I’m not afraid of the courts… be ready to face scrutiny - Fashola tells GenCos

Babatunde Fashola, minister of power, works and housing, says he is not afraid of law courts following a suit filed against the government by some power generating companies (GenCos).  

The GenCos had levelled accusations against the government regarding “special treatment” that allegedly favoured two power generating companies – Azura Power West Africa Limited and Accugas Limited.

April 16 has been fixed for hearing of the suit at a federal high court in Abuja.

Speaking with operators in Akwa Ibom on Monday, the minister asked the GenCos to be ready to face scrutiny in the court of public opinion.

According to him, while the GenCos have the right to file charges against the government, they should be ready to disclose hard facts on a number of issues including a “N701 billion payment assurance guarantee to pay their monthly power bills”.

“Lately, I have read reports that some Generation Companies (GenCos) (not Ibom Power) have gone to court, filing claims against the government,” he said.

“That is their right and their prerogative. It is better than self-help, and it is consistent with the rule of law, which underpins our democracy.

“While they seek refuge in a court of law, they must be ready to face scrutiny in the court of public opinion. The court of public opinion is a court of conscience and morality. In the court of public opinion, they must be ready to tell the citizens how they felt when other groups went to court to stop the implementation of tariffs approved by NERC in 2016.

“They must explain to this public court whether they went to court before government approved a N701 Billion payment Assurance Guarantee to pay their monthly power bills. They must disclose to this court that they owed debts, from the pre-Buhari era, because their income had reduced to less than 50 percent.

“They must disclose to this court that they now receive about 80 percent income and that this government is now paying them revenues collected from international customers from the Republics Benin, Niger and Togo, in dollars, as against the naira payment they used to receive.

“They must tell the court of public opinion that the reason for going to court is because government is making 100 percent payment to a new GenCo who has a different contract with a partial risk guarantee, which they do not have.

“They must also disclose to both courts that they held a meeting with government and tabled their demands, which government promised to look into one week before they went to court. They must, in good conscience, tell the two courts whether one week was enough time, to go to court and whether this action at the time when the sector is making progress does not suggest an intention to blackmail government and hold the citizens hostage.

“I am not afraid of the law courts, and will meet you there to vigorously defend our position.”

The minister also said that the GenCos in question had resorted to hurtful schemes in a bid to disrupt power supply.

“Let me say very clearly to all operators that I get reports of many of the clandestine meetings that some of them are holding with a view to disrupt supply for political capital,” he said.

“This is the essence of privatisation. If you bother to look up and around you, you will see solar panels on rooftops.

“The mini-grid regulations allow them to procure 1MW (MegaWatts) without licence. This is bigger than what many traditional generators supply. There is no law that compels them to take public power.

“I will close by imploring those that are truly ready to run the business they have acquired voluntarily to continue to do so with the assurance of government support and partnership.

“As for those who entered the business without understanding it, please brace up for hard work and help us rebuild this country.”