MTN Seeks Court Order Overturning $3.9 Billion Fine
Published on: 18th Dec 2015
Note -- this news article is more than a year old.
South Africa based MTN says that it is to appeal against the huge USD3.9 billion fine imposed on it by Nigeria's telecoms regulator back in October.
The fine saw the company's CEO resign, and was imposed following allegations that MTN's local subsidiary did not disconnect unregistered SIM cards in line with regulations.
The fine was initially set at USD5.2 billion, but later cut to US$3.4 billion, then raised to USD3.9 billion adding fuel to suspicions that the regulator was unsure about the validity of the fine in the first place.
Currently there remains a lack of clarity on both the method of calculation of the fine reduction and uncertainty as to whether management will be able to agree an altered payment structure or deadline for the fine.
"MTN Nigeria acting on legal advice has resolved that the manner of the imposition of the fine... is not in accordance with the NCC's powers," the company said in statement, adding that "There are valid grounds upon which to challenge the fine."
The case is expected to be heard at the High Court in Lagos.
"The company will continue to engage with the Nigerian authorities to try and ensure an amicable resolution," MTN added.