Senate clears MTN of $13bn illegal repatriation allegation

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The senate says it did not find proof that MTN contravened any foreign exchange law by taking a large sum of money outside the country.
In 2016, Dino Melaye, senator representing Kogi West district, hadĀ accused the telecommunications companyĀ of illegally taking $13.9 billion to its parent company in South Africa over a period of 10 years.
Melaye had said MTN transferred the funds through Stanbic IBTC, $4.87bn; Standard Chartered Bank, $5.72bn; Citi Bank, $2.98bn; and Diamond Bank, $0.35bn.
At its sitting on Wednesday, the senate said proof that MTN took large sums of money outside the country is not enough to say a crime was committed.
ā€œNo doubt there is a disturbing evidence of foreign exchange haemorrhage in Nigeria especially in the period of recession. MTN, for instance, repatriated over $1.3 billion annually since 2006 or $13.92 billion between 2006 and 2016,ā€ theĀ report approved by the senate read.
ā€œJust for one company, the phenomenon constitutes a huge outflow that could pose challenges for foreign exchange and national monetary stability.
ā€œThe committee did not receive proofs of collusion to contravene the foreign exchange laws. There was evidence of massive capital outflow, but that alone is not conclusive that a crime has been committed.
ā€œThis was relied on by banks, which claimed that despite regular audit by CBN, the CBN did not apply any sanction that a crime has been committed.ā€
The senate unanimously approved the recommendation of the investigation panel which are:
ā€œCondemn the CBN for failing in its duty to bring forth those observed deficiencies of FEMMA for amendment rather than granting extensions and exemptions, which became prone to abuses.
ā€œMandate the CBN to sanction Stanbic IBTC for improper documentations in respect of capital repatriation and loan repayments amounting to $388,195,183 and $199,440,952:07, respectively.
ā€œMandate the CBN to sanction the activities of Stanbic IBTC nominees in the matter of shares transfer and splitting for the purpose of dividend repatriation.
ā€œMandate the CBN to come up with a proposal for the amendment to FEMMA, with a view to ensuring the growth of the economy through massive foreign capital inflow and greater retention of foreign exchange. The amendment is still ongoing in the senate.
ā€œDirect the CBN to forthwith render periodic status reports to senate on the performance of foreign investments inflows and outflows.ā€

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