Senate Rejects MTN’s N300 bn Settlement Deal
The Senate Committee on Communication yesterday rose against the manner in which the out- of- court settlement arrangement between the Federal Government and the MobileTelecommunication Network (MTN) on the N1.04trillion was being handled by the duo at the exclusion of Communication Ministry and Nigeria Communication Commission(NCC) in the deal.
At the Public investigative hearing on the matter that was convened by the Committee at the National Assembly Thursday, members of the committee expressed shock that an account in the name of “Recovery Account” was opened for the N50billion fine paid by the MTN as part of the negotiation.
The committee was also angry that a proposal initiated by the MTN for the reduction of the fine from N1.04 to N300 billion had been accepted by the Minister of Justice and Attorney General of the Federation even without recourse to the Ministry of Communication and the NCC.
It also emerged at the hearing that an initial 25 per cent reduction of the initial N1.04 trillion fine to N780 billion was on the orders of the President.
A document displayed by the committee regarding the proposal from MTN showed that the telecommunication service provider would pay N300 billion made up of N150 billion to be paid on instalmental basis.
According to the document, the N50 billion already paid is part of this anount.
The parties have agreed that the N50billion paid in good faith and without prejudice by MTN Nigeria on the 24th of February, 2016, in order to commence settlement negotiations will form part of the monetary components of this settlement.