- The Senate on Wednesday exonerated telecommunications giant MTN Nigeria of illegally repatriating $13.92 billion to its headquarters in South Africa between 2006 and 2016.
In September last year, the upper legislative chamber agreed to investigate whether Africa’s biggest telecoms firm unlawfully repatriated $13.92 billion from Nigeria – its most lucrative market which generates a third of its revenue – between 2006 and 2016.
But in July, the apex legislature rejected an earlier version of the report, asking the committee to carry out extensive work.
Wednesday’s report, which was signed by 10 of the 13-member panel, also rebuked the CBN for its failure to monitor fund transfers to and from the country.
“The Committee condemns the Central Bank of Nigeria (CBN) for failing in its duty to bring forth those observed deficiencies of FEMMA for amendment rather than granting extensions and exemptions which became prone to abuses. It directs the CBN to forthwith render periodic status reports to Senate on the performance of foreign investments inflows and outflows,” the report seen by BusinessDay stated.
It also mandated the CBN to come up with a proposal for the amendment of FEMMA with a view to ensuring the growth of the economy through massive foreign capital inflow and greater retention of foreign exchange.
Presenting the report, Chairman of the committee, Rafiu Ibrahim (APC, Kwara State) observed that Stanbic IBTC admitted to improper completion and inadequate information on remittances and capital repatriation for dividends and loans.
He pointed out that as shown in the schedule of remittances provided by the bank, remittances were carried out without documentations, supporting documents and evidence of capital repatriation and loan payments.
The report also observed that some of the contraventions were due to poor institutional supervision, systemic lapses and gaping opportunity for the rational investor to exploit.
Jumoke Akiyode-Lawanson & OWEDE AGBAJILEKE, Abuja
