$13.9bn illegal repatriation: MTN explains why it defied the law
The nation’s leading telecommunications company MTN, accused of illegally repatriating $13.9 billion from Nigeria, said in a statement on Friday that it failed to comply with the law requiring issuance of Certificates of Capital Importation (CCIs) within 24 hours of conversion because it was an administrative requirement.
According to MTN Nigeria’s Chief Executive Officer (CEO), Ferdi Moolman, it was practically impossible for the company to comply with the 24 hours required to issue the CCI before moving funds.
He spoke further: “The requirement to issue a CCI within 24 hours of conversion is an administrative requirement”.
“As such, the CBN has the authority, and indeed we believe approved the banks’ applications to issue CCIs outside the recommended time frame.
“Often, for various reasons (such as not having all the required documentation for instance), it is not possible to issue a CCI within 24 hours, and the Central Bank of Nigeria’s Forex Manual contemplates such situations by asking that the banks refer to the CBN for approval.”
He said no dividends were declared or paid until the CCIs were issued and finalised, adding that MTN Nigeria only requested for CCIs for Foreign Capital that was imported into Nigeria, and dividends were externalised on CCIs.
The company equally explained at the opening of investigative hearing by the Senate into the transfer that circumstances beyond its control necessitated the decision to move funds without following the law.
It would be recalled that the senator representing Kogi West in the National Assembly, Mr. Dino Melaye, on September 27 accused MTN of outsmarting the Nigerian financial regulatory laws to obtain a CCI within 24 hours before moving the money out of the country without the required authorisation.
The CCI is a requirement under the Central Bank of Nigeria (CBN) Financial and Miscellaneous Provisions Act.
Melaye said the repatriation was carried out between 2006 and 2016 in connivance with the Minister of Trade and Investment, Okechukwu Enelamah, and four commercial banks, namely Standard Chartered Bank, Stanbic IBTC, Diamond Bank and Citi Bank.
