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MTN Fine Hearing Postponed So Parties Can Try Settle Out Of Court

MTN Fine Hearing Postponed So Parties Can Try Settle Out Of Court

A Nigerian court today postponed a Jan. 22 hearing on the $3.9 billion fine imposed on South African mobile provider MTN by the Nigerian telecommunications regulator so the parties can try to settle out of court, BizTechAfrica reported.

Nigeria’s — and Africa’s — largest mobile operator, MTN and the Nigerian regulator have been “finding it difficult to settle out of court,” PunchNG reported.

The hearing has been adjourned to March 18.

The Nigerian Communications Commission in October imposed a $5.2 billion fine – the largest ever in Africa – on MTN for failing to register all unregistered SIM-card holders. MTN missed its Dec. 31, 2015 deadline to pay the fine.

The fine has since been reduced 25 percent to $3.9 billion.

Earlier this month, MTN scored a victory in court when it persuaded a local judge to prevent the Nigerian government from freezing its bank accounts, Quartz reported.

Nigerian authorities may have good reason to be anxious about MTN’s movement of funds, Quartz reported. In October, a South Africa-based investigative journalism organization, amaBhungane, published a story with Finance Uncovered, a global network of journalists, alleging MTN was moving millions of dollars from its subsidiaries in Nigeria, Uganda, Côte d’Ivoire and Ghana to companies in Mauritius and Dubai to avoid paying taxes.

Cameroon also claims MTN owes it money. It was billed $88.8 million US in taxes and royalties by the national anti-corruption commission in Cameroon, Mybroadband reported.

Together, France-based mobile operator Orange and MTN allegedly owe Cameroon nearly $165 million US in taxes, Reuters reported.

MTN recently acquired Visafone, Nigeria’s last remaining CDMA (code division multiple access) operator, in a bid to improve broadband capacity, Quartz reported.

CDMA is the primary type of technology used in the U.S. for cell phones, as opposed to GSM, or global system for mobile, which is used in most of the rest of the world.