MTN probe: Se­nate asks CBN to sanc­tion IBTC over $587m repa­tri­a­tion

Daily Trust - - NEWS - By Is­mail Mu­dashir

A Se­nate panel has asked the Cen­tral Bank of Nige­ria (CBN) to sanc­tion Stan­bic IBTC, over im­proper doc­u­men­ta­tions in re­spect of cap­i­tal repa­tri­a­tion and loan re­pay­ments amount­ing to $587.6m in­volv­ing Mo­bile Telecom­mu­ni­ca­tions Network (MTN).

The Se­nate had in Septem­ber, 2016 man­dated its com­mit­tee on Bank­ing, In­sur­ance and other Fi­nan­cial In­sti­tu­tions to in­ves­ti­gate the, “Un­scrupu­lous Vi­o­la­tion of the For­eign Ex­change Act by MTN and oth­ers.”

The re­port of the com­mit­tee chaired by Se­na­tor Rafiu Ade­bayo Ibrahim (APC, Kwara South) has been pre­sented to the Se­nate for con­sid­er­a­tion.

The com­mit­tee: “Con­demn the CBN for fail­ing in its duty to bring forth those ob­served de­fi­cien­cies of For­eign Ex­change (Mon­i­tor­ing and Miscellaneous), Act (FEMMA) for amend­ment rather than usurp­ing the pow­ers of the Se­nate by grant­ing ex­ten­sions and ex­emp­tions, which be­came prone to abuses.

“Man­date the CBN to sanc­tion Stan­bic IBTC for im­proper doc­u­men­ta­tions in re­spect of cap­i­tal repa­tri­a­tion and loan re­pay­ments amount­ing to $388,195,183 and $199,440,952 re­spec­tively.”

The panel also man­dated the CBN to in­ves­ti­gate and re­port back to the Se­nate the ac­tiv­i­ties of Stan­bic IBTC nom­i­nees in the mat­ter of shares, trans­fer and split­ting.

It re­quested the apex bank to come up with a pro­posal for the amend­ment of FEMMA with a view to en­sur­ing the growth of the econ­omy through mas­sive for­eign cap­i­tal in­flow and greater re­ten­tion of for­eign ex­change.

The com­mit­tee fur­ther di­rected the CBN to forth­with ren­der pe­ri­odic sta­tus re­ports to Se­nate on the per­for­mance of for­eign in­vest­ment in­flows and out­flows.

The in­ves­ti­ga­tion re­vealed that from 2001-2016, a to­tal cap­i­tal in­flow of $1.2bn was in­jected for MTN op­er­a­tions in Nige­ria.

How­ever, it said MTN repa­tri­ated over $1.3bn an­nu­ally since 2006, or $13.92bn be­tween 2006 & 2016.

“Just for one com­pany, the phe­nom­e­non con­sti­tutes a huge out­flow that could pose chal­lenges for for­eign ex­change and na­tional mone­tary sta­bil­ity, “the com­mit­tee re­vealed.

Our cor­re­spon­dent re­ports that no de­ci­sion has been taken on the re­port, as the Se­nate re­solved that the re­port be stepped down for fur­ther con­sul­ta­tion and brought back on another leg­isla­tive day.

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.