The lingering MTN fine saga was expected to have ended last Friday following the agreement by the operator to pay a reduced fine as well as adhere to industry regulations as spelt out by the Nigerian Communications Commission, NCC. But the position of the House of Representatives Committee on Telecommunications on the latest deal has again sparked another round of debate pitching many stakeholders at loggerheads over the lingering fine saga.
WHEN the news broke out last week Friday that the lingering issue on the imposed a fine of N1.04 trillion on MTN Nigeria for infraction of the provisions of the existing laws on telecommunication services in the country had been resolved, there was initial excitement among industry analysts, who had expressed fears over the impact of the crisis on the growth of the sector, and by extension the economy.
However, the House of Representatives Committee on Telecommunications’ reaction to the slash of the fine by summoning the Commission and the Ministry of Communication and the Attorney-General and Minister of Justice to appear before it to explain reasons for the reduction has again opened a new chapter in the seeming unending controversies that have trailed the sanctions over the past seven months.
The regulator, NCC had reached an agreement with MTN that the telco should pay N330 billion of the initially imposed N1.04 trillion as final settlement for the infraction .
The agreement was the result of several discussions which have been going on for some weeks between MTN, NCC and the Federal Government.
It was finally agreed that MTN will pay the NCC the sum of N330 billion in full and final settlement of the fine in line with an agreed payment plan.
It was also agreed that beside the monetary settlement, MTN Nigeria is to subscribe to the voluntary observance of the Code of Corporate Governance for the telecommunications industry and will ensure compulsory compliance.
The company also agreed to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as is commercially and legally possible, and to always ensure full compliance with its license terms and conditions as issued by the regulator.
Both parties agreed that these terms of settlement cannot be altered, varied, annulled or modified in any respect, except by writing duly executed by both parties; and the terms of settlement constitute all the terms and conditions of the settlement and supersede and replace any previous offers, representations and terms.
In arriving at the agreement, the Executive Vice Chairman of the NCC, Prof Umar Danbatta said the decision was taken based on professionalism and global best practices and in line with the NCC core value “to be fair, firm and forthright”
According to the Commission, it has always carried industry and stakeholders along in taking transparent regulatory actions, adding that at no point will the regulator do anything to jeopardise the business health of the entire sector.
“We were careful not to take decisions that were likely to cripple the business interest of the operators we regulate. Besides, the downturn of the global economy is biting hard on everybody and every sector, so we must therefore be sensitive and flexible in our decisions”, he said.
The dates of the payment plan are March 31, 2017-N30 billion; March 31, 2018-N55 billion; December 31, 2018-N55 billion; March 31, 2019-N55 billion and the balance will be in May 31, 2019-N55 billion.
But the details of the agreement did not go well with the House of Representatives Committee on Telecommunications. They were angry that the agents of the executive arm of government did not think it proper to carry them along in the new deal.
In their boiling anger, they summoned all the affected parties, and when they eventually arrived at the meeting the lawmakers were shocked to discover that the leadership of the concerned agency sent representatives for a personal invitation issued them.
It sparked further the anger of the lawmakers and threats were issued particularly at the NCC and the Ministry of Communication.
It was learnt that the lawmakes were angry because the Attorney-General of the Federation, Mr. Abubakar Malami and the Minister of Communications, Barrister Adebayo Shittu, Executive Vice Chairman of Nigerian Communications Commission, Prof. Garba Danbata failed to appear personally before its committee.
And one of the members of the Committee, Mr. Johnson Agbonayima displayed his anger by walking out of the meeting ever before it started while the other angry members threatened to ensure zero budgeting for the Ministry of Communications and withhold that of the NCC for reducing the fine without recourse to the parliament.
Defending their action, the Permanent Secretary of the Federal Ministry of Communications who represented the Minister, Mr. Sonny Echono, said that Federal Government had approved the N330 billion as “the whole and final fine against MTN”, and that this came after procedural engagements involving a ministerial committee as well as the inputs of the AGF.
According to him, they saw the House’s ongoing investigation as an “independent” effort, whose outcome should not stop the progress so far made.
Similarly, the Director of Public Affairs, of the NCC, Tony Ojobo who represented the NCC said that the negotiation process was carried out transparently, and that the outcome has “received the blessing of the highest office of government.”
Industry stakeholders who have been watching the whole drama from afar expressed mixed feeling over the actions of both parties saying that it was uncalled for in the interest of the sector.
An industry analyst, Chijioke Abuba described the threat from the lawmakers as a welcomed development for the industry saying that there are no threats in the statement of the lawmakers.
According to him, MTN Nigeria should be made to pay the actual fine without any form of reduction if they want to remain in Nigeria to do their business, and that the next foreign company that should be compelled by the lawmakers to adhere to the laws of the land is MultiChoice.
Another concerned industry stakeholder who does not want to be named said that there was no need for the NASS to issue the threat because “the decision to reduce the fine is in the best interest of our country.”
He said that reduction was one of the most brilliant move by the President Mohammadu Buhari led government urging members of “the House of Representative to stop seeking for unnecessary attention and concentrate on their legislative duties and allow the NCC regulate the industry the best way possible, except they are saying that MTN should leave Nigeria for them.”
President of the Programos Software Group, Mr. Emmanuel Amos said that fines are bad signs in the first place particularly as it relates to foreign directive investment for a sector that is highly capitally intensive, and that it is not just wrong of an operator alone but for the growth of the sector.
He said that although the issue should not generate such discourse, he noted that the regulator will not become a saint overnight in the compromise it caused in the first place by granting such reduction to the violator of the regulatory statues of the industry.
“They should rather ensure the system is better regulated and respected by these foreign investors who have joined the corruption band wagon of beating the system with reduced service quality offering at the expense of the masses”, Amos said.
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