July 24, (THEWILL) – A few weeks after THEWILL published a story that the reign of one of Nigeria’s corporate power couple and socialites, Victor and Funke Osibodu, might have come to an end, what with having experienced a few devastating losses from the corporate sector, some recent developments appear to show that the Osibodus may not be willing to go down without a fight.
It would be recalled that Funke Osibodu was kicked out of the Benin Electricity Distribution Company (BEDC) by the Federal Government for underperformance. Vigeo Power Limited, the company she runs with her husband as Chairman and she as Chief Executive Officer, owns BEDC.
Besides BEDC, other distribution companies taken over by the federal government were the electricity distribution companies of Kano and Kaduna. Like Kano and Kaduna, BEDC was considered to be technically incapacitated and financial insolvent after its loan facilities from Fidelity Bank became moribund, landing them in trouble with the bank. The Boards of the three companies were dissolved and replaced.
With the Osibodu-led Benin DISCO, KC Akuma was appointed Chairman while Adeola Ijose and Charles Onwere were appointed members of the board.
Also, the Bureau of Public Enterprises (BPE) nominated Yomi Adeyemi as an independent director to represent the government’s 40 per cent interest in the BEDC during the transition. But the Osibodus are not willing to just sit back and allow the Federal Government to take over their business. They are fighting back. First, they got the Federal High Court in Abuja to issue an order restraining Fidelity Bank Plc and other co-defendants from taking over BEDC, pending the hearing and determination of the motion on notice dated July 8, 2022. The other defendants are the Nigerian Electricity Regulatory Commission (NERC), the Corporate Affairs Commission (CAC), the Bureau of Public Enterprises (BPE) and the Nigeria Police Force (NPF).
Despite the order, the defendants invaded the premises of BEDC office in Benin and broke into the office of the Managing Director and the board room bragging of government protection. This prompted the management of BEDC to issue a press statement explaining that there was no contractual, statutory or regulatory basis for the takeover and appointments.
Not done, they have now dragged BPE to a United Kingdom arbitration to challenge the takeover of BEDC by Fidelity Bank Plc. Sources reveal that Cherie Blair, the wife of Tony Blair, UK’s ex-Prime Minister, who is the Chair of Omnia Strategy LLP and Bode Olanipekun of Wole Olanipekun and Co are leading BEDC’s legal team.
An Omnia Strategy LLP document addressed to the Director-General, BPE, Alex Okoh, stated that the bureau’s improper action had VPL’s commercial interests and reputation to suffer through the forceful takeover of BEDC.
The document, dated July 14, 2022 and signed by Cherie and Olanipekun read in part, “Omnia Strategy LLP and Wole Olanipekun & Co are instructed on behalf of Vigeo Power Limited. Our client notes that BPE’s abuse of state power through the improper and actionable collusion with Fidelity Bank, together with its arrogation to itself, of powers which have no contractual, regulatory or statutory basis, is consistent with the persistent hostile attitude displayed by instrumentalities of the FGN to our client and other investors in the sector since the privatisation of the Power Holding Company of Nigeria’s successor companies.
“It is in this context that we notify you of the existence of a dispute, pursuant to Clause 16.2, and hereby nominate Dr. Echefu Ukattah as our authorised representative. We request that you also nominate one of your directors or other senior representatives as your authorised representative, such that VPL’s authorised representative and BPE’s authorised representative shall meet within 10 days of this letter – being July 24, 2022 – to resolve the dispute; failing which VPL will be left with little choice but to commence international arbitration proceedings and claim damages for all loss suffered by our client as a result of BPE’s breach of its obligations, as well as all of VPL’s other losses occasioned by various FGN state actors since our client acquired 60 per cent interest in BEDC.”
Hopefully the matter is resolved at home and not become an international arbitration case.
Ivory Ukonu is a versatile journalist with many years of experience, with entertainment and society reporting as her area of core competence.
