MTN hires former US attorney-general to fight Nigeria case
Wed Feb 03, 2016 03:22:pm Business
3.2K By sosa hills
MTN has engaged Eric Holder, the former US attorney-general, to help challenge a $3.9bn fine imposed by Nigerian regulators for the company's failure to disconnect unregistered mobile phone subscribers.
Mr Holder, who returned to Washington-based corporate law firm Covington and Burling after standing down as attorney-general in April, made an initial visit to Abuja last month to plead with senior Nigerian officials on behalf of the South African telecoms group, according to people familiar with the situation.
A person close to the talks said MTN still expected to face a large penalty, but was encouraged by a court ruling last week in Lagos giving it until March 18 to reach a settlement. "What they are trying to do is not only come up with a more realistic number that can be paid but also reset the relationship [with government] on a new footing and restore a sense of trust," the person said.
Umar Danbatta, executive vice-chairman of the Nigerian Communications Commission, said there was no intention to "kill" the company and that the commission would be working towards an "amicable settlement".
However, the final decision rests with President Muhammadu Buhari.
It will be recalled that MTN Nigeria was originally given a fine of $5.2 billion in October, 2015, and after weeks of lobbying by the telecom company, the fine was reduced by 25 percent ($3.9 billion).
Still not satisfied, the telecom giant approached a Lagos High court in December to quash the fine, arguing that the regulator had no legal grounds to impose such penalty.
After hearing the case, the presiding judge in January gave the two parties a two month period to settle out of court .
However, effort to confirm the development from MTN spokesperson did not yield result.
Mr Holder, who returned to Washington-based corporate law firm Covington and Burling after standing down as attorney-general in April, made an initial visit to Abuja last month to plead with senior Nigerian officials on behalf of the South African telecoms group, according to people familiar with the situation.
A person close to the talks said MTN still expected to face a large penalty, but was encouraged by a court ruling last week in Lagos giving it until March 18 to reach a settlement. "What they are trying to do is not only come up with a more realistic number that can be paid but also reset the relationship [with government] on a new footing and restore a sense of trust," the person said.
Umar Danbatta, executive vice-chairman of the Nigerian Communications Commission, said there was no intention to "kill" the company and that the commission would be working towards an "amicable settlement".
However, the final decision rests with President Muhammadu Buhari.
It will be recalled that MTN Nigeria was originally given a fine of $5.2 billion in October, 2015, and after weeks of lobbying by the telecom company, the fine was reduced by 25 percent ($3.9 billion).
Still not satisfied, the telecom giant approached a Lagos High court in December to quash the fine, arguing that the regulator had no legal grounds to impose such penalty.
After hearing the case, the presiding judge in January gave the two parties a two month period to settle out of court .
However, effort to confirm the development from MTN spokesperson did not yield result.
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