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JUST IN: CBN finally clears MTN of alleged illegal repatriation of $8.1bn

JUST IN: CBN finally clears MTN of alleged illegal repatriation of $8.1bn

The Central Bank of Nigeria has finally resolved its issues with telecoms giant MTN.

CBN had earlier accused MTN of illegally repatriating over $8 billion based on “illegally issued” CCIs by four commercial banks in the country with a period of eight years.

MTN, at the time, maintained that it didn’t breach any financial law.

Both parties, following drawn out meetings and negotiations, have now reached a peaceful resolution.

During the series of meetings which held in Lagos in November, the telecommunication company was able to provide additional documents to satisfactorily back its position that it did no wrong.

Following a review of the documents, CBN has come to a conclusion that MTN Nigeria will no longer be required to reverse the dividend payments made to its shareholders, though the apex bank also said the telecoms company’s private placement remittances of around $1 billion in 2008 were irregular as they didn’t go through CBN’s final regulatory approval.

MTN has agreed to resolve the minor issue with regards to CBN’s instruction that it should implement a notional reversal of the private placement of shares in the company at a cost of N19.2 billion ($52.6m), without admission of liability.

The reversal is said to be on the basis that certain Certificates of Capital Importation (CCIs) utilised in the private placement were not properly issued.

“In terms of the resolution agreement, the CBN will regularise all the CCIs issued on the investment by shareholders of MTN Nigeria of circa $402,625,419 without regard to any historical disputes relating to those CCIs, thereby bringing to a final resolution all incidental disputes arising from this matter,” a statement on the resolution read.

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MTN has also stated that it will engage the respective banks involved in the issue and arrive at an agreement.

The company, however, said its legal suit restraining the Attorney General of the Federation Abubakar Malami from taking further action in respect of its orders for back taxes is continuing.

The case against Malami was heard at the Federal High Court, Lagos on November 8, and was adjourned to February 7, next year.

MTN had also been accused by the FG and Malami of owing $2 billion in tax over a 10-year period, but the company maintains it had no pending taxes.

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