The House of Representatives has mandated its Committee on Power to investigate the lingering board room crisis in Eko Distribution Company to protect the federal government’s stakes in the company and ensure optimal electricity distribution to the business axis of Lagos and Ogun states.
This followed the adoption of a motion moved by Rep. Sani Umar Bala at the plenary on Thursday.
Presenting the motion, the lawmaker noted that the lingering crisis is snowballing and affecting the operations of the power distribution company for a long time.
Rep. Bala said, “With the control of 40% Equity Shares in the company by the federal government, the deepening board room crisis, which is not only snowballing into increasing poor performance by the DISCO but is also injurious to government, businesses, requires an urgent need for government to intervene in order to protect its stake and improve performance.”
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He noted that, whistleblowers last year alleged that the company was involved in grave misconduct by a top official, which include hiring of ghost workers, misappropriation and diversions.
The lawmaker added, “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.”
“The crisis is a result of what has been described as undue personalisation of board authority, abuse of due process and vested interests including accusations of underhand dealings and impropriety.
“In reaction to the allegations, a thorough investigation was instituted by the Managing Director but was interrupted and stalled by further allegations by some directors of plans by certain vested interest to cover up the misdeeds”.
The House adopted the motion and referred it to its Committee on Power.
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