$1.5bn MTN fine: AGF transfers case to FIRS, Customs
The Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami (SAN) has transferred the resolution of the $1.5 billion fine against MTN to the Federal Inland Revenue Service and Nigerian Customs Service.
The South African-owned telecom giant has been locked in a protracted dispute with the Federal Government after it was slammed with an initial $3.5bn fine for failing to disconnect unregistered sim cards in October 2015 as provided by the rules.
It was claimed that over 5 million of such lines were allowed to operate, some of which were used by kidnappers and other criminal elements, including the Boko Haram sect.
The media and public relations aide to the AGF, Umar Jibrilu Gwandu, on Friday said the position was made known in a letter to the counsel to MTN, Messrs Wole Olanipekun & Co.
Malami said the decision followed careful and painstaking review and due consultation with relevant and statutory regulatory agencies.
Corroborating, MTN Nigeria yesterday said its legal counsel has received a letter from the Attorney General of the Federation and Minister of Justice (the AGF) Abubakar Malami formally withdrawing his demand for N242bn and USD$1.3bn alleged revenue indebtedness.
The letter confirmed that following careful review and due consultation with relevant statutory agencies, the AGF decided to refer the matter to the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) with a view to resolving contentious issues, MTN said in a statement Friday night.
“MTN Nigeria will consequently follow due court process to withdraw its legal action against the AGF and engage with the FIRS and NC on the issues. MTN Nigeria remains committed to conducting its business in accordance with applicable laws in Nigeria”, the telecom company said in the statement.
Expressing satisfaction at the development, MTN Nigeria CEO, Ferdi Moolman, said “we are very pleased with the decision of the AGF and we commend him for his wisdom. We maintain our dedication to building and maintaining cordial relationships with all regulatory authorities in Nigeria and remain fully committed to meeting our fiscal responsibilities and contributing to the social and economic development of Nigeria.’’