Telecoms giant, MTN, has insisted that it followed proper corporate governance principles at its operations in Nigeria, hitting back against increasing criticism of the telecoms group after it was fined $5.2bn by the country’s regulators.

In its most detailed response to the controversy, the South Africa-based group also dismissed reports that it had reached a settlement with the Nigerian Communications Commission, saying that talks with authorities were continuing to resolve the matter.

“MTN has conducted its business in accordance with established principles related to sound corporate governance,” the group said.

The massive fine was imposed in relation to a dispute about the timing of the disconnection of 5.1 million unregistered SIM cards.

The fine has put the group’s management under intense pressure, with shareholders and investors complaining of a lack of transparency. Since MTN confirmed the fine on October 26, billions of Rand has been wiped off its market value.

Dan Matjila, chief executive of the Public Investment Corporation, South Africa’s state-owned pension fund manager and MTN’s largest shareholder, said that the company should have ‘handled it better right from the outset.’

“I would have thought they would have been told a long time ago that they need to comply. I don’t expect this to be a surprise,” he said. “I’m worried because there’s a lot at stake for shareholders to lose in terms of value.”

The powerful PIC has a stake of about 16.5 per cent in MTN, and Mr Matjila said that the group needed to check up on compliance “wherever they operate.”

Nigerian authorities have long highlighted the disconnection of unregistered SIM cards as a security-related matter as the country battles an insurgency by Boko Haram Islamists in the north and kidnappings for ransom in other parts of the country.

The $5.2bn fine was calculated on the basis of a 200,000 naira penalty for every unregistered sim card not disconnected by a deadline set by the regulators. This is in line with a government gazette published in 2011.

scannewsnigeria.com/news/mtn-fights-back-says-did-not-violate-any-rule-on-sim-card-in-nigeria/

Oya let all aggrieved persons waka sharpenly to the law court and prove their case. $5.2 billion nor be joke oooo. E fit spoil market for MTN in particular and the masses in general.

I'm tired of hearing this MTN brouhaha.

They can pay, if they don't want to......make dem clear road from naija and allow other telecoms investors to take over their assets and their license.

.........but I go miss their free browsing freebies.

I pray to NCC, if MTN does not pay this Fine or their contract not severed after its expiration then Nigeria shall be seen as a toothless bull dog to the whole world.

Pls NCC if it's true they intend to fight back, it would be appropriate the fine increased to $10 billion. It will go a long way to prove we re in control of Nigeria else one day Sao Tome will also put fingers into our eyes.