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| NCC sanctioned MTN over failure to remove 5.1 million unregistered subscribers from its network |
The
Federal Government, yesterday, said it would neither be cowed nor
threatened by MTN’s court action against the ₦1.4trn fine which was later reduced to ₦780 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.
Vanguard report continues:
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 ₦1.4 trillion to ₦780
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 ₦780 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 ₦1.04 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.”
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