N1.4tn fine: NCC gives MTN Nov deadline

Even as the South African Stock Exchange (JSE) has launched a probe into the N1.4 trillion fine imposed by the Nigerian Communications Commission (NCC) on MTN Nigeria, the telecommunications regulator has given the telecoms company until November 16, 2015 to pay the fine or risk further sanctions.

The NCC had slammed MTN Nigeria with the N1.4 trillion fine for failing to register the personal details of 5.1 million subscribers.

However, a statement by MTN said its CEO is still in talks with the Nigerian authorities and that its senior management and advisers are also talking to JSE, after the announcement of the fine knocked around 20 percent off the company’s stock price.

A report quoted the spokesman for the NCC as saying that the outcome of the discussion may affect the deadline date.

The report also said Nigeria’s presidency and internal security agency are involved in the talks.

Read also: MTN share price drops as NCC slams N1.4trn fine on firm

“That’s why they are having the discussion so that they can reach a solution,” the spokesperson said.

Head of the JSE, Andre Visser, stated, that “the investigation will follow due process to establish whether there have been any breaches of the listings requirements and can be a lengthy process.”

Under South African capital markets rules, companies are required to immediately warn shareholders of price-sensitive information.

Meanwhile, the JSE investigation is to probe the possibility of insider trading in MTN in the aftermath of the heavy fine imposed on it by the NCC.

A statement by Peter Redman, Market Regulation Advisor to the JSE on Friday said: “The market regulation team is looking into trades that took place before the announcement in order to determine if there is any evidence of possible insider trading”.

“The investigation will follow due process to establish whether there have been any breaches of the listings requirements and can be lengthy process,” said Andre Visser, JSE regulation manager.

The probe could result in South Africa’s operator slapping MTN with another hefty fine or result in criminal charges.

Meanwhile, Fitch Ratings has revised MTN Group’s outlook to negative, owing “to the risk of a significant cash outflow due to a substantial fine imposed on MTN’s Nigerian operations, which could increase leverage and pressure MTN’s credit metrics.”

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