N1.4tr fine: Court directs service of papers on parties in MTN’s suit
“The parties herein are to be served with the processes in this matter,” Justice Mohammed Idris ruled.
He also ordered parties to maintain the status quo pending further hearing.
“An order is hereby made directing the parties cited herein to maintain the status quo ante bellum pending further hearing,” the judge said.
To maintain the status quo “is to keep the things the way they presently are”.
MTN asked the court to quash the sanction imposed on it by NCC in October for failing to disconnect unregistered subscribers.
The initial fine of $5.2 billion was reduced by 25 per cent to $3.9 billion in December.
But MTN sued NCC and the Attorney-General of the Federation Abubakar Malami (SAN), contending that NCC being a regulator ccould not assume functions of the state.
The Federal Government had, through a motion ex-parte, sought an order of mareva injunction restraining the 21 commercial banks from releasing any funds belonging to MTN.
It sought “an order of mareva injunction restraining the aforementioned banks from releasing, further releasing any funds, making sale, transfer or payment of monies or dealing in any manner whatsoever with any and monies maintained by the plaintiff/respondent (MTN) or its agents, privies, subsidiaries, sister companies or the like in the aforestated banks that will alter, decline or reduce the amount of the first defendant’s/applicant’s fine against the plaintiff/respondent in the N1,040,000,000,000 which has remained wholly unsatisfied, pending the determination of the motion on notice.”
The AGF, afraid that MTN could move its funds from the country, sought an order directing the banks to open a special interest-yielding account in the name of the chief registrar of the Federal High Court.
Malami prayed that the N1.04 trillion be kept with the chief registrar as trustee, and MTN should file an affidavit within seven days of being served with the processes.
AGF, in a supporting affidavit deposed to by Steve Nwabueze, argued that MTN regularly repatriate funds out of Nigeria.
According to him, between October 2007 and May 2009, MTN moved over $7.7 billion to a foreign account. Specifically, he said MTN, on February 8, 2008, transferred over $936 million to accounts in Mauritius, Cayman Island and British Virgin Island.
The deponent said MTN was obliged to pay the fine unless it was reviewed by the commission or nullified by the court.
“Unless this court entertains this application, the plaintiff/respondent would move its funds out of Nigeria, being the jurisdiction of this court, and thereby frustrate the enforcement of the fine in the likely event that this court sanctions the imposition of the fine,” the AGF said.
He said NCC earlier gave MTN a concession on the fine and reduced it to N780 billion, yet MTN refused to pay on or before December 31.
Malami said instead of MTN to take advantage of the concession and settle the fine, it chose to sue in a bid to buy time and avoid the payment.
The AGF said the plaintiff’s aim was to move its funds out of Nigeria before the case would be decided. He justified the imposed fine, saying it was his duty, as the chief law officer, to ensure that laws made by the National Assembly were obeyed.
According to him, not granting the application would render the court’s judgment nugatory should it be in NCC’s favour.
However, Justice Idris said the AGF did not show enough evidence to prove that MTN was about to empty its bank accounts and move out its funds.
The judge said he would hear the suit and deliver judgment promptly.
Justice Idris adjourned till January 22 for hearing.
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