Business

Illegal Repatriation: CBN directs MTN to refund $8bn, slams N6bn fine on four banks

 

The Central Bank of Nigeria (CBN) has ordered telecommunication giant, MTN to refund $8 billion for illegally repatriating funds,.

The apex bank also slammed heavy sanctions on four Money Deposit Banks (MDB) totaling N5.87 billion for what it described as ‘flagrant violation of extant laws of the Federal Republic of Nigeria.

The CBN’s Director of Corporate Communications, Mr. Isaac Okorafor, announced the bank’s decision on Wednesday, listing the four sanctioned banks as Standard Chartered which was fined N2.4 billion, Stanbic IBTC, N1.8 billion, Citibank, N1.2 billion and Diamond Bank N0.25 billion.

The banks’ actions, he said, contravened the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006’.

Okorafor said that the actions of the CBN became necessary following allegations of remittance of foreign exchange with irregular Certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited and subsequent investigations carried out by the apex bank in March 2018.

“The CBN has therefore asked the Managements of the banks and MTN Nigeria Communications Limited to immediately refund the sum of $8,134,312,397.63, illegally repatriated by the company to the coffers of the Central Bank of Nigeria,” Okorafor said.

 

[penci_blockquote style=”style-2″ align=”none” author=””]The CBN investigation further revealed that on account of illegal conversion of MTN shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by the company.[/penci_blockquote]

The CBN Spokesman further disclosed that the decision of the Bank followed thorough investigations by it into the allegations of remittances by the four banks of forex with irregular certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited.

According to him, the investigations revealed that the sum of $3,448,119,321.72 was repatriated by Standard Chartered Bank on the basis of the illegally issued CCIs.

Similarly, he said the sums of $2,632,005,623.78, $1,766,263,212.75 and $348,914,501.30 were repatriated by Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc, respectively during the period 2007 and 2015.

Accordingly, he said the CBN had directed the affected banks to immediately refund the respective sums to the CBN.

The CBN investigation further revealed that on account of illegal conversion of MTN shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by the company.

While disclosing that the investigations by the CBN took a while in order to carry out thorough inquiry and give fair hearing to all parties involved, Mr. Okorafor advised all banks and multinational companies in Nigeria to adhere strictly to the provisions of all extant laws and regulations of Nigeria in their foreign exchange transactions.

 

[penci_related_posts taxonomies=”undefined” title=”Online Related Posts” background=”” border=”” thumbright=”no” number=”4″ style=”list” align=”none” displayby=”recent_posts” orderby=”random”]

He warned that the management of banks and companies which failed to abide by the existing guidelines would be appropriately sanctioned, which sanctions may include denial of access to the Nigerian foreign exchange market.

A similar sanction had been imposed on the MTN in the past by a federal government agency for contravening the country’s extant laws.

In 2015 the multinational telecom company came under the big stick of the Nigerian Communications Commission (NCC) for failing to meet the deadline for the disconnecting the Subscribers Identification Modules SIM with improper registration.

It was discovered that MTN had failed to properly register 5.2 million SIM cards. As a result, the NCC slammed a fine of N200,000 every unregistered SIM according to the provision of the law, which amounted to $5.2 billion.

The MTN took the Federal Government and its agency, the NCC to court to quash the fine, a case the MTN eventually withdrew for an amicable out of court settlement.

Following months of back and forth on the matter, the fine was reduced from $5.2 billion to $1.7 billion which was calculated to amount N330 billion to be paid for three years until the complete payment.

Comment With Facebook

Comments (66)

  1. What a stuff of un-ambiguity and preserveness of valuable experience about unexpected emotions.

  2. I like the helpful information you provide in your articles. I’ll bookmark your weblog and check again here frequently. I am quite sure I’ll learn lots of new stuff right here! Best of luck for the next!

  3. if you like diamond earrings, you can look on the internet for other designs that would suit you”

  4. I believe you have remarked some very interesting details , thankyou for the post.

  5. One more issue is really that video gaming became one of the all-time most important forms of fun for people of nearly every age. Kids engage in video games, and also adults do, too. The particular XBox 360 has become the favorite games systems for those who love to have hundreds of video games available to them, and also who like to play live with others all over the world. Thanks for sharing your notions.

  6. Hello there, just became aware of your blog through Google, and found that it is truly informative. I am gonna watch out for brussels. I will appreciate if you continue this in future. Numerous people will be benefited from your writing. Cheers!

  7. I would like to thank you for the efforts you have put in writing this website. I’m hoping the same high-grade web site post from you in the upcoming as well. Actually your creative writing abilities has encouraged me to get my own website now. Actually the blogging is spreading its wings quickly. Your write up is a great example of it.

  8. We are a group of volunteers and opening a new scheme in our community. Your site offered us with valuable info to work on. You have done an impressive job and our whole community will be thankful to you.

  9. This writing article support review is basically standard. This review is extremely useful to students accumulated some essay writing details for good essay. Such a essay writing articles are extremely impressive in order to viewers. Thank you pertaining to sharing your notions. anchor |

  10. I found your this post while searching for information about blog-related research … It’s a good post .. keep posting and updating information. advice |

  11. You made some decent points there. I looked on-line to the problem and found most individuals goes in conjunction with with all your internet site.

  12. Great post. I will be going through a few of these issues as well..

  13. Man that was very entertaining and at the same time informative.~,*~~

Comment here