N1.4trn fine: FG calls MTN's bluff, says Dec 31 deadline subsists

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''.
Vanguard.