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MTN to challenge Nigeria fine in court

17 December 2015, 18:34Mthulisi Sibanda

Johannesburg - MTN is taking the legal route in its efforts to have its landmark fine imposed on its Nigeria subsidiary reviewed.

The company said, acting on legal advice, it had resolved that the manner of the imposition of the fine and the quantum thereof was not in accordance with the Nigeria Communications Commission’s powers under the Nigerian Communications Act.

MTN therefore argued there were 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,” the company stated from Johannesburg.

Also read: SA minister speaks on MTN's Nigeria fine

MTN said it was 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 was finally determined.

“This is consistent with previous judicial decisions in Nigeria,” the company said.

MTN said 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.”

NCC fined MTN Nigeria N1,04 trillion (US$5,2 billion) for failure to disconnect over 5 million unregistered subscribers.

– CAJ News

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- CAJ News


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