Lagos Moves To Stop Sale Of PHCN Properties

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The Lagos State Government says it will seek redress in court to set aside any sale of the Power Holding Company of Nigeria, PHCN, assets by the Bureau of Public Enterprise as a result of the illegal deduction of N16 billion from its coffers due to the Independent Power Project.

The government said it went to the High Court in April for protection by injunction, including orders freezing all accounts maintained by PHCN with First Bank of Nigeria Plc and Zenith Bank Plc.

The government in advertorial urged members of the public to beware of buying the PHCN assets which the BPE intended to put on sale as it would seek redress in court to stop it.

“Members of the public are hereby notified of the dispute between the Lagos State Government (“LASG”/or “ the Claimant”) and the Power Holding Company of Nigeria Plc (“PHCN”) involving claims by LASG of sums in excess of N16 Billion.

“Towards securing its claims (in part) against PHCN, LASG approached the High Court of Lagos State in Suit No. M/376/2012 on 26th April 2012 for protection by injunction, including orders freezing all accounts maintained by PHCN with First Bank of Nigeria Plc and Zenith Bank Plc. These orders were made on 15th June 2012 and subsist until the conclusion of arbitral proceedings pending between LASG and PHCN,” said the statement signed by Mr. Olasupo Shasore, Counsel to the Lagos State Government

The advertorial added that notwithstanding the above, and despite several demands for adequate security for the above mentioned claim from the Bureau of Public Enterprises co-ordinating the sale and /or disposal of the assets of PHCN which were ignored, “we are aware that the Bureau of Public Enterprises (“BPE”) and other agents are resolved in proceeding with the   disposal of the assets of PHCN in furtherance of its privatisation exercise.”

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According to the statement, notice “is hereby given to the general public, particularly prospective buyers, investors and their financiers that Lagos State Government reserves its right to apply to court to enforce any award or judgment sum as may be made in its favour against PHCN.

“Take further notice that such enforcement procedure will include an application to court to   set aside any sale, transfer or disposal of PHCN’s assets for the purposes of satisfying any award or judgment sum in favour of LASG.”

“The general public, prospective buyers, investors and their financiers are therefore advised to take notice of the foregoing   in their dealings with the BPE or its agents in relation to PHCN’s assets as LASG will not hesitate to seek legal redress without recourse,” it added.

Governor Babatunde Fashola had on Tuesday lamented the illegal deduction of N16 billion from the state allocation by the Federal Government for power supply which the state never utilised.

Fashola, who spoke when the Chairman of the Senate Committee on Privatization, Gbenga Obadara led other members of the Committee on a courtesy call to the State House, Alausa, Ikeja, frowned at the fact that the 52 megawatts under its Independent Power Project which the state generated during the tenure of his predecessor, Asiwaju Bola Ahmed Tinubu was added to the national grid and was not utilised by the state alone but shared amongst neighbouring states.

—Kazeem Ugbodaga

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