The lingering case between telecoms giant, MTN Nigeria, and the Central Bank of Nigeria (CBN), is far from being over very soon, as the Federal High Court in Lagos on Tuesday fixed December 4, 2018, for hearing in the suit filed by MTN Nigeria Communications Limited to challenge the $8,134,312,397.63 demanded by the country’s apex bank over alleged forex remittances.
At Tuesday’s proceedings in the case, MTN was represented by Chief Wole Olanipekun (SAN), who led 14 other lawyers, including Prof Fabian Ajogwu (SAN), Mr. Damian Dodo (SAN), Mr. Adeniyi Adegbonmire (SAN), and Mr. Bode Olanipekun (SAN).
On the CBN legal team were Messrs Seyi Sowemimo (SAN) and Ademola Akerele (SAN).
The Attorney General of the Federation, Mr. Abubakar Malami (SAN), who was joined as the 2nd defendant in the suit was absent and was not represented in court.
While adjourning the suit till December 4, 2018, for the hearing of all pending applications, Justice Saliu Saidu directed that hearing notice should be served on the Attorney General of the Federation.
In the suit, marked FHC/L/CS/1475/2018, MTN is seeking a court declaration that it is “not liable to refund $8,134,312,397.63 to the coffers of the 1st defendant (CBN) premised on the decisions reached in the 1st defendant’s letter of 28/8/2018.”
The telecommunications giant is urging the court to declare that “the 1st defendant’s decision in its letter of August 28, 2018 with Ref No GBD/GOV/COM/DGF/118/121 addressed to the plaintiff and titled, ‘Investigation into the remittance of foreign exchange on the basis of the illegal capital importation certificates issued to MTN Nigeria Communications Limited’ was reached in breach of the plaintiff’s right to fair hearing.”
The firm wants Justice Saidu to hold that the CBN “lacks the power to determine the civil obligations or penal liabilities of the plaintiff.”
It is urging the court to declare that the CBN acted ultra vires its statutory powers when it wrote the August 18 letter to it demanding a refund of $8.1 billion.
The firm wants the court to hold that the $8.1 billion demand was “illegal, oppressive, abusive, unauthorised and unconstitutional.”
It also wants the court to void the September 3, 2018 letter written to it by the AGF demanding $8.1 billion as “penalties for the offence of ‘infraction of forex remittances’.”
Since the imbroglio began, MTN Nigeria has denied any improper repatriation of funds, after the Central Bank of Nigeria (CBN) ordered the return of $8.1 billion it alleged the operator illegally moved out of the country.
MTN said it received a letter on August 26 from CBN, alleging that Certificates of Capital Importation (CCIs) issued in respect of the conversion of shareholders loans in MTN Nigeria to preference shares in 2007 had been improperly issued. As a consequence, it claims that historic dividends repatriated by MTN Nigeria between 2007 and 2015 amounting to $8.1 billion needs to be refunded to the CBN.
The mobile operator said no dividends have been declared or paid by MTN Nigeria other than pursuant to CCIs issued by its bankers and with the approval of the CBN, as required by law.
MTN said the issues surrounding the CCIs have already been the subject of a thorough enquiry by the Senate. In September 2016, the Senate mandated the Committee on Banking, Insurance and other Financial Institutions to carry out an investigation on compliance with the foreign exchange (monitoring and miscellaneous) Act by MTN Nigeria and others.
In its report issued in November 2017, it found that MTN Nigeria did not collude to contravene forex laws, and there were no negative recommendations made against the mobile company.
MTN Nigeria said the re-emergence of these issues is regrettable, as it damages investor confidence and inhibits the growth and development of the Nigerian economy. MTN had posited that it will engage with the relevant authorities and vigorously defend its position on this matter and give more information when available.
The post MTN Hires 15 Lawyers To Challenge CBN $8.1bn Demand appeared first on Independent Newspapers Nigeria.
Source: Daily Independent
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Title :
MTN Hires 15 Lawyers To Challenge CBN $8.1bn Demand
Description : The lingering case between telecoms giant, MTN Nigeria, and the Central Bank of Nigeria (CBN), is far from being over very soon, as the Fed...
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