The chairman of MTN Nigeria, Dr Pascal Dozie has said that all monies repatriated by telecommunications operator, MTN Nigeria between 2006 and 2016, were all in respect of payment of dividends and capital divestments. Dozie made this known in response to the allegations of unscrupulous violation of the foreign exchange laws levelled against the company by the Senate Committee on Banking. The boardroom guru denied all suggestions or allegations that the company’s bankers violated the FEMM Act and Foreign Exchange Manual, and repatriated $13.92 billion illegally out of Nigeria.
Stating his defence before the Senate Committee on Banking, Dozie said, “The allegation that MTNN illegally repatriated $13.92 billion out of Nigeria through its bankers between 2006 and 2016 are indeed weighty and factually incorrect. Nothing could be farther from the truth for a company that has actually invested over $16 Billion in Nigeria in a space of 10 years. Various MTN entities incorporated in different jurisdictions appear to have been confused. MTN Limited (“MTN”) is a company incorporated in South Africa and is the parent company of MTNN. MTN is however not a shareholder in MTNN and as such has not repatriated any funds out of Nigeria. MTN International (Mauritius) Limited (“MTNI”) is a company incorporated in Mauritius and is a shareholder in MTNN”.
“MTNN began operations in 2001.with $284,906,275.96, which was imported by investors in MTNN that was ultimately paid to NCC. Although a further $117,683,987 was imported by MTNN shareholders as investment in MTNN, the funds were imported in several tranches between 2001 and 2006. A total of $402,590,262.96 was imported into the Country for investment in MTNN by the MTNN shareholders. These monies were imported at several instances and not in three tranches “The capital was imported over a period of over 10 years via three banks – Standard Chartered Bank, Diamond Bank Plc and Nigeria International Bank (Citibank)”.
On issuance of certificates of capital importation, Dozie in defence of MTNN, argued that: “The allegations are completely false. MTN complied with extant laws and regulations. Requests for CCIs are continuing events – made as-and-when brought-in. The critical questions at this juncture are: Were foreign currencies imported into Nigeria through an authorized dealer by the providers of capital in MTNN?
“How much was imported by the providers of capital in MTNN and when was the foreign currency imported by the providers of capital in MTNN? All of these questions have been sufficiently answered in this response. It is our reasonable belief that Standard Chartered Bank Nigeria, as an entity regulated and supervised by the CBN, made the prescribed returns to the CBN within the prescribed time of receipt and conversion of the funds. We are not aware that the CBN has at anytime queried the bank for any default in this regard. As a Nigerian telecommunications company, MTNN is regulated by the NCC”.
On the use of special purpose vehicles and shareholders loans, he said, “No entity called MTN International South Africa exists as an incorporated entity. The shareholder loans referred to above were advanced to the Nigerian shareholders by MTNI. This was to empower Nigerians to participate in the huge capital intensive venture and investments. As a result of the large capital outlay of the company, MTNN required a significant amount of initial funding from its shareholders. It was also important that the Company has a broad shareholder base made up of several Nigerian investors”.
