The House of Representatives on Monday resolved to conduct fresh and thorough investigation into allegation bothering on the gross mismanagement of defunct Etisalat Telecommunication company.
Saheed Akinade-Fijabi, chairman, House Committee on Communication disclosed this at the National Assembly complex, Abuja during an investigate public hearing into the collapse of Etisalat (now 9mobile) in order to protect the interests of Nigerian subscribers and other shareholders.
“Due to these, we resolved to invite the former directors who resigned sometime in June last year.
According to the CAC 7A document read during the investigate public hearing, the seven Board members are: Hakeem Bello-Osagie (chairman), Serkan Okandan,
Munir Barakat, Mohammed Suraj, Sinisa Papp, Muhannad Sudki Kamel Qudar and Haten Dowidai, who resigned on June 2017 while one resigned on the 31st June, 2017 respectively.
According to Lara Ogunlaja, Head, Corporate Affairs for Guaranty Trust Bank who spoke on behalf of the 13 Syndicate Banks which gave over N500 billion to Etisalat, noted that as at the time the Lending Banks offered to restructure the facility in 2015, which was turned down by Etisalat management, the company’s entire capital had been completely eroded by its consistent losses over the years of mismanagement.
She further explained that the January, 16th 2018 date was the referenced date for all the bidders for 9mobile to submit their binding bids, not the deadline for the conclusion of the sale process.
“Due to gross mismanagement, the company began to experience serious financial difficulties from 2015, exacerbated by the downturn in the Nigerian economy as well as the devaluation of the naira.
“These developments eventually rendered the company unable to meet its debt obligations to the lenders. The lenders were willing to restructure the debt in a manner that would ensure the sustainability of the company.
“However, the company willfully elected not to rake advantage of the restructuring opportunity provided by the Lenders, thereby further worsening the company’s financial situation. It should be emphasized that, by that time, the company’s entire capital had been completely eroded by its consistent losses over the years of mismanagement,” Ogunlaja told the lawmakers.
According to her, the Syndicate Group who dismissed the misgivings in the reports in the public space, explained that the “erstwhile directors and shareholders of the company had subjected the Lenders to incessant threatens to shut down the company’s operations during the restructuring negotiations.
While noting that the final take-over of the company and subsequent appointment of interim Board and management of 9mobile was the last resort, she argued that the “Lenders have no interest or inclination whatsoever to own or operate a telecommunications business. With a huge sense of responsibility, all the Lenders want is our depositors’ funds and we humbly request the committee’s appreciation as well as support of this fundamental quest.”
Ogunlaja also informed the lawmakers that the EMTS had earlier obtained approval from Nigerian Communication Commission (NCC) to use the company’s assets, licenses and the entire shares in the company as security as part of the conditions for obtaining the credit facilities since 2009.
While clarifying issues during questions and answer session from the lawmakers, Ogunlaja who observed that the EMTS management subjected the lenders to series of threats, however argued that the alleged ‘mismanagement’ alluded to does not necessarily alluded to ‘fraud’.
Speaking earlier, Umar Dambatta, Executive Vice Chairman of Nigerian Communication Commission noted that the Court order which nullifies the interim Board of 9mobile has not been vacated.
Dambarta who arguer that the intervention of Central Bank of Nigeria was widely applauded, noted that the initiative was aimed at salvaging monumental collapse of the Nigerian economy as well as protect the interests of 4,000 Nigerian workers and about 18 million subscribers.
On her part, Yetunde Akinloye, NCC Legal Department explained that the sale of Etisalat (now 9mobile) was nor handled by NCC, but the financial adviser, Barclays Africa.
She confirmed that part of the functions of the sacked interim Board of 9mobile was to oversee the process for the sale of 9mobile.
According to her, NCC has a list of criteria that all the prequalified bidders must meet otherwise they will be disqualified in the case of anti-competition, adding that the Commission will look at the profile of all the bidders after Barclays Africa has concluded the financial aspect of the ongoing sales.
In a swift reaction to her submission, Ossai Nicholas Ossai, member of the Committee argued that section 26 of the NCC Act, Subsidiary legislation empowers the Commissiin to be involved in the merger, acquisition and take-over process of any telecom companies in Nigeria.
He also frowned at the likely delay that may truncate the sale process of 9mobile if the Commission eventually observed inconsistencies in the process of selecting the highest bidder.
In his intervention, Kehinde Odeneye (APC-Ogun) who frowned at the NCC’s submission that it was not involved in the ongoing sale of 9Mobile, urged 9Mobile to give the Committee necessary documents on the ongoing transaction in confidence
On his part, Diri Douye, emphasized the need to interface (in camera) with Barclays Africa in order to ensure that best practice is adopted and avoid another pitfall in the exercise.
While ruling, Akinade-Fijabi mandated the interim management of 9mobile to give the Committee, all the contact addresses and phone numbers of all management staff of the defunct Etisalat.
He also called for submission of relevant evidences on the threat allegedly issued by the Etisalat management, that led to the resignation of the six directors of Etisalat management.
According to him, all the way invited stakeholders former Chairman and Directors of defunct Etisalat as well as Godwin Emefiele, CBN Governor are expected to appear before the Committee on Tuesday, 23rd January, 2018.
KEHINDE AKINTOLA, Abuja
