Senate queries FG’s move to reduce MTN’s fine from $8.1billion to $800m 

The Senate has raised questions against attempt by the Federal Government to reduce the $8.1 billion fine imposed on the communication giant, MTN Nigeria, to $800 million.

The upper chamber said that the planned reduction of the fine is a matter of interest to it.

It noted that though it was not particularly against whatever the government would want to do with the MTN fine, it should be intimated on why the reduction became necessary.

The Senate also said that how the percentage of reduction from $8.1 billion to $800 million was arrived at is of interest to it.

The upper chamber said that it is equally interested in knowing what informed the penalty of $8.1 billion in the first instance.

The Central Bank of Nigeria had in a recent statement by its governor, Godwin Emefiele, hinted that it would reduce the amount it has ordered MTN Nigeria to repatriate.

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While addressing reporters in London, Emefiele said new documents provided by the telecom company would help to reduce the size of the claim.

“I don’t think it will be staying at $8.1 bn. I want to believe that the figure will reduce. Whether it will be dropped completely, I honestly cannot say at this time, The central bank will be examining these, then it will be escalated up to my level,” Emefiele had said.

The Senate in 2017 adopted a resolution largely exonerating MTN of alleged illegal repatriation $14 billion out of the country.

Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Rafiu Adebayo Ibrahim, told reporters on Tuesday in Abuja that he was shocked when he was contacted that the CBN failed to implement Senate resolutions before conducting another investigation into the alleged infraction by MTN.

Ibrahim said that his committee would immediately ask for CBN report on the matter to be batter informed.

He said that the only way Nigerians would know what transpired between the CBN and MTN on the $8.1 billion fine was through a detailed report.

Ibrahim said, “The last time we heard about this issue was when we had a little retreat last two weeks in Lagos, where they (CBN) did the presentation of their biannual activities to the committee (Senate Committee).

“We took them up on the issue, and the bank, that’s the CBN told us how they did the investigation.

We are taking them up based on the fact that we have investigated and we saw what happened. All our resolutions were passed to them, and they did not even implement the resolutions before saying they’re going into another investigation.

“They said their investigation was based on a petition from a law firm and their stand was that the penalty was correct.

“So, judging from the information we have now, it will be ridiculous for them to say they’re bringing the penalty down from $8.1bn to about $800m. That will be ridiculous for the CBN.

“What they told us  that day was that they were going to give us the report from when they started the investigation to date and their discussion with MTN.

“So, if that’s the case, they have to answer to Nigerians through us in the Senate Committee to the legislature, what informed the penalty of $8.1bn?

“And what information have they now gathered that informed the reduction to $800m.

“I don’t know what percentage of reduction you can call that. Is it not up to 1000?

“So, we will be interested to know that. We’re not against whatever they’re doing, but they will have to explain to Nigerians. Did they take the decision they took against MTN in a hurry, a foreign direct investor like MTN?

“We took into consideration the role of MTN in the economy.

“That’s why we did a very thorough job, and we believe we did a thorough job, that they did not steal any money then, that was our own assertion, though they repatriated.

“By then, CBN said all the places where some infractions to the law or guidelines where they gave them waivers.

“That was our position. So, we will be interested in the investigation.

“We want to know what informed this decision. We as a committee and as a Senate will be interested.

“They will have to explain. As I sit here, I believe it may not be true.

“If it is close to the truth, then they will have to explain to Nigerians.

Asked if the committee is likely to take up the matter, Rafiu said: Definitely, I will call the Clerk to ask them that we are expecting their report as promised in the retreat. “In the report, if we find anything close to this, I will let you know.

“We will write them and probably give ultimatum for the report. This is a very sensitive thing to the economy.

“All of us know they (MTN) committed a lot of resources in Nigeria; so we don’t want them to be used as a yardstick as to how the Nigerian government treats investors.”