N1.04trn MTN fine: FG confirms approval of N330bn as final settlement

Federal Government on Monday confirmed the amicable resolution of the charges levelled against South African Telecoms company, MTN over non-registration of 5.2 million lines, with the payment of N330 billion.

Recall that the Accountant General of the Federation (AGF) had earlier directed MTN to pay the sum of N50 billion into a special account domiciled with Central Bank of Nigeria (CBN).

Sunny Enocho, Permanent Secretary of Federal Ministry of Communications disclosed this at the investigative public hearing on the recent reduction of penalty imposed on MTN by Nigerian Communication Commission (NCC), initaited by House Committee on Communications chaired by Saheed Fijabi (APC-Oyo).

He explained that the government’s approved the amount following series of consultation and adoption of the recommendations of the inter-ministerial chaired by Abubakar Malami, Minister of Justice and Attorney General of the Federation (AGF).

Enocho added that the Ministry had earlier notified the House that the negotiation between Federal Government and MTN would not be determined by the investigation initiated by the House.

“I am in position to confirm to the honourable Committee that Government has approved the sum of N330 billion as full and final settlement imposed as fine by the NCC.

“This was pursuant to series of procedural and other review including the constitution of inter-ministerial committee under the auspices of the AGF since the case went to court and the court decision to go into negotiation,” Enocho told the Committee.

Meanwhile, House Committee on Communications on Monday issued a seven day ultimatum to Abubakar Malami, Minister of Justice and Attorney General of the Federation (AGF) and Adebayo Shittu, Minister of Communications to appear before it to give update on the N330 billion paid by MTN.

Fijabi, who frowned at the disregard for resolution of the House, explained that sections 80, 81 and 88 of the 1999 Constitution (as amended) empowered the House to conduct investigation on all matters incidental to the reduction of the penalty on MTN Nigeria Limited by the Commission.

He however expressed displeasure over the unilateral decision of the “Commission to have reduced the initial penalty of about N1.04 trillion to about N780 billion, thereby constraining statutory revenue accretion to the Consolidated Revenue Fund of the Federation,” Fijabi noted.

The lawmakers who expressed dismay over the process leading to further downward review of the N780 billion which the House had opposed, also frowned at the flagrant abuse of office by the Executive bodies.

“This Committee has been evaluating numerous documentary and oral submissions made to it by concerned Nigerians on the subject matter, when it learnt through the media during the week just ended, that same (N780 billion) had been further reduced to about N330 billion.

“This Committee requires to be fully availed of all documentary explanations ex ante, regarding this new development. This decision had generated immense negative perception in the last 72 hours – a major concern with respect to the dictates of section 7, First Schedule, Nigerian Communication Act, 2003.

“Nigerians had expressed immense worry over this development. The public had inundated this Committee with petitions and terse outburst, regarding the basis for NCC’s further unilateral action. Nigerians are at loss on why NCC was in a hurry and insensitive in awaiting the outcome of the ongoing investigation on the subject matter by the Federal House of Representatives.

“Critical stakeholders in the Nigerian economy express deep concern over this act that present a violation of the Constitution of the Federal Republic of Nigeria, 1999, the Nigerian Communication Act, 2003 and the Telephone Subscribers Registration, Regulation 2011.

“Most Nigerians feel that this situation carries serious implications of moral hazards, contagion and domino effects. Economic agents say that it presents a damaging blow to the Fiscal and monetary stability of the Nigerian Federation. It utter bewilderment, many wonder whether any government or any of its officials, could proceed to champion a diminution of the Federation’s Fiscal capacity as if it does not matter that a State should sink in recession on account of  establishment-induced illiquidity.

“Nigerians worry at NCC’s current position of high self-error where it’s earlier penalty of about N1.04 trillion is being taunted as having been reduced to about N330 billion; a little above 30%? Nigerians wonder whether your margin of error could have been as high as 70%?”

Some of the members of the Committee including: Johnson Agbonayinma (PDP-Edo); Nicholas Ossai (PDP-Delta) also expressed displeasure over the high-handedness of the Attorney General of the Federation who allegedly took over the negotiations and excluding the NCC.”

 

KEHINDE AKINTOLA