwaya, and at least three others.
“The purported extension of contracts for any of them is null and void. So they automatically cease to be workers of AEDC. Being out of job, their expatriate status ceases and so they must head home,” the official said about those expatriates whose contract won’t be renewed.
If this happens as Engr. Mupwaya ought to leave in January, the Chief Operating Officer, Engr. Saidu, the highest legally recognised management member, would take over the management of AEDC.
Another source also said all ‘commands’ issued and contracts signed by the new members of the board would not be enforceable.
This official however called for a resolution of the issues. “Malami (Chairman) should call for a proper meeting of KANN. There (at the meeting) CECA can announce the sale of its shares.”
He also enquired why CECA would have gone to the Lusaka Stock Exchange to sell their shares in a Nigerian company, and “took steps to deceive CAC until the objections raised by other parties?”
He urged the Bureau of Public Enterprise (BPE) to act on it as it failed to raise objections on the violations initially.
