IN an attempt to absolve themselves of criminal and civil liability for the non-payment of a $1.2 billion loan taken from 13 Nigerian banks, the directors of Etisalat Nigeria, save for its chairman, Hakeem Belo-Osagie, have resigned en masse from the seven-man board of the network operator.


According to sources close to Etisalat, the six Mubadala and Etisalat Group-appointed Non-executive Directors (NEDs), all nationals of the United Arab Emirates, resigned last week, following Emirates Telecoms Group Company’s (Etisalat Group) reporting disclosure on the Abu Dhabi Stock Exchange that it was transferring 45 per cent of its stake and 25 per cent of its preference shares in its Nigerian subsidiary to United Capital Trustees Limited, the legal representative of the lending banks.

Other shareholders of Etisalat Nigeria include Mubadala Development Company with a 40 per cent stake and Emerging Markets Telecommunications Services (EMTS), representing the Nigerian shareholders, with 15 per cent.

The consortium of banks had threatened to take over the operations of the telecoms company, unless it repaid the loan in full.

One source who was aware of the directors’ resignation informed THISDAY that they stepped down from the board intentionally in an attempt to exonerate themselves from the liability of the debt default that has enveloped Etisalat Nigeria, but said the banks will not allow them to go scot-free.

He explained that what the directors forgot is that they had used a Dutch-registered company, of which they are also the directors, to guaranty the loans from the banks, and as such cannot run away from their obligations to their Nigerian lenders.

“Yes, they resigned because they are trying to absolve themselves of the loans they have left behind.

“But they cannot run away because they had used a company registered in the Netherlands where they are directors to guaranty the loans, so they will still be held liable should Etisalat Nigeria fail to repay the loans to the banks,” he said.

He also disclosed that the only NED left on the board was the chairman, Belo-Osagie, clarifying that the Chief Executive Officer of Etisalat Nigeria, Mr. Matthew Wilshire, Chief Financial Officer, Chief Information Officer and Chief Commercial Officer are not directors of the company.

Right now, the noose is being tightened around Etislat’s neck to repay the loan, with shareholder groups in the capital market advising the firm to settle the debt, even as the banks are insisting on the prosecution of the foreign directors of the company and its principal, Mubadala.

The banks claim that the Mubadala-appointed CFO of Etisalat Nigeria diverted over $700,000 from the proceeds of the sale of its towers to IHS.

According to bank officials, they had financed the import and purchase of the towers through Huawei of China to help build the infrastructure backbone for Etisalat.

But when the telco earned foreign currencies from the sale, it failed to repay its USD loans as was done by other telcos like MTN and Airtel.

The shareholder groups are equally insisting that Etisalat must settle its indebtedness to the banks, so that the lenders in turn can pay dividends to their shareholders

Etisalat had in 2013 approached a consortium of 13 local banks for a loan of $1.2 billion for network upgrade and expansion. The money was sourced in dollar and naira components.

However, citing the economic downturn of 2015-2016 and naira devaluation, which negatively impacted on the dollar-denominated component of the loan, Etisalat wrote its creditors informing them of its intention to halt the installmental repayment of the loan, until such a time that it was able to raise more money.

Unsatisfied with the excuse from Etisalat, the banks threatened to take over the operations of the telecoms company should it fail to meet its payment obligations.

The situation forced Etisalat to enter into negotiations with the banks, seeking unreasonable write-offs, which the banks have so far rejected.

The impasse eventually led to Etisalat Group’s withdrawal from its Nigerian operations last week, leaving behind Mubadala and EMTS.

SOURCE: https://brandspurng.com/etisalat-directors-resign-to-escape-criminal-charges/

I would never employ this type of people, when trouble comes they disappear like cloud.

He is taken off finally from his responsibility.. he had gained enough, diverted enough to another business.. it is well with Etisalat and her staff.. No shaken

The story is incomplete. Why did the banks decide to call in the Telco's debt without exploring the option of a grace period ?

The 2015 - 2017 financial years were very tough andthe country experienced it's worst recession during that time.

I understand at one stage, the company also offered to pay back the loan in naira but the banks insisted on dollars.

Is taking over the company the best option? Is there a back story we don't know ?

God knows how much Bello-Osagie himself diverted. Irresponsible board!

Etisalat Trending on all sides....

But where is lalasticlala sef

Every business this man puts his hand DIES

Where is my cane, they should be arrested, flogged and jailed, nonsense

Hh

Cool for him

Banky W brought his curse to Etisalat.


No brand associated with Banky ever lasts.

It was even a terrible business idea to pay him that much for their theme song from their capital.

well this is naija
anything goes

NwaAmaikpe:

Banky W brought his curse to Etisalat.

let us patiently wait for the epistle
lol

All the good companies are going down! A monopolistic market is detrimental to public health! This can happen to anyone so GLO and MTN should not be happy by this news

...can they run from the long arm of the law??


when the chips are down, they will be forced to vomit the yam just as we'll do to our polithieftians once oil finish... .

please, I would want to know the date for Npower test?

I am still expecting one more resignation in Etisalat

Only in a country like Nigeria will you find reputable companies like Etisalat finding it difficult to service loans. I know and believe Etisalat will stand strong and continue delivering quality service, fast and reliable data speed and also low tariffs. Etisalat remains my number one brand. MTN, GLO, AIRTEL abeg make una park well...

Apart from Bat Man, Spider Man, Iron Man, Super Man, Which other man do you know?

ekensi01:
I would never employ this type of people, when trouble comes they disappear like cloud.

are u ready to stay with trouble?

If anything happen to Etisalat eh?

The most reliable network, oh my Etisalat. �

