Confusion Over MTN’s Payment Of N50Bn Fine To Government

MTN - EVERYTIME YOU FOUL, EVERYTIME YOU PAY

There was a mild drama yesterday when Adebayo Shittu, minister of Communication Technology, distanced the ministry from the negotiation deal which culminated in the payment of N50bn by MTN Nigeria Limited instead of N1.04trn fine imposed on the telecommunications giant by the Nigerian Communications Commission (NCC) for SIM deactivation defaults.

According to Leadership, Abubakar Malami (SAN), minister of Justice and Attorney-General of the Federation, also denied entering any agreement so far with MTN over the fine.

The revelations were made yesterday before the House of Representatives Standing Committee on Telecommunications on the heels of the payment of N50bn by MTN to the Federal Government as against as the actual fine imposed on it by the NCC.

The Committee had summoned both ministers, Prof. Garba Dambatta, executive vice chairman of NCC, and the chief executive officer of MTN over the circumstances surrounding the payment of N50bn by MTN and an alleged offensive letter earlier written to the lawmakers by the MTN CEO.

But the MTN CEO earlier apologised to the committee members and consequently withdrawn the letter as demanded by the lawmakers.

“I will like to say categorically that MTN and I takes this body in high esteem. And I apologise wholeheartedly for not attending the previous meeting. I withdraw the letter the committee is referring to. I beg for your forgiveness,” he said.

For his part, Shittu told the lawmakers that he only got to know about the matter through a letter dated February 3, 2016 addressed to him, Finance Minister and the Accountant-General of the Federation on the settlement proposal by MTN.

But Malami, also contended that his resolve to wade into the issue surrounding the out-of-court settlement was in line with the provisions of Sections 86 and 87 of the NCC Act which permits him as a key operative of the Executive arm to exercise such oversight function.

Arguing that the language of the NCC Act on violation should not be misconstrued to be committal of an offence, he said: “What has been imposed by the NCC is not a fine in the strict sense, it was a penalty and substantially certain part of the NCC Act was categorical on that. So, a penalty is different from a fine because a fine can only be imposed by a court of law after due determination of a penal case when an offence of guilt is eventually entered. So, what has been happening about the imposition of the NCC is an imposition of penalty and not a fine.

“The determination of the commission of an offence or otherwise of an offence is the discretion of a court of law. In the absence of such pronouncement of a court of law regardless of the issue at stake, one cannot jump to conclusions that an offence has been committed. So further rider to Sections 86 and 87 of the NCC Act.”

He also justified why he ordered that the N50 billion initial payment by MTN be lodged in the asset recovery account as against lodging it into the consolidated revenue account that belongs to the three tiers of government.

Insisting that he had not violated the constitution, which specifies that all government monies be paid into the consolidated revenue account, he said that the out-of-court negotiation with MTN is yet to be conclusive.

Faulting the notion that he had usurped the powers of the NCC going by the role he played on the issue, he said as far as he was concerned, there is yet to be an out of court deal with MTN.

He said: “I have never made reference to the inconclusiveness of negotiations. I stated clearly that no negotiations had taken place. They only put their positions in writing and accordingly circulated to the stakeholders.

However, Malami opted to remain silent when confronted by the lawmakers that he erred in law since Sections 88 and 89 of the constitution prescribed that monies belonging to the government should be paid into the consolidated revenue account.

This prompted the lawmakers to summon Mrs. Kemi Adeosun, minister of Finance, to appear tomorrow to shed light on the whereabouts of the N50 billion initial payment by MTN.


SOURCE: NIGERIA COMMUNICATIONS WEEK