MTN To Challenge $3.9bn Fine By Taking NCC To Court

MTN will challenge the $3.9 billion fine imposed on it by the
Nigerian Communications Commission (NCC).

MTN, in a statement to shareholders today, said it decided
to take this route after exhausting all other options to have
the fine reduced.

MTN said that "All factors having a bearing on the matter
have been thoroughly and carefully considered, including a
review of the circumstances leading to the fine and the
subsequent letters received from the NCC."

"MTN Nigeria, acting on legal advice, has resolved that the
manner of the imposition of the fine and the quantum
thereof is not in accordance with the NCC's powers under
the Nigerian Communications Act and therefore there are
valid grounds upon which to challenge the fine."

According to Reports, MTN has told its
lawyers to "proceed with legal action in the federal high
court in Lagos to seek the appropriate relief."

The group added that they have been advised that "in the
current circumstances, in line with the lis pendens rule
(pending legal action), the parties are enjoined to restrain
from taking further action until the matter is finally
determined. This is consistent with previous judicial
decisions in Nigeria."

Although MTN has been given until December 31, 2015 to
pay the fine in full, the group maintains that they will
"continue to engage with the Nigerian authorities to try and
ensure an amicable resolution in the best interests of the
company, its stakeholders and the Nigerian authorities."

Earlier in the month, the NCC agreed to reduce the fine from
$5.2 billion to $3.9 billion, although initial reports claimed in
error that the fine was reduced to $3.4 billion.

The former group CEO, Phuthuma Nhleko is acting as
executive chairman while still taking on CEO responsibilities
until a replacement is found.