Herewith a further update on the fine imposed on MTN
Nigeria and renewal of cautionary announcement: Further
to the SENS announcement issued by the Company on 4
December 2015, shareholders are advised that all factors
having a bearing on the matter have been thoroughly and
carefully considered including a review of the
circumstances leading to the fine and the subsequent
letters received from the Nigerian Communications
Commission (NCC).
MTN Nigeria acting on legal advice has resolved that the
manner of the imposition of the fine and the quantum
thereof is not in accordance with the NCC’s powers under
the Nigerian Communications Act and therefore there are
valid grounds upon which to challenge the fine.
Accordingly MTN has followed due process and has
instructed its lawyers to proceed with an action in the
Federal High Court in Lagos seeking the appropriate reliefs.
MTN is advised that in the current circumstances in line
with the lis pendens rule (pending legal action) the parties
are enjoined to restrain from taking further action until the
matter is finally determined. This is consistent with
previous judicial decisions in Nigeria.
Notwithstanding this action, the Company will continue to
engage with the Nigerian Authorities to try and ensure an
amicable resolution in the best interests of the Company,
its stakeholders and the Nigerian Authorities Shareholders
are therefore advised to continue to exercise caution when
dealing in the Company’s securities until a further
announcement is made. As advised previously, we will
keep you updated as the matter unfolds. I encourage you
to continue focusing on our customers and strive to keep
our promise to provide the bold, new Digital World to them.
South African telecoms giant MTN said Thursday it would
launch a court challenge against the $3.9 billion fine that
Nigeria has ordered it to pay by December 31 for failing to
disconnect unregistered users.
MTN, in a statement to shareholders today, said it decided
to take this route after exhausting all other options to have
the fine reduced.
MTN said that “All factors having a bearing on the matter
have been thoroughly and carefully considered, including a
review of the circumstances leading to the fine and the
subsequent letters received from the NCC.”
“MTN Nigeria, acting on legal advice, has resolved that the
manner of the imposition of the fine and the quantum
thereof is not in accordance with the NCC’s powers under
the Nigerian Communications Act and therefore there are
valid grounds upon which to challenge the fine.”
Details soon..
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