By InvestAdvocate
Lagos (INVESTADVOCATE)-South African telecoms firm, MTN Group has offered $1.5 billion to settle a $3.9 billion fine slammed on it by the Nigerian Communications Commission (NCC) for not complying with the deadline to disconnect unregistered SIM card users, according to a Reuters reporting quoting a document sighted.
MTN has been negotiating with Nigerian authorities to have the $3.9 billion fine reduced and paid the sum of $250 million in “good faith” towards a settlement.
According to the report, Eric Holder MTN’s lawyer and former U.S. Attorney General in a letter to the Nigerian government, the telecoms firm proposed a N300 billion ($1.5 billion) settlement to be paid through a combination of government bond purchases, cash installments and network access to the Nigerian government.
Reuters quoted Holder as saying in the letter, dated Feb. 24, the offer “ultimately is in the best interest of the FGN (Federal Government of Nigeria) and MTN Nigeria.”
MTN said on Friday talks with the Nigerian government were ongoing.
“MTN has previously advised shareholders not to make decisions based on press reports and MTN again urges its shareholders to refrain from doing so,” it said.
According to the report, the south African telecoms giant had in its annual results last week, disclosed it had put aside $600 million to cover a deal over the fine, which was originally set at $5.2 billion on the basis of charging $1,000 for every unregistered SIM card.
Nigerian authorities’ had issued a deadline on mobile operators to cut off unregistered SIM cards, which MTN failed to comply, amid fears the lines were being used by criminal gangs, including militant Islamist group Boko Haram.
