The
CBN had ordered the four commercial banks operated by MTN to suspend dividend
payout from Nigeria. The banks are Standard Chartered Bank, Stanbic IBTC,
Diamond Bank and Citi Bank. But CBN Spokesman, Isaac Okorafor, said yesterday
that he was not aware of the order.
The
crux of the allegation is 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 therefore the repatriation of returns on those investments was
illegal.
MTN
runs the biggest wireless phone network in Nigeria, which generates a third of
its annual sales. The telecoms firm had this year, agreed to pay a reduced fine
of N330 billion ($1.08 billion) to end a long-running dispute over unregistered
SIM cards in Nigeria.
The
South African firm has also delayed its long-awaited listing on the Nigerian
Stock Exchange (NSE), and no explanations from the firm or the exchange for the
delay.
Shares
in the company have fallen by more than 14 per cent to their lowest level in
more than six years since the latest issue surfaced on September 27.
But
shareholders, who spoke on the
development, criticised the CBN’s decision as high-handed, considering that the
dividend is shareholders’ benefits from their investment.
The
President, Renaissance Shareholders Association of Nigeria, Timothy Olufemi,
described the suspension of the dividend as ‘uncalled for,’ noting that
dividend declared is a debt that must be paid by the firm.
“Well,
the accusation may be due to payment of cash dividend to foreign shareholders
in dollars without due approvals. But, we do not see any reason for the
suspension of cash dividend if not that they have done something wrong. It is
uncalled for. Dividend must be paid when declared. It is a debt,” he said.
The
President, Ibadan Zone, Shareholders Association of Nigeria, Sola Abodunrin,
said: “If the dividend has been declared in an annual general meeting, MTN has
no right to suspend it. The investigation that is going on is a different thing
entirely. A dividend that has been declared must be paid.”
Similarly,
the President, Constance Shareholders Association, Shehu Mallam Mikail, who
explained that MTN has no right to suspend shareholders’ dividend, noted that
the telecoms giant is making profit and getting good returns from Nigeria.
He
urged the regulatory authorities to ensure that multinationals operating in
Nigeria complied with the rules so as to protect investors’ rights.
Mikail
noted that “The illegal transfers do not concern the issue of dividend payout
and MTN can only fish out those concerned in the transfer saga and it should
not stop the payment of dividend to shareholders because it is an investment.”
According
to the President, Association of Telecommunications Companies of Nigeria
(ATCON), Olushola Teniola, the CBN cannot stop a legally registered company
from declaring dividends or making dividend payments, unless there is evidence
of criminal activity or a court order stipulates this in rare cases.
But
the President, Ibadan Zone Shareholders Association of Nigeria, Sola Abodunrin,
believed the suspension should not affect MTN from listing next year as
planned.
According
to him, the agreement to list was part of conditions given when they were
negotiating a reduction in their fine, “so as a responsible company, I do not
think they will renege. Many Nigerians are looking forward to their listing.”
Timothy
Olufemi, however, believed strongly that the suspension would affect MTN’s
listing next year.
The
South African telecoms firm in the letter to its shareholders, confirmed that
“MTN Nigeria, four commercial banks, certain MTN Nigeria directors and
shareholders, the Central Bank of Nigeria and others appeared before the Senate
on October 20, 2016 at the outset of this investigation.
“The
allegations are that $13.97 billion was repatriated illegally by MTN Nigeria
through its bankers. MTN Nigeria and its bankers are cooperating with the
investigation with a view to resolving the matter as expeditiously as possible.
“In
the interim, the CBN has instructed the banks to suspend any remittance of
dividends until further notice. MTN Nigeria continues to refute the allegations
that MTN Nigeria had improperly repatriated funds from Nigeria.
“Consequently,
MTN Nigeria will strongly defend any action that would be prejudicial to its
interest. MTN Nigeria has no intention to make any dividend payments over the
next six months.”
Senator
Dino Melaye blew the lid that MTN in connivance with the Minister of Trade and
Investment, Okechukwu Enelamah, and four commercial banks exploited the
Nigerian financial system to illegally move $13.97 billion out of the country
without the required authorisation.
Source:The
Guardian
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Business