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Tag: MTN

  • MTN must pay fine in full, Reps insist

    MTN must pay fine in full, Reps insist

    The House of Representatives is insisting that Global System for Mobile communication (GSM) service provider, MTN Nigeria must pay the N780b fine slammed on it by the Nigerian Communications Commission (NCC).

    This is as the Minister of Justice and Attorney General of the Federation (AGF), Abubakar Malami and the Chief of Staff to the President, Abba Kyari have been invited to appear before the House next week to explain and justify their roles in the negotiation process.

    It was disclosed Wednesday that MTN had, in its proposal for settlement of the face-off with the Federal government planned to pay N300b only out of the N1.04 trillion that was later reduced to N780b.

    It proposed to pay N50b it described as ‘goodwill offer’ and another N100b in cash while the balance would be paid with complementary services (in kind).

    The service provider also proposed to be listed on the Nigeria Stock Exchange (NSE) as part of the settlement negotiation.

    The lawmakers said since it was an incontrovertible fact that MTN was found culpable of breaching Sections 19 and 20 of the NCC Act, it was in no position to dictate the terms of negotiation at it is currently doing.

    While condemning the exclusion of the National Assembly from the negotiation of the fine by the Federal government, the lawmakers regretted that NCC was also relegated to the background in the exercise.

    MTN was penalized by the regulatory body for failing to deactivate 5.2 million improperly registered SIM cards within a stipulated period which led to it being slammed with the administrative fines of N1.04 trillion

    At the resumed investigative hearing by House Committee on Communications, NCC’s Executive Vice Chairman, Prof Umar Dambatta said the position of the Commission was that MTN must pay the fine of N780b in full, even if in installmemts and not as it proposed.

    The lawmakers condemned the arrogant disposition of the service provider that having breached the Nigerian laws, it was in no position to dictate the terms of negotiation.

    The Saheed Fijabi-led Committee was at a loss why NCC was relegated to the background in the negotiation that was alegedly taken over by the Minister of Justice and Attorney General of the Federation (AGF), Abdullahi Malami and the Chief of Staff to the President, Abba Kyari.

    Saying that the time of impunity is over, Chairman of the Committee, Fijabi said, “We believe that NCC has not been allowed to take charge of the negotiation because it has been reduced to the background.

    “NCC did the fines, it should be allowed to take charge but that is not the case here, someone is even doing the reduction without your (NCC) input.

    “At the court, wasn’t the case between MTN and NCC? So, NCC ought to take the lead while others can provide support and advise.

    “It is not a hidden fact that MTN is fond of finding ways to circumvent our laws. MTN must pay because we all remember the Gulf of Mexico spill and how those found culpable paid fully for it.

    “It is even insulting that MTN is using listing on the Stock exchange as part of the negotiation. We must state it clearly that MTN is in no position to dictate the terms of negotiation in this case.”

     

  • Zuma moves to mend fences with Nigeria

    Zuma moves to mend fences with Nigeria

    South Africa’s testy relationship with Nigeria has come into sharp focus with President Jacob Zuma’s official two-day visit to the West African country which ends later on Wednesday.

    Zuma’s visit comes in the wake of the debacle surrounding South African telecommunications giant MTN which faces a multi-billion-dollar fine imposed by the Nigerian Communications Regulator.

    This is after MTN failed to meet a deadline to disconnect 5.1 million unregistered subscribers to enable the Nigerian authorities to improve security.

    The initial fine was reduced by 25 per cent to 3.9 billion dollars in December.

    President Muhammadu Buhari on Tuesday fuelled the inferno when he accused MTN of increasing the Boko Haram threat in north-east Nigeria by failing to disconnect unregistered users.

    Buhari told a joint news conference that the concern of the federal government “was basically on the security, not the fine imposed on MTN”.

    In an interesting twist, the Nigerian media is speculating that Pretoria has set its sights on Boko Haram, and will be helping Abuja in its efforts to combat the Islamist militant group.

    According to the report, Nigeria and South Africa are to collaborate on war on terror.

