Court restrains EKO Disco from operating illegal parallel account under CAPMI

Hammer & gavel.

Hammer & gavel.

25 August 2015, Sweetcrude, Houston – A Federal High Court sitting in Lagos today restrained the Eko Electricity Distribution Company, EKEDC, from operating a parallel account under the Credit Advance Payment Meters Implementation, CAPMI, agreement with Moman System Nigeria Limited.

Justice Mohammed Yunus of the Federal High Court in Lagos gave the order in a ruling on an ex-parte application filed by a Lagos lawyer, Momas System Nigeria Ltd., against EKEDC operating a parallel account under the CAPMI meter installation scheme with Ecobank.

The order which was carried out through exporter motion stopped EKEDC from operating a meter account number 2562128948 which was domiciled with Ecobank plc pending the hearing and determination of the motion on notice.

The court directed Eko distribution Company to direct all its electricity customers in the area exclusively assigned to MOMAS to pay fees for the supply and installation of meters into the Escrow CAPMI n]bank account controlled jointly by EKEDC and MOMAS .

MOMAS maintained a joint account with EKO Disco as signatories pursuant to Credit Advance Payment (CAPMI) scheme.

MOMAS said that the company was contracted to supply and install various meter to six business units under EKO Disco which comprises of Ijora, Lekki, Island, Apapa, Festac and Surulere under the CAPMI schemes.

MOMAS said that contrary to their agreement the distribution company operates another parallel account without informing MOMAS who is always a signatory to the joint meter account with EKO Disco.

According to Momas, rather than consider the plight and agony of momas in installing of the meter, EKEDC contracted the installation to company who imports pre-paid meters into the country.

“Act was a breach of contract and the guidelines on CAPMI committed by EKEDC, we suffered technical crisis including pile up of unsold meters and spare parts.

“The effect has caused inability to service our loan facilities obtained from banks in astronomical pile up of interest.

“This has also affected the company from paying his workers and contractors. The frustration of the contract with his foreign technical partner and payment of high repudiation cost paid to the foreign partner which has denied number of benefited of the agreement with transfer technology.

The company said that Bank of Industry has written to the Ministry of Power on the huge debt owed by Momas which caused imminent collapse of the bank’s investment and business.

About the Author