Africa's
telecommunications giant, MTN, is set for a legal showdown with the
Nigerian Communications Commission over the fine slammed on the firm
which was recently reduced to N780bn.
The mobile giant, on Thursday, December 17, said it will not pay
the N780 billion fine imposed on it by the Nigerian Communications
Commission (NCC) over subscriber identity module (SIM) card fraud.
The company said It will rather challenge the authority of the
regulator in court. MTN said it had sought legal advice and would
challenge the fine and the manner of its imposition which it argued went
beyond the constitutional powers of the regulator. The deadline for the
payment was set for December 31.
But the NCC said it was yet to receive MTN’s court papers. Its
Director, Public Affairs, Tony Ojobo, wondered why the volte face after
MTN had admitted committing the crime and pleading for leniency in a
letter to the commission.
A statement issued by MTN Group Corporate Affairs reads:
“Further to the SENS announcement issued by the company on 4 December
2015, shareholders are advised that all factors having a bearing on the
matter have been thoroughly and carefully considered, including a review
of the circumstances leading to the fine and the subsequent letters
received from the NCC.
“MTN Nigeria acting on legal advice has resolved that the
manner of the imposition of the fine and the quantum thereof is not in
accordance with the NCC’s powers under the Nigerian Communications Act
and therefore there are valid grounds upon which to challenge the fine.
“Accordingly MTN has followed due process and has instructed
its lawyers to proceed with an action in the Federal High Court in Lagos
seeking the appropriate reliefs.
“MTN is advised that in the current circumstances in line with
the lis pendens rule (pending legal action) the parties are enjoined to
restrain from taking further action until the matter is finally
determined. This is consistent with previous judicial decisions in
Nigeria.
“Notwithstanding this action, the company will continue to
engage with the Nigerian authorities to try and ensure an amicable
resolution in the best interests of the company, its stakeholders and
the Nigerian authorities.”
NCC imposed a fine of N1,4trillion on MTN for “criminally harbouring” some 5.2million pre-registered SIMs on its network.
When News Breaks Out, We Break In. (The 2014 Bloggies Finalist)
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