MTN Fine: Senate on the Offensive

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MTN Fine: Senate on the Offensive

By Correspondent

In an apparent show of disaffection over the way in which the out-of-court settlement arrangement between the Federal Government and MTN is being conducted as it concerns the N1.04 trillion fine imposed on MTN, the Senate Committee on Communications, expressed sadness over the alleged shutting out of the Ministry of Communications Technology and the Nigeria Communications Commission (NCC) from the deal. In an investigative hearing, the committee expresses sadness that an account in the name of “recovery account” was opened for the N50 billion fine paid by MTN as part of the settlement. The committee, chaired by Senator Gilbert Nnaji, maintained that members of his committee were worried that a proposal initiated by the MTN for the reduction of the fine to N300 billion had been accepted by the Minister of Justice and Attorney General of the Federation, Abubakar Malami, without recourse to the Ministry of Justice and the NCC. It was the contention of the committee, that an initial 25 per cent reduction of the initial N1.04 trillion fine to N780 billion was on the order of the President Muhammadu Buhari. Going by a document displayed by the committee, it was revealed that the N50 billion already paid by MTN is part of the settlement deal. In the document, parties were said to have reached an agreement that the N50 billion paid in good faith and without prejudice by MTN Nigeria on February 24, 2016, so as to commence settlement negotiations will form part of the monetary components of the settlement in five equal and annual instalments between the date of execution of the agreement andDecember 31, 2020. The document further revealed that MTN Nigeria shall pay a total of N100 billion by electronic funds transfer to the Federal Recovery Account of the Central Bank of Nigeria (CBN). The document further argued that the said payment is expected to begin by December 31 of each subsequent year. It was also contained in the document that MTN would buy N80 billion worth of Nigeria’s foreign bonds.  The committee has however insisted that the Attorney General of the Federation must appear in person before it within two weeks to explain his actions. 

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