Nigeria House of Reps fault review of $5.2bn fine imposed on MTN

The House of Representatives has expressed concern over the controversy trailing and implications of fine imposed on the South African telecoms company, MTN.

The lawmakers during the overview of the process leading to the reduction of the N1.040 trillion or $5.2 billion fine frowned at the failure of Nigerian Communications Commission (NCC) to involve the National Assembly in the process, which they described as unsatisfactory.

The House Committee on Communications chaired by Saheed Fijabi said it was an embarrassment to Nigeria. Worried by the development, the Committee resolved to summon all the parties involved in the exercise, just as the lawmakers expressed determination to know what informed the initial fine of over N1 trillion as well as those behind the reduction from 35 percent to 25 percent.

“Our observers may presume that we, as a nation either have no rules of operation with regards to business operations or if we do, we may lack sincerity in our operations.

“It is embarrassing for instance to listen to what the British Broadcasting Corporation (BBC) had to say concerning the present impasse. It is equally appalling to observe the conflict in figures with regards to the reduction of the fine and discussions making the rounds concerning the action or inaction of the National Assembly,” Fijabi said.

The Committee also expressed reservations over the N6.2 billion budgeted for Subscriber Identity Module (SIM) card registration out of which the Commission said it had spent about N3.5 billion.

In his presentation, Umar Danbatta, NCC executive vice chairman, explained that all the mobile network operators were given the opportunity to reconcile their records before the penalty was slammed.

According to him, the total number of invalidated SIM cards showed that MTN had 11,550,819 unregistered cards; Etisalat had 2,654,877 unregistered cards; Glo had 824,946 unregistered SIMs; Airtel had 3,500,000 unregistered SIMs, while Visafone had 297,300 unregistered SIMs.

Danbatta however said except for MTN, the other four operators showed substantial compliance by meeting the initial set deadline for the deactivation of the invalidated lines.

He also disclosed that MTN formally agreed to the infractions after failing to adhere to the Commission’s directives on unregistered SIM cards.

According to him, the deduction of the MTN fine, first 35 percent then 25 percent was decided at the inter-agency committee since the Commission has no governing board in place yet.

He also stated that MTN was given a deadline of December 31, 2015 to pay the reviewed N780 billion fine, saying “the process was carried out transparently, we did our duty and as a duty to this country, not for publicity to get at any one.”