N1.4tn fine: MTN, NATCOMS urge court to nullify NCC suits

By Ali Smart . . .

MTN Nigeria Communications Limited along with the the Incorporated Trustees of National Association of Telecommunications Subscribers (NATCOMS) has urged the Federal High Court in Lagos to strike out a suit against it and the Nigerian Communications Commission (NCC).

NATCOMS through its president, Oluyinka Oyeniji sought an injunction restraining NCC from “exerting, enforcing and further imposing or enforcing any sanctions on the second respondent (MTN) especially the sum of N1.4trillion.”

NCC had imposed the fine over MTN’s alleged non-compliance with a directive to de-activate the lines of all unregistered GSM subscribers.

It later reduced the fine from $5.2billion to $3.9billion (about N777billion).

The plaintiff also sought to restrain MTN from making any payments regarding the N1.4trn penalty pending the determination of the Motion on Notice.

NATCOMS prayed for an order for parties to maintain status quo (which means nonpayment of any sanctions or penalty regarding the deactivation of subscribers pending the argument of the substantive suit).

Among others, the plaintiff sought an order mandating NCC to render documentary evidence of accounts showing the fines imposed on MTN and other telecommunications operators, including their appropriation and disbursement from 2002 till date.

But in a preliminary objection, MTN said the plaintiff lacks the locus standi (legal right) to institute the suit.

Besides, it said no reasonable cause of action was disclosed against it by the plaintiff.

MTN is praying the court to strike out the suit in its entirety with an award of substantial costs against the plaintiff.

According to MTN, the plaintiff is not the appropriate party to bring the suit as the fine was not imposed on subscribers but on the telecoms company.

“Therefore, the appropriate party to bring a suit founded on the constitutionality, legality or otherwise of the fine imposed on the applicant (MTN) is the applicant,” the company said.

The GSM company described the subscribers as “busy bodies” who have no standing to initiate the action.

“By this suit, the plaintiffs are crying more than the bereaved, in this case, the applicant. The applicant submits that the plaintiffs are meddlesome interlopers and busy bodies who dabble into affairs of others without invitation or any legal basis whatsoever,” MTN said.

In an originating summons, the plaintiff sought a declaration that both NCC and MTN are statutorily responsible for the registration of telephone subscribers based on NCC (Registration of Telephone Subscribers) Regulations, 2011.

It prayed the court to declare that NCC failed in its statutory duties to conduct monthly updates of the central database from 2011 till 2015, and to efficiently maintain it despite “huge sums” of money deployed.

Read also: N780bn fine: MTN drags NCC to court

The plaintiff asked the court to declare the N1.4trillion fine as illegal, unconstitutional, null and void because NCC cannot unilaterally impose and/or exert any fine on a telecoms firm without a court’s order after conviction for an infraction.

‎NATCOMS, which also sought N10million as cost of the action, wants to the court to hold that NCC cannot be a judge in its own case by imposing a fine on MTN.

The plaintiff sought orders mandating NCC to conduct monthly updates on the central database; to conduct rigorous campaigns for telephone subscribers to update their particulars; to apologise to subscribers for failing in its duties; to account for all the fines it had imposed on telecoms operators; and to utilise fines imposed upon conviction as compensation to telephone subscribers.

In a supporting affidavit, Oyeniji said subscribers had volunteered their details before now to the respondents. Besides, he said NCC has not accounted for previous fines.

“I am aware that the dispute resolution procedure of the NCC Act, 2003 have not been followed by the first respondent and the latter itself is culpable having failed to guarantee the integrity and incorruptibility of the Central Database from 2011 until the end of 2015,” he said.

MTN Nigeria, in a separate suit, is praying the Federal High Court, Lagos to quash the $3.9 billion sanction.

The action came as a lawyer, Abubakar Sani, in a separate suit, also asked a Federal High Court, Abuja to declare the fine unlawful.

The subscribers’ case has been adjourned till February 4 for mention before Justice Mohammed Idris.

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