The House of Representatives Committee on Telecommunications has expressed anger over a letter from MTN Nigeria, in which it declined to honour the committee’s invitation to appear before it over the N780 billion fine slammed on it for failing to deactivate 5.1 million unregistered SIMS on its network last year.
MTN CEO Ferdinand Moolman was invited to explain why the firm failed to comply with NCC’s directives on SIM registration, the N1.04tr fine and its subsequent reduction to N780 billion.
The committee also invited the Minister of Justice and Attorney-general of the Federation (AGF) Abubakar Malami; Chief of Staff to the President Abba Kyari, and Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele. All of them failed to show up.
MTN, in the letter which also advised the Saheed Fijabi-led committee to look for any information it needed from other government agencies involved in the matter, stated that it would not make any comment on it.
The firm, which called on the lawmakers to quit meddling in the matter and allow for amicable resolution between parties involved, told the committee to accord the negotiation the sensitivity and confidentiality it deserved.
However, the committee took exception to the letter, describing it as the height of insult to the highest legislative body in Nigeria. It also sent out the firm’s representative Austin Iyasere, for fiddling with his phone during the meeting.
Citing sections 88 and 89 of the Constitution, the Committee noted that “the operator and indeed all those invited by the House should know that the National Assembly is governed by the Constitution. When we invite heads of agencies, we expect that they will appear in person.
“This letter from MTN shows that it does not respect the legislature. In addition to that insult, MTN is now dictating to us how to go about our legislative functions.
“The first time we invited the CEO, he said he could not come because the case was in court; this time again, he is saying it is negotiation. MTN is daring the House,” it declared.
The lawmakers further noted that due to MTN’s negligence, over 10,000 Nigerians had lost their lives.
Consequently, the committee invited Moolman for the last time. This time, if he fails to come, a bench warrant would be issued for his arrest.
NCC lifts regulatory suspension on MTN
Nigerian Communications Commission (NCC) has lifted the suspension of regulatory service to MTN Nigeria which was slammed on the telecom firm in October 2015 over its default in the deactivation of 5.1 million incomplete registered SIM cards in its network.
NCC “has lifted the suspension of regulatory services to MTN Nigeria,” the Johannesburg-based company said in a statement Tuesday. The move allows Africa’s biggest wireless operator to seek approvals for promotions and other plans to grow in the company’s biggest market,” MTN said.
NCC’s move came as a relief to Nigeria’s largest mobile operator which has been making efforts to resolve the N780 billion fine placed on it.
NCC had sanctioned MTN Nigeria for accumulating over 28 separate and proven infractions.
According to the official, “NCC has today (yesterday) written to us that they have lifted the suspension of regulatory service to us.”
This means that the regulator has restored cordial relations with MTN and the operator could receive certain benefits that were denied it because of the suspension of regulatory service. The source said the operator would issue a statement on it later.
Efforts to speak to Mr Tony Ojobo, Director of Public Affairs at NCC were futile as his phone was not answered. Another employee said the corporate affairs heads at NCC were at a meeting.
LEADERSHIP reported on October 26, 2015 that “MTN’s persistent violations have forced the NCC to impose the unprecedented sanction of suspending all regulatory services to MTN following its accumulation of over 28 separate and proven infractions.”
According to an NCC document, NCC stated that “MTN’s non-compliance with the deactivation directive is unfortunately not an isolated incident. It needs to be seen in the context of a general pattern of non-compliance with regulatory directives that actually predates the current SIM registration infractions.”
In the NCC quarterly compliance enforcement report for Q2 2015, out of the six sanctions imposed on operators for various acts on non-compliance, MTN was involved and sanctioned for four separate infractions, the NCC document stated.
Other infractions committed include non-compliance of MTN with the restriction on promotions imposed on mobile operators on November 8, 2012 in an effort to address persistent Quality of Service issues within the industry; failure to comply with NCC’s Determination of Dominance 2013; violation of pricing obligations under the 2013 Dominance Determination for MTN Virtual Top Up plus.
NCC had fined MTN Nigeria N1.04 trillion ($5.2bn) which was later reduced by 25 per cent to $3.9 billion (N780 billion) in December, last year. MTN later wrote a letter to NCC pleading for leniency, pledging not to disregard future directives and guidelines as well as appealing for reduction in the fine.
MTN in February issued a profit warning that it expects about 20 per cent profit decline from its Nigerian operation. MTN on March 5, 2015, stated, in its full year 2015 financial results, that its Nigerian operation in particular experienced a very challenging year, and that weak economic conditions and the limited availability of US dollars contributed to a lower-than-expected performance.
On 24 February, MTN Nigeria made a without prejudice good faith payment of N50 billion ($250 million) to the Federal Government in relation to the NCC fine for the late disconnection of subscribers, on the basis that this would be applied towards a settlement.
MTN Nigeria also agreed to withdraw the matter from the Federal High Court while negotiations with the regulatory authorities are ongoing.
-Leadership