MTN rejects CBN’s order to refund $8.1b
MTN Nigeria yesterday rejected the allegation that it repatriated $8.1 billion illegally. The Central Bank of Nigeria (CBN) asked the company to refund the cash.
The telco insisted that all the dividends it paid to its shareholders between 2007 and 2015 were approved by the apex bank.
The company was reacting to the claim of the apex bank that it illegally converted shareholder loans to preference share and repatriated $8.1 billion as dividends during the period under scrutiny.
MTN, in a statement titled: Central Bank of Nigeria (CBN) correspondence regarding Certificates of Capital Importation (CCIs) in Nigeria” issued yesterday, said it strongly refutes the allegations and claims.
“MTN Nigeria Communications Limited (MTN Nigeria) received a letter on 29 August 2018 from CBN alleging that CCIs issued in respect of the conversion of shareholders’ loans in MTN Nigeria to preference shares in 2007 had been improperly issued. As a consequence, they claim that historic dividends repatriated by MTN Nigeria between 2007 and 2015 amounting to $8.1 billion need to be refunded to the CBN.
“MTN Nigeria strongly refutes these allegations and claims. No dividends have been declared or paid by MTN Nigeria other than pursuant to CCIs issued by our bankers and with the approval of the CBN as required by law,” the telco said.
MTN said the issues surrounding the CCIs had been the subject of a thorough enquiry by the Senate.
“In September 2016, the Senate mandated the Committee on Banking, Insurance and other Financial Institutions to carry out a holistic investigation on compliance with the Foreign Exchange (Monitoring and Miscellaneous) Act by MTN Nigeria & Others. In its report issued in November 2017, the findings evidenced that MTN Nigeria did not collude to contravene the foreign exchange laws and there were no negative recommendations made against MTN Nigeria.
“MTN Nigeria, as a law-abiding citizen of Nigeria, is committed to good governance and to abiding by the extant laws of the Federal Republic of Nigeria. The re-emergence of these issues is regrettable as it damages investor confidence and, by extension, inhibits the growth and development of the Nigerian economy.
“We will engage with the relevant authorities and vigorously defend our position on this matter and provide further information when available,” the telco said.
In 2015, the Nigerian Communications Commission (NCC) fined MTN N1.04 trillion on the telco for failing to deactivate unregistered lines. The huge penalty was negotiated down to N330 billion out of which the Attorney-General of the Federation, Abubakar Malami (SAN), said his ministry paid N500 million to lawyers for helping with negotiations.