$8.1b Refund Order: MTN Drags CBN To Court | Naija News
Connect with us


Business

$8.1b Refund Order: MTN Drags CBN To Court

Published

MTN Denies Wrong Doing In Repatriation Of Dividends

The Mobile Telecommunications Network, MTN in Nigeria has sought the intervention of the federal high court over the $8.1 billion fee that the Central Bank of Nigeria is asking it to refund among others.

The CBN had accused the company of illegally repatriating $8.8 billion through improper Certificates of Capital Importation (CCI), while the Attorney General of Federation is seeking the payment of $2 billion in unpaid taxes over a 10-year period.

Four local lenders, found wanting in the deal were fined. The fines have since been deducted by the CBN from their accounts.

The firm has repeatedly rejected both allegations, Naija News reports

Group Chief Executive Officer (CEO) Rob Shutter is sure of an amicable settlement of the issues.

Responding to a question on the crisis on the sideline of the ongoing International Telecoms Union (ITU) Conference at the International Convention Centre (ICC) in Durban, South Africa, Shutter said: “In all its 22 countries of operation, Nigeria is the telco’s largest market.

According to him The challenges of the past two weeks, will be addressed.”

The court processes notwithstanding, the telco will continue to engage with the authorities on these matters.

In a statement, MTN Corporate Relations Executive, Tobe Okigbo said the telco “continues to categorically and unequivocally deny all charges related to the CBN and AGF investigations into the company’s CCIs and unpaid taxes respectively”.

He said as previously disclosed, the CBN has alleged improper dividend repatriations by MTN Nigeria and requested that $8.1 billion be returned “to the coffers of the CBN, whilst the AGF has alleged unpaid taxes on foreign payments and imports and that approximately $2.0 billion in relation to these taxes be paid to the Federal Government of Nigeria (and now directed that the payment of the $8.1 billion is dealt with through his office rather than as directed by the CBN). MTN Nigeria has denied these allegations and claims.

“Furthermore, four commercial banks were issued fines in respect of the administration of the CCI and irregular dividend repatriation and requested to return, in aggregate, the same $8.1 billion.

“The allegations being made involve issues that appear to be complex and so are easily misunderstood and misinterpreted. They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes.

“The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law.

“With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations being made and the processes that are being followed.

“In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator. This has been done today.”

Okigbo restated MTN’s commitment to Nigeria, adding that it will continue to defend its innocence.

In his words,“The company will continue engaging with the relevant authorities, and further information will be provided as and when available”.

 

Copyright Naija News 2018. All rights reserved. You may only share Naija News content using our sharing buttons. Send all news and press releases to [email protected].
Advertisement


Contact Us

info[at]naijanews.com