Actis inherits FCFA 25 billion lawsuit against AES-SONEL

The British firm that officially took over from the American Company, AES Corporation on May 23, will not only be managing electricity production, generation and distribution in Cameroon.

The global pan- emerging market private equity firm has inherited FCFA 25 billion litigation from AES-SONEL to grapple with.

Before ACTIS took over the sector, some Cameroonians and corporate bodies had urged the Central District Court of California in the US to stop AES-SONEL from selling its shares to ACTIS.

After failing to achieve their aim, the plaintiffs have updated the litigation roping-in ACTIS that is AES’s successor in Cameroon’s electricity management.

The plaintiff’s lawyer, Barrister Emanuel Nsahlai of Nsahlai Law firm in Los Angeles in the U.S, filed the case before Justice Philips Gutierrez.

The plaintiffs are made up of Cameroonian consumers including the association of Fishermen, the association of merchants in the electrical goods, the association of construction workers, the association of food traders and some individuals who have been victims of AES-SONEL epileptic power supply.

The defendants are the AES Corporation, a Delaware Corporation, AES SONEL and ACTIS.

The amended complaint indicates that the hearing of the case will take place in the District Court in Arlington, Virginia in the U.S. Among other issues, the plaintiffs accuse the electricity company of breach of contract, wrongful death, and intentional infliction of emotional distress and negligence.

They equally accuse the defendants of civil conspiracy, deceptive and unfair business practices.

They claim that such damages occurred as a result of power supply failures, short circuits and voltage fluctuations.

The Plaintiffs hold that such a situation led to numerous deaths, misery and regular power outrages and substantial economic losses since 2001. The plaintiffs support their claims with death certificates, paramedic report, and eyewitness and newspaper publications.

The motion accuses the electricity company of disrespect, condescending behaviour and acting with total impunity while making huge profits.

According to Barrister Nsahlai, the plaintiffs have suffered severe irreparable losses both economic and non economic. “They have lost love and their children. They have had decades of sweat and toil flush down the drain as AES SONEL pursued a policy of maximising profits and minimising investments needed to provide reliable electrical supply,” the lawyer states.

He further urges the court to award the plaintiffs compensatory and punitive damages of 50.000 US dollars (a circa FCFA 25 million).

The court has equally been called upon to grant the plaintiffs equitable relief, including, but not limited to, an injunction prohibiting further damages to these persons and their rights under the federal statutes and customary international law.

The plaintiffs also want the court to slam the costs of the suit including reasonable attorney’s fees, squarely on the shoulder of the defendants.

“Enter a judgment in favour of the plaintiffs and order defendants for specific performance of the contract with the Government of Cameroon” the lawyer urges.

The plaintiffs filed the case last March 10 after learning that the sale of the electricity company to ACTIS had been done last February.

Meanwhile ACTIS that has 60years of energy supply in 19 countries officially sealed the deal of taking over SONEL in a solemn ceremony in Yaounde on May 23.

Five agreements sanctioned the taking over ceremony chaired by the Minister of Water Resources and Energy, Basile Atangana Kouna and the Finance Minister, Alamine Ousmane Mey and the Chair of ACTIS, David Grylls.

Going by the agreements signed, the British firm takes over SONEL and its subsidiaries; the Kribi power Development Company, CPDC and the Dibamba power Development Company. The deal provides that ACTIS is taking over 56 percent of shares hitherto owned by AES_SONEL.

From this, ACTIS promises to give 5 percent to workers while the state of Cameroon maintains a hold on 44 percent shares.

ACTIS is taking over the energy sector when only about 800, 000 out of 20 million Cameroonians have access to electricity.

It was this reason that the Minister of Water Resources and Energy called on the British company to extend electricity to every nock and cranny of the country.

ACTIS is coming in at a time that the epileptic electricity supply has been the bane of progress in the country where consumers pay huge bills for little energy.

The Company is expected to turn things round and treat its customers like kings. ACTIS boss promised to make things work by continuing the investments envisaged by AES-SONEL.