MTN under fresh scrutiny in Nigeria – report
The Senate in Nigeria has reportedly withdrawn a document that largely absolves mobile operator MTN of accusations of illegally repatriating $14 billion.
The report, presented to the Senate late last week, was critical of the regulatory shortcomings of the Nigeria’s central bank, and was sent back for additional scrutiny, Reuters reported, citing two people familiar with the matter.
Nigeria’s parliament had decided to investigate whether MTN unlawfully repatriated $13.92 billion between 2006 and 2016.
“It is alleged that MTN did not obtain certificates declaring it had invested foreign currency in Nigeria within a 24-hour deadline stipulated in a 1995 law, and so the repatriation of returns on those investments was illegal,” Reuters said.
Under investigation were allegations against MTN and financial institutions including the Central Bank of Nigeria (CBN) and commercial banks such as Nigeria’s Stanbic IBTC Bank.
The report was critical of CBN’s monitoring of foreign exchange transfers, calling its oversight of banks “inadequate”. According to the report, the CBN’s duty is to correct and if needed sanction banks and their customers for any wrongdoing, which it never did, Reuters said.
Citing a person familiar with the process, Reuters said that senators did not understand why the report rebuked the central bank while largely ignoring MTN and commercial banks for their repatriations.
The document is a “poorly investigated report full of indecent holes”, the person told Reuters.
As a result, it has been “withdrawn for consultations and further legislative work”.
Reuters said that MTN, which has denied any wrongdoing, could not be reached for comment.
Read: MTN Nigeria refutes allegations of improper repatriation of funds
Loading ...