    This followed a press briefing delivered by Nigerian Defence Minister Dan Ali after a meeting with his South African counterpart Nosiviwe Mapisa-Nquakula on Tuesday.

    However, political analyst Simon Allison suggests that any collaboration between Africa’s two power houses is fraught with political, diplomatic, legal and financial difficulties that would make it very difficult to implement.

    Writing in the Johannesburg-based Daily Maverick, Allison said there is a very low chance South African special forces will be involved directly in fighting against Boko Haram.
    “In other words, no matter what the Nigerian media might be saying, South Africa is not joining a war.

    Even a deployment of South African special forces as trainers seems unlikely, given the personnel and resource constraints under which the South African National Defence Force is operating,”he added.

    Zuma, who is accompanied by 30 business leaders and seven Cabinet Ministers, said South Africa and Nigeria have signed over 30 bilateral agreements and memoranda of understanding in areas including trade, industry, security and immigration.

    Zuma used his platform to note that from the mid-1970s‚ Nigeria hosted some of the exiled freedom fighters from South Africa‚ with numbers increasing after the Soweto Student Uprising in 1976.

    He said the 40th anniversary of that uprising is being commemorated in South Africa as Nigeria marks 40 years since, “the passing of one of the illustrious sons of Nigeria and Africa‚ General Murtala Mohammed”.

    “His tenure only lasted 200 days but it had a profound impact‚ particularly on the struggle against apartheid and colonialism in Southern Africa‚” said Zuma.

     

  • MTN contributed to high Boko Haram casualties- Buhari

    MTN contributed to high Boko Haram casualties- Buhari

    President Muhammadu Buhari on Tuesday said that the slow registration of Nigerians on the MTN lines by the service providers contributed to  the  killing of at least 10, 000 innocent Nigerians by the insurgents, Boko Haram.

    He made the remark during a joint press conference after holding closed door meeting with South African President, Jacob Zuma at the Presidential Villa, Abuja.

    According to him, the concern of the Federal Government was purely security and not the fine imposed on MTN.

    Answering questions on Tuesday, Buhari said: “This is the first time I will be personally as a president  making a public comment about it. The concern of the federal government is basically on the security and not the fine imposed on MTN.

    “You know how the unregistered GSM are being used by terrorists. And between 2009 and today, at least 10,000 Nigerians were killed by Boko Haram.

    “That was why NCC asked MTN, Glo and the rest of them to register GSM. Unfortunately, MTN was very, very slow and contributed to the casualties,” he added.

  • MTN: No plans for Nigeria listing

    MOBILE giant MTN yesterday denied reports linking it with plans to list in Nigeria.

    Last week, the MTN Group held a media briefing to announce its financial results for the year ended 31 December, 2015 which showed that profits had plunged 51per cent  as Africa’s largest mobile operator battled poor economic conditions in South Africa, regulatory hurdles, a hefty fine in its largest market, Nigeria, and changes in its top management team.

    Subsequent reports following the media briefing suggested that the carrier had hinted at a secondary listing in Nigeria, but, the Group spokesperson, Chris Maroleng, in a statement said, this was “grossly inaccurate”.

    Maroleng said MTN was particularly perturbed that despite the extensive engagements in the day, the media coverage around MTN results had been characterised by grossly inaccurate media reports and misinformation.

    He said: “The correct comment, as expressed by the Executive Chairman, is that MTN could consider listing the local operation, MTN Nigeria, not the Group. As a result, reports that MTN is considering a secondary listing in Nigeria are misleading,” Maruleng said.

    Maroleng further said the listing of MTN Nigeria remains a consideration, not a planned listing, as suggested in some of the media reports.

    Maroleng also said reports that MTN had $22 billion stuck in Nigeria were worrying.

    “This is completely inaccurate. MTN Nigeria has the cash equivalent of approximately R24.6 billion with some R26.2 billion in debt implying a net debt position of R1.7 billion,” Maroleng said.

