…Hires 15 SANs in suite against FG as AGF not represented in court
Contrary to speculations that the weight of the recent sanctions, claims and counterclaims bordering on alleged breaches on extant laws and regulations guiding rule of engagements on Certificate of Capital Importation (CCI) and import duties discrepancies between MTN Nigeria and federal government will weaken its planned listing on the Nigerian Stock Exchange (NSE), the company has said it is still considering the deal after all.
This is as the telecoms suit against the federal government, marked FHC/L/CS/1475/2018, MTN is seeking a declaration of the court that it is “not liable to refund $8,134,312,397.63 to the coffers of the 1st defendant (CBN) premised on the decisions reached in the 1st defendant’s letter of 28/8/2018.”
Already, the Federal High Court in Lagos has fixed December 4, 2018, for hearing in the suit to challenge the $8,134,312,397.63 being demanded by the Central Bank of Nigeria over the alleged forex remittances.
At the Tuesday proceedings in the case, MTN was represented by Chief Wole Olanipekun (SAN), who led 14 other lawyers, including Prof Fabian Ajogwu (SAN), Mr Damian Dodo (SAN), Mr Adeniyi Adegbonmire (SAN), and Mr Bode Olanipekun (SAN).
On the CBN legal team were Messrs Seyi Sowemimo (SAN) and Ademola Akerele (SAN).
However, the Attorney General of the Federation, Mr Abubakar Malami (SAN), who was joined as the 2nd defendant in the suit was absent and was not represented in court.
But while adjourning the suit till December 4, 2018, for the hearing of all pending applications, Justice Saliu Saidu directed that hearing notice should be served on the Attorney General of the Federation.
Details of the telecoms giant prayers showed that MTN Nigeria is urging the court to declare that that “the 1st defendant’s decision in its letter of August 28, 2018 with Ref No GBD/GOV/COM/DGF/118/121 addressed to the plaintiff and titled, ‘Investigation into the remittance of foreign exchange on the basis of the illegal capital importation certificates issued to MTN Nigeria Communications Limited’ was reached in breach of the plaintiff’s right to fair hearing.”
Whereas the court processes deepens which was in difference with popular views considering recent comments of the CBN Governor that parties are closing in on amicable resolution, the Chief Executive Officer and President of the MTN Group, Rob Shuter, had on the third-quarter report of the telecom published Monday, averred that going on with the listing is uder serious shocks by accusations by the Central Bank of Nigeria and the Attorney General of the Federation.
According to him, “MTN Nigeria’s plans to list have been challenged by the recent Central Bank of Nigeria and the Attorney General of the Federal Republic of Nigeria’s matters; however, MTN remains committed to the listing in Nigeria and work continues in this regard.
“In the quarter, the group engaged extensively with authorities in Nigeria to deal with the matters they raised. Across our markets, we continued to invest in our networks, and now have the leading network net promoter score in 10 of our markets.”
In view of the back and forth movement of the stock in Johannesburg Exchange, MTN group has therefore cautioned its shareholders to continue to exercise caution when dealing in the company’s securities until a further announcement would be made.
Business Hilights recalls that whereas the company is yet to pay off tranches of a fine imposed on it by the telecoms regulator, the Nigerian Communications Commission (NCC) over breaches in SIM deactivation some years ago, earlier in August this year, the Nigerian apex bank further sanctioned it to refund the sum of $8.1bn it claimed the firm repatriated illegally between 2007 and 2015.
Besides, the Attorney General of the Federation (AGF) on the other hand, raised another issue bordering on import duties discrepancies also on the same telecoms.
Still on the CCI, the Central Bank of Nigeria (CBN) also imposed a total fine of N5.87bn on four banks – Standard Chartered, Stanbic IBTC Bank, Citibank and Diamond Bank – for allegedly remitting dividends with irregular Certificates of Capital Importation on behalf of MTN Nigeria.
CBN had already debited the accounts of the involved banks to the tune of N5.87bn upon the banks have continued to maintain a no-wrong doing submission.
But in the height of the entire crisis, the telecom giant had continued to assure and pledge total commitment to Nigeria, saying it remained resolute that “the company has not committed any offenses and will continue to defend its position vigorously.”
