LAGOS, Federal Republic of Nigeria. Federal High Court in Lagos on Tuesday barred MTN Nigeria Communications Limited from moving any funds abroad it may have in Nigerian banks until the hearing of its suit challenging the N1.4 trillion fine imposed on it by the Nigerian Communications Commission (NCC).
MTN was fined by $5.2 billion by NCC on October 2015
The Federal Government brought a motion to restrain the 21 commercial banks, in which MTN has funds, from releasing money to the telecommunications giant.
“The FG seeks an order of Mareva injunction [a court order which requests assets be frozen] restraining the aforementioned banks from releasing, making a sale, transferring, or paying any of the monies maintained by the plaintiff MTN,” the motion read in part.
In October, the telecommunications giant was originally hit with a massive $5.2 billion fine by the NCC for failing to disconnect unregistered subscribers.This failure was in direct violation of regulations put in place by the NCC in order to combat the uptick in kidnappings and the Boko Haram insurgency, both of which often involve the usage of cell phones.
The fine was eventually reduced to $3.9 billion in December. However, MTN is suing the NCC and the Attorney General of Nigeria, Abubakar Malami, contending that as a regulatory body the NCC does not have the right to assume all the functions of the state.
The Court however refused an application filed by the Federal Government seeking to freeze the account of MTN Nigeria Communications Limited in 21 commercial banks in Nigeria.
The application of mareva injunction, filed by Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN), was to stop MTN from boycotting payment of the N1.04trn fine imposed on it by the Nigerian Communications Commission, NCC, for its failure to deactivate unregistered subscribers.
Justice Idris Mohammed turned down the application on ground that the AGF had not shown enough facts to prove that MTN was about to empty its bank accounts and move its funds out of the country. The AGF had expressed fear that MTN could move all its funds out of the country before the N1.04tn fine could be enforced.
Consequently, he sought an order directing all the 21 banks to open a special interest- yielding account in the name of the Chief Registrar of the Federal High Court and move N1.04tn out of whatever funds that was standing to MTN’s credit in their possession.
Counsel to the AGF, Mr. Dipo Okpeseyi (SAN), in a 14-paragraph affidavit deposed to by his junior, Steve Nwabueze, had argued that MTN was in the habit of regularly repatriating its funds out of Nigeria.
He noted that between October 2007 and May 2009, a period of 19 months, MTN moved over $7.7bn of the money made in Nigeria to a foreign account.
He further pointed the court’s attention to an instance when in one day, specifically on February 8, 2008, MTN transferred over $936m out of Nigeria to accounts in Mauritius, Cayman Island and British Virgin Island.
Okpeseyi maintained that MTN was under an obligation to pay the N1.04tn fine, because it was NCC’s administrative decision, which remained final unless it was reviewed by the commission or nullified by the court.
He said though NCC had earlier given MTN concession on the fine and reduced it to N780bn, but since MTN had neglected or failed to pay on or before December 31, 2015, the fine remained N1.04tn.
Okpeseyi urged the court to grant the application in the interest of justice to prevent the court’s decision from being rendered nugatory if it went in the favour of NCC and AGF.
In his ruling, Justice Mohammed held that the case was sensitive and of public interest, adding that he would rather hear the case filed by MTN to challenge the fine and give a judgment within a short time.
Justice Mohammed ordered parties to maintain status quo ante bellum pending the determination of the suit and adjourned till January 22 for hearing.
MTN had assembled seven Senior Advocates of Nigeria, led by Chief Wole Olanipekun, to challenge the N1.04tn fine imposed on it by NC
Credit: National Mirror (Nigeria)