  • MTN sets aside $600m for ‘fine’ as profits dip

    MTN sets aside $600m for ‘fine’ as profits dip

    • Mulls Nigeria listing
    • To cut dividend

    South Africa’s MTN Group yesterday released its result for last year, posting huge decline in its profits and setting aside 9.3 billion rand ($600 million) to cover the potential settlement of the outstanding  N730 billion of the N780billion fine imposed on it by the Nigeria Communications Commission (NCC) over subscriber identity module (SIM) card registration rule breaches. The telco had last week, made a down payment of N50 billion in “good faith” to the Federal Government.

    Its Group Executive Chairman Phuthuma Nhleko yesterday also said the telco may cross-list its shares on the floor of the Nigeria Stock Exchange (NSE) once its dispute with its regulator in the country is settled.

    Though full details of the result were kept under wraps, the telco was said to have posted a more than 50 per cent dip in its annual profit.

    Weighed down heavily by economic realities in Nigeria, its cash cow, the telco said it would cut its full-year dividend to a minimum of 7 rand this year due to uncertainty surrounding the payment of the fine and the policy of the Central Bank of Nigeria (CBN) that has led to “dollar scarcity.”

    It however said while weak economic conditions and heightened regulatory pressure impacted performance, it continues to invest in Nigeria for the long term

    In a statement, the carrier lamented that the Nigerian operation in particular experienced a very challenging year. Weak economic conditions and the limited availability of dollars contributed to a lower-than-expected performance. Heightened regulatory pressure also severely impacted  its operation in the country. This was particularly evident in the suspension of regulatory services and the subscriber registration requirements, which meant that MTN had to disconnect 6.7 million subscribers. MTN Nigeria is working hard to complete the registration process in line with the NCC’s requirements.

  • MTN set aside $600m for Nigerian fine

    South Africa’s MTN Group has set aside around $600 million to cover the potential settlement of a fine in Nigeria, the firm said on Thursday, as it posted a more than 50 percent drop in annual profit.

    MTN is in talks with Nigerian authorities to reduce a $3.9 billion fine imposed last year for failing to cut off unregistered SIM card users, Reuters reported.

    It said headline earnings per share (EPS) came in at 746 cents in the year to end-December compared with 1,536 cents a year earlier.

    Headline EPS is the main profit measure in South Africa that strips out certain one-off items.

     

  • Fed Govt, MTN begin fresh talks over $3.9b fine

    Nigeria will start new talks with South African mobile phone operator MTN “very soon” to settle a dispute over a $3.9 billion fine but the final decision rests with President Muhammadu Buhari, Communications Technology Minister, Adebayo Shittu has said.

    Last week, MTN said it had withdrawn a lawsuit against Nigeria over the fine, which originally stood at $5.2 billion, and aimed for a settlement. MTN was fined for failing to disconnect unregistered SIM users and has paid $250 million toward a settlement.

    “It is (now) for government to meet with them and conclude negotiations,”  Shittu told Reuters late yesterday, the first reaction from the ministry.

    MTN shares, which had been down 2.8 per cent yesterday, trimmed losses after the comments although they were still down 1.8 per cent by 1045 GMT (05:45 a.m. EST).

    Shittu said President Buhari would make the final decision on any settlement over the penalty. “It is within his power and jurisdiction to do that if he feels that it would be in the interests of Nigeria to so do,” he said.

    The issue could come up when South African President Jacob Zuma visits Nigeria next week for talks with Buhari.

    Nigeria has been trying to halt the widespread use of unregistered SIM cards, fearing they are being used for criminal activity, including by the militant Islamist group Boko Haram.

  • $3.9b fine: Nigeria to hold fresh talks with MTN

    $3.9b fine: Nigeria to hold fresh talks with MTN

    The Federal Government will start new talks with South African mobile phone operator, MTN “very soon” to settle a dispute over a $3.9 billion fine, but the final decision rests with President Muhammadu Buhari, the communications minister said.

    “It is (now) for government to meet with them and conclude negotiations,” Adebayo Shittu told Reuters on Wednesday.

