By Ezrel Tabiowo
Abuja
The offices of the Attorney-General of the Federation (AGF), Accountant General of the Federation (OAGF) and the Central Bank of Nigeria (CBN), yesterday came under fire in the Senate over alleged fraud unearthed in connection to the payment of N1.04trillion fine slammed on MTN by Nigerian Communication Commission ( NCC).
According to the Senate Committee on Communications, rather than allow NCC, the body responsible for imposing the fine on MTN, enforce its compliance, the three offices circumvented the earlier agreement entered into by reaching a different arrangement of N300billion payment by the communication company.
The said sum, the Senate disclosed, was paid into a special recovery account, a development which the committee pointed was in clear violation of the Treasury Single Account regime (TSA) of the present administration.
The revelations came to the fore yesterday during an investigative session the committee had with the three offices, including MTN, Federal Ministry of Communications and NCC on controversies surrounding the fine.
Executive Vice Chairman of the Commission, Professor Umaru Danbaba told the committee that the fine to be paid by MTN is N780billion now, after granting a waiver of 25% on the earlier fine as approved by the Presidency, the Attorney – General of the Federation, Accountant General and representative of CBN, gave a conflicting submission anchored on new proposal by MTN.
The proposal as tabled before the committee by the representative of the Attorney- General of the Federation, Dayo Apata, entails payment of N300billion as against N780billion, out of which tranche of N50billion have been paid by MTN into a special recovery account opened by the office of the Accountant – General of the Federation with the CBN at the instruction of the Attorney- General of the Federation, Abubakar Malami.
As stated in the 13-page document titled: “Re: Settlement Proposal From MTN Nigeria in Respect of Fine Imposed By NCC against It”, and signed by Solicitor- General of the Federation and Permanent Secretary, Federal Ministry of Justice, Taiwo Abiodun , on behalf of the AGF, Abubakar Malami, the N300billion is to be paid in tranches from this year till December 31st 2020.
The settlement proposal agreement made by MTN in respect of the N300billion reads in part: “The parties have agreed that the N50billion paid in good faith and without prejudice by MTN Nigeria on 24th February 2016, in order to commence settlement /negotiation, will form part of the monetary empowerment of this settlement.
“In five equal and annual installments between the date of execution of this agreement and 31st December 2020, MTN Nigeria, shall pay a total of N100billion by electronic fund transfer to the federal government recovery account of the Central Bank of Nigeria.
These payments will commence by 31st December 2016 and be made by 31st December of each subsequent year”.
MTN further explained in the N300billion payment proposal that the remaining N150billion will be used for participation in sovereign bond purchase and provision of access to fibre network.
According to it, its participation in sovereign bond purchase was as a demonstration of its commitment to and confidence in the Nigerian economy and subject to necessary regulatory approvals.
