MTN withdraws case against NCC, pays N50bn fine

MTN on Wednesday withdrew its lawsuit against the Nigerian Communications Commission over N1.04tn ($5.2bn) fine and paid N50bn ($250m) towards a probable settlement.

But the Federal Government said the next line of action would be determined after verifying the MTN’s payment claim.

The telecommunications company said its decision was based on renewed steps towards a negotiated settlement and to create a good atmosphere for further negotiations.

Speaking on the issue, the MTN Nigeria Chief Executive

NCC, MTN: Court orders Parties to Maintain Status Quo

LAGOS — A Federal High Court sitting in Lagos, yesterday, ordered parties to maintain status quo, following a mareva injunction by the Attorney General of the Federation, seeking to bar MTN Nigeria  from emptying its accounts in 21 commercial banks in Nigeria.

Trial judge, Justice Idris Mohammed, ordered parties to maintain status quo ante bellum pending the determination of the suit and adjourned till January 22, 2016 for hearing.

 

“An order is hereby made directing the parties cited herein to maintain the status quo ante bellum pending further hearing,” the judge said.

The AGF, has sought “an order of mareva injunction restraining the aforementioned banks from releasing, further releasing any funds, making sale, transfer or payment of any monies or dealing in any manner whatsoever with any and all monies maintained by the plaintiff/respondent (MTN) or its agents, privies, subsidiaries, sister companies or the like in the aforestated banks that will alter, decline or reduce the amount of the first defendant’s/applicant’s fine against the plaintiff/respondent in the sum of N1,040,000,000,000 which has remained wholly unsatisfied, pending the determination of the motion on notice.”

NCC: Why we reduced MTN’s N1.04trn fine

The Nigerian Communications Commission, NCC, has defended its action to reduce the N1.04 trillion fine on MTN Nigeria to N780 billion, saying it acted in the interest of the stability of the telecom sector.

The commission said it weighed all pros and cons and arrived at a decision it considered favourable to all concerned.

Director public Affairs of the NCC, Mr Tony Ojobo

Director public Affairs of the NCC, Mr Tony Ojobo, said that after considering the operator’s admission of guilt, huge investment in the country, the large subscriber base and Nigeria being its largest market, the decision to arrive at the reduction was not too difficult.

According to Ojobo, “MTN wrote the commission, acknowledged

 that there has been an infraction and are now pleading for leniency . In the past we have also had people plead for leniency on their sanctions. At that time, of course the NCC board has not been constituted, no Minister, the authority of the president was required for such a decision to be taken in the absence of the minister, and so the commission had to notify the presidency.

NCC Slammed N1.4trn, fine too heavy to bear – MTN

Three days after Nigerian Communications Commission, NCC slammed a N1.4 trillion penalty on MTN Nigeria for failure to disconnect customers with unregistered SIM cards, Parent company MTN group has cried out that the fine was too extreme, even as it continues to engage the regulator on how to resolve the issue.

MTN Group noted with dismay that Nigerian Communications Commission refused to listen to its plea to reconsider its stand on the penalty slammed on its Nigerian arm last week.

According to a report, MTN Nigeria spokeswoman, Chineze Gbenga-Oluwatoye, had said in an e-mailed response, that “recommendations were put forward with respect to the non-commensurable nature of the fine but the Nigerian Communications Commission did not accept recommendations that the fine of 200,000 Naira ($1,005) per SIM was too heavy.”