[ 2016-10-21 ]

MTN illegally transferred 'mind boggling' sum out of Nigeria
he amount of money which South Africa's MTN Group
is alleged to have illegally moved out of Nigeria
is "mind boggling", a Nigerian lawmaker said on
Thursday at the start of a parliamentary
investigation into the telecoms company.

He did not specify what the alleged amount might
be.

Nigeria's upper house of parliament agreed last
month to investigate whether the company
unlawfully repatriated $13.92 billion between 2006
and 2016.

MTN shares fell 3.2 percent to more than six-year
lows after Bloomberg quoted a senator as saying
the amount could be "outrageously higher". The
shares later pared some losses.

The accusations of illegal money transfers were
denied by MTN Nigeria Chief Executive Ferdi
Moolman, who appeared at the hearing.

"MTN categorically denies all suggestions that its
bankers in strict violation of the FEMM Act
(Foreign Exchange (Monitoring and Miscellaneous
Act) and Foreign Exchange Manual, repatriated
$13.92 billion illegally out of Nigeria," said
Moolman.

The allegation is the latest setback for Africa's
biggest telecoms firm in its most lucrative but
increasingly most problematic market, coming
months after it agreed to pay a greatly reduced
fine of 330 billion naira ($1.08 billion) to end a
long-running dispute over unregistered SIM cards.

MTN officials, Nigeria's trade minister and four
lenders were due to appear at the parliamentary
hearing, which started on Thursday.

"It is not what we can sweep under the carpet. We
intend toget to the bottom of the fact, all of the
fact, nothing but the fact," said Olusola Adeyeye,
a senator, reading out a statement from Senate
leader Bukola Saraki, said at the start of
hearing.

Dino Melaye, the senator who first made the
allegations in a motion passed by lawmakers last
month, said he raised the issue "as a patriotic
Nigerian, a whistle blower and an anti-corruption
crusader", adding that he stood by the
allegations.

MTN is the largest mobile network operator in
Nigeria, Africa's most populous nation and has the
continent's biggest economy. The country accounts
for a third of MTN's revenue.It follows a row
between South African hotel and gaming group Sun
International and Nigeria's Economic and Financial
Crimes Commission over its investment in a hotel
operator in Lagos. The disagreement caused Sun
International to pull out of Nigeria in August.

Rafiu Ibrahim, chairman of Nigeria's senate
investigative panel on alleged illegal
repatriation of funds, said on Wednesday that a
team of international and local accountancy
experts and lawyers had been assembled to look
into the matter.

"Investors are nervous with what's happening with
Nigeria purely because the past history has shown
us that typically the government tends to move the
goal posts," Independent Securities trader Ryan
Woods said.

($1 = 304.5000 naira)

Source - Reuters

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