    MTN said last week it had withdrawn a lawsuit against Nigeria over the original $5.2 billion fine.

    The telecommunications firm was fined for failing to disconnect unregistered SIM users and has paid $250 million towards a settlement of the matter.

  • N780b fine: NCC confirms receipt of N50b from MTN

    N780b fine: NCC confirms receipt of N50b from MTN

    The Nigerian Communications Commission (NCC) yesterday confirmed receipt of N50billion from MTN as part-payment of the N780billion fine it imposed on the telco last year over subscriber identity module (SIM) card registration rule violations.

    A statement endorsed by its Director, Public Affairs, Tony Ojobo also confirmed the withdrawal of the legal action instituted against the regulator by the telco.

    ”NCC wishes to affirm Federal Government’s receipt of the sum of N50billion towards settlement of the fine imposed on MTN Nigeria Communications Ltd by the Commission, and its withdrawal of Suit No FHC/1923/2015 – MTN Vs. NCC & HAGF.

    “The official information to the Commission to that effect, was received from the Office of the Attorney General of the Federation and Minister of Justice, today, 29th February, 2016.

    “The amount is an unconditional good faith payment, on the basis that this sum would be applied towards eventual settlement agreement for payment of the fine imposed by the Commission, where the ongoing negotiations between the Federal Government and the company reach a final resolution,” Ojobo explained.

    He said the Federal Government’s team for the negotiations is being led by the Attorney General of the Federation, and Minister of Justice, Abubakar Malami, SAN, while MTN team is led former U.S Attorney General, and Head of Covington & Burling LLP, Washington DC, Mr Eric H. Holder, Jr.

    According to him, the receipt of the money and withdrawal of the suit is without prejudice to the final decision of government on the terms of payment being proposed by MTN, adding that on the basis of the out-of-court settlement, the Federal Government team, is expected to deliberate on the merits and demerits of the terms of payment of the fine “imposed on MTN by the Commission for its failure to deactivate invalid SIM cards as directed by the Commission, thereby contravening the provisions of the regulation on SIM card registration.”

    NCC had in October last year imposed a N1.4trillion fine on MTN over its failure to deactivate some 5.2million pre-registered SIM cards active on its network. After several appeals by MTN Group, the fine was reduced to N780billion.

    But in a strange twist to the tale, the telco took its regulator to court.

    The order to deactivate irregularly registered SIM cards came on the heels of increased security concerns in the Northeast where the Boko Haram insurgents went on rampage and kidnap-for-ransom by unscrupulous elements who hid under the anonymity provided by pre-registered SIM cards to negotiate terms of settlement with relative of their captives.

  • NCC confirms MTN payment of N50b

    The Nigerian Communications Commission on Monday confirmed Federal Government’s receipt of the N50 billion from MTN Nigeria Communications Limited towards settlement of the fine imposed on the telecommunications firm.

    The commission also confirmed that MTN has withdrawn its suit from the court.

    A statement signed by NCC’s Director of Public Affairs, Mr. Tony Ojobo, said the commission received official information on the two developments from the Office of the Attorney General of the Federation and Minister of Justice respectively on Monday.

    The statement reads; “The amount is an unconditional good faith payment, on the basis that this sum would be applied towards eventual settlement agreement for payment of the fine imposed by the commission.

    “The Federal Government’s team for the negotiations is being led by the Honourable Attorney General of the Federation, and Minister of Justice, Abubakar Malami (SAN), while MTN team is led by former U.S Attorney General, and Head of Covington & Burling LLP, Washington DC, Mr. Eric H. Holder, Jr.

    “The receipt of the amount and withdrawal of the suit is without prejudice to the final decision of government on the terms of payment being proposed by the company.

    “On the basis of out of court settlement, the Federal Government team, is expected to deliberate on the merits and demerits of the terms of payment of the fine imposed on MTN by the commission for its failure to deactivate invalid SIM Cards as directed by the commission, thereby contravening the provisions of the regulation on SIM Card Registration.”