The Federal Government, yesterday, said it would neither be cowed nor threatened by MTN’s court action against the N1.4trn fine which was later reduced to N780 billion, insisting that the telecommunications company risks another fine if it fails to pay on deadline.
Minister of Communications, Mr Adebayo Shittu, made the statement yesterday in reaction to the suit instituted by the telecom operator at a Lagos High Court, weekend.
The minister, who spoke through his Special Assistant on Media, Mr. Victor Oluwadamilare, however, admitted that MTN had the right to seek court’s interpretation if it feels unsatisfied with the action of the regulator but made it clear that nothing would stop the government from imposing additional fine on the operator, at the expiration of the deadline.
According to the minister, “it is the right of MTN to approach the court but there was an infraction, which MTN admitted to have committed before it pleaded for leniency that led to the reduction of the fine from N1.4 trillion to N780 billion and the subsequent December 31, 2015 deadline to pay.
“If it has decided to go to court, it is still within the ambit of the law. I will not intervene, since they have gone to court, we will allow the court to decide if it is right for MTN to commit those infractions and breach the laws of the land.”
He, however, said that “it is unwise for MTN to go to court after the Federal Government had magnanimously reduced the fine. It will surely be fined for violating the rule at the expiration of the deadline, should it fail to pay the initial fine.”
Why we are in court —MTN
Meanwhile, MTN, yesterday, also insisted that its action was induced by commitment and belief in the long term sustainability of its business.
According to the company’s Human Resources & Corporate Services Executive, Amina Oyagbola, “the N780 billion fine has potentially dire consequences for the company, its employees, partners, stakeholders as well as the entire Nigerian telecommunications industry.
Being a significant contributor in Nigeria, MTN has an obligation to protect the interests of its ecosystem of millions of Nigerians who are directly and indirectly affected by its business operations and continuity.
According to Oyagbola, “the decision to seek judicial determination was reached after careful consideration of all factors, including extensive attempts at a sustainable resolution. It is important to state that seeking judicial determination was a last resort. We hold the Nigerian Government, its national objectives, laws and regulations in the highest regard.”
She, however, added that notwithstanding the action, the company will continue to engage with the Nigerian authorities in an effort to reach an amicable resolution in the interest of all stakeholders.
The NCC sanctioned MTN for refusing to remove over 5.1 million unregistered telephone subscribers from its network.
The regulator fined the telecoms operator N1.04 trillion, but later reduced it by 25 per cent after the intervention of President Muhammadu Buhari, amid pressure and negotiations from the company’s parent body in South Africa.
The NCC also reviewed the deadline from November 16 to December 31, 2015.
Ahead of that date, the MTN Group, last Thursday, said in a statement from Johannesburg, South Africa, that it was taking legal action over the matter and subsequently filed the suit at the weekend, lining up about six Senior Advocates of Nigeria, SANs.
According to the firm, since its previous advice to its shareholders on December 4, 2015 that all factors relating to the sanctions were thoroughly and carefully considered, including a review of the circumstances that led to the fine and subsequent reduction by NCC, there were enough grounds upon which to challenge the fine in court.
Claiming to act on legal advice, MTN queried the manner the fine was imposed, describing it as “not in accordance with the NCC’s powers Click to signup for FREE news updates, latest information and hottest gists everyday
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Exactly! MTN initially admitted to flouting the law when it negotiated reduction in the fine. They should understand that would hurt then as well. Unfortunately, they'd still pay the fine and risk loosing their business to a worthy competitor.
ReplyDeleteThey might get a court injunction to prevent NCC/FGN until the outcome of the case...could last a couple of months to years.
DeleteCourt injunction? Yes, from judges that sell injunctions for big sums. You can break the law of the land, admit to the fact that you have broken the law, but then buy a court injunction to avoid paying the penalty!
DeleteBcus its Nigeria, if it wer 2b other countries will dr go to court? How about insecurity mtn put us into? How many lives lost bcus of dr greed & stupidity, dr must pay or bear d consequencies, we have other better service providers.
ReplyDeleteMTN Nigeria cannot afford the fine, it's too much.
ReplyDeleteDon't let us frustrate them out the country. Ghana is waiting for the outcome of thisfine so as have justification for imposing huge fine on GLO.
Where is BP now in Nigeria. We should not be sentimental rather be objective.
ReplyDeleteMTN tried to negotiate with FG/NCC but here we are. Let's wait for the outcome of the court.
They should pay joor, If it wasa Nigerian company in South Africa will they be speaking this dogo n turenci with us? Next should be DSTV please. Enough is Enough, it is only in Nigeria that our laws favour outsiders more than our indegenous companies. Abeg they have the money, let them pay. They rip us off real bad. i ported to glo because of MTN shylock business method. Okay look at Blackberry 10 subscription, Glo still give you unlimited access for just 1,200 or 1,500 in a month but with MTN for same blackberry 10 subscription, 3,000 will not take you beyond 2 weeks if you are a moderate user. Abeg let them go, i want their license jare. :d
ReplyDeleteTru talk bro.
ReplyDeleteMTN is being misadvised by some unscrupulous lawyers whose interest is what they stand to gain. Where is the corporate governance in MTN? I guess they were drunk when they sought for concessions or how do we explain the sudden twist.
ReplyDeleteThe government must take this as an affront and impose additional fine for their lack of integrity. It is obvious that MTN is one of the notorious corporate entities thrives in the impunity of the previous regime.
Did you ask where BP is in Nigeria? I will tell you: BP Nigeria Ltd became AP Limited, which eventually became Forte Oil Ltd. Forte Oil is still a foremost petroleum products marketer in Nigeria. The other part of BP in Nigeria was their 20% holding in what used to be Shell-BP - the exploration and production company. When BP's interests in Nigeria were nationalised, it became SPDC (Shell Petroleum Development Company Nigeria Ltd). The company is still very much around - without BP. Years after BP was sent packing, the company returned to Nigeria in a joint venture relationship with Statoil.
ReplyDeleteNigeria cannot be blackmailed by any foreign company or its agents that choose to break the laws. All those writing about foreign investors running away because of the MTN fine are just mercenaries - they think blackmail would arm-twist the Nigerian government. Whoever does not want to invest should take his money elsewhere. Is Dangote not a Nigerian?
I hope your question has been answered.