MTN Nigeria recorded a R9,287-billion provision for the fine at the end of the reporting period, negatively impacting reported EBITDA by 13,6% and HEPS by 402 cents. On 22 January 2016, the matter was adjourned by the judge to allow parties to find an amicable solution.
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“Accordingly, no further comment can be made at this time”, the statement quoted Moolman as saying.
MTNAfrica’s biggest mobile phone group has been in talks with Nigerian authorities to have the $3.9 billion penalty reduced and last month made a “good faith” payment of $250 million towards a settlement.
The committee also frowned at the alleged shutting out of the Ministry of Communications Technology and the Nigeria Communications Commission (NCC) from the deal.
The company was reacting to reports in the media that the telecommunications operator had proposed a $1,5-billion settlement.
“$1.5 billion is in the right ballpark to settle the fine”, Dobek Pater, managing director of research firm Africa Analysis, said by phone.
The committee expressed concern over the role played by the Attorney General of the Federation and Minister of Justice, Abubakar Malami, in the out of court settlement between the Federal Government and MTN.
During the sitting, Adeola Olamilekan vice chairman of the senate committee, had displayed a proposal from MTN, which he said was made to the government by MTN.
In the letter dated February 24, MTN proposed paying 100 billion Naira in five annual instalments, buying 80 billion naira of Nigerian sovereign debt, and offering 70 billion naira worth of access to its fibre network.
A document from the office of the Solicitor General of the Federation read at the hearing of the Senate Committee on Communications stipulated this. In the proposal, the telecommunications company told Government it could only pay the sum of N300 billion between now and 2020.
“Other sources claimed that MTN paid the money into the Central Bank of Nigeria’s Recovery Account”.
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“We gathered from the regulator, NCC, that the commission neither received the N50 billion nor was it notified of such payment”.
