|
Getting your Trinity Audio player ready...
|
Nigeria’s House of Representatives on Thursday alleged that the ongoing transaction on the sale of 9mobile was marred with irregularities.
The resolution of the House was sequel to series of allegations trailing the non-transparent of the bid process which led to the unilateral choice of Teleology as the preferred bidder of 9mobile, the House also summoned Godwin Emefiele, Governor of Central Bank of Nigeria (CBN), Umar Dambatta, NCC Executive Chairman; CBN Deputy Governor who serves as the chairman, Board of 9mobile as well as Directors and management of Teleology and other stakeholders who have interest in the sale of 9mobile to appear in person on Monday, 16th April, 2018 to clear air on their roles in the transaction.
Worried by the emerging development, the House Committee on Telecommunications chaired by Saheed Akinade-Fijabi directed Nigerian Communications Commission (NCC) to put on hold the ongoing transaction on the sale of 9mobile, pending the conclusion of its investigation into allegations bothering on breach of due process.
Akinade-Fijabi, who presided over the investigative public hearing into the collapse of Etisalat and huge indebtedness, chided NCC for failing to be involved in the entire process.
He alleged that Teleology is currently not registered in Nigeria, Akinade-Fijabi observed that similar situation played out in the ownership of Etisalat which has one percent share of EMTS which owned Etisalat.
In its presentation, representative of Smile, the reserved bidder who described the entire financial transaction as unfair and predetermined, alleged the process which was scheduled to end on the 26th February, 2018 was concluded on the 19th February, 2018 via a letter from the Financial Advisor, Barclays Africa.
“Somebody must have decided who will win the bid already,” Smile representative who was a former MTN Chief Executive Officer in Nigeria told the Committee.
The company which called for redress, further observed that the sum of $200 million was deposited in bank to compete favourably for 9mobile, and incurred $2 million for legal, accounting during the period under review.
According to Smile, the entire process was flawed by irregularities following the arbitrary change in the $50 million non-refundable fee which ought to be paid immediately, but shifted to 30 days contrary to the initial provisions in the bidding process.
It also noted that the balance of $450 million which ought to be paid within 60 days was extended to 90 days after the Financial transaction Adviser had written to Teleology as preferred bidder via a letter dated 17th February, 2018 and similar letter written to Smile as reserved bidder ahead of the submission of its bid document scheduled for 26th February, 2018.
On his part, Hasnen Varawalla, Barclays Africa Principal Partner, confirmed that 9mobile via a letter dated 18th February, 2018, communicated its intention to select Teleology as the preferred bidder of 9mobile, which was complied with without hesitation.
In his remarks, Haruna Musa, Executive Director of GTBank who spoke on behalf of the Consortium of Banks (Lenders) explained that Teleology was chosen based on the financial proposal submitted to pay the sum of $301 million as contained in its bid proposal.
He disclosed that the CBN Governor, Deputy CBN Governor who doubles as chairman of 9mobile, NCC Executive Chairman, and Teleology were all in attendance where the terms of the bid was presented ad approved.
He however noted that despite the fact that some of the banks objected to the process, the stakeholders later resolved to adopt the process in the interest of the banks’ depositors.
“As bankers, our key concern is getting our money back,” adding that ” the banks are careful to ensure repayment of the debts.”
He disclosed that submission were made by various interested parties including Teleology, Smile, Glo, Helios Investment ad Airtel but others didn’t submit financial bid.
According to him, the banks exposure was $935.900 million and N336.832 billion. He added that from the sum of $301 million to be paid by Teleology immediately, each of the banks will get 30% while Teleology will restructure the balance of N128 billion over eight years period.
While responding to questions, Oluseyi Osunsedo, who spoke on behalf of 9mobile Board, explained that over 40% of the $1.2 billion had been paid by the firm in 2017.
Also speaking, Gwa Mohammed, NCC’s Deputy Director on Legal and Regulatory, explained that the Commission was optimistic over the viability of the preferred bidder, adding that the Commission has not receive any formal agreement from the partners (IHS and 9mobile) on the mode of payment of the debt.
Mohammed added that the preferred bidder was expected to pay 50% of the undisputed debt but has not given approval for IHS to disconnect any operator.
While ruling, Akinade-Fijabi warned that anyone who mislead the Committee and the National Assembly in the cause of the investigation is liable on conviction to seven years imprisonment.
He also directed Barclays Africa to provide the letter issued by 9mobile Board to unilaterally select Teleology as the preferred bidder and Smile as reserved bidder.
Akinade-Fijabi who called for cooperation of all relevant stakeholders, urged them to appear at the next public hearing, stressing that: “we don’t want anybody to see National Assembly as holding back the sale of 9mobile.”
KEHINDE AKINTOLA, Abuja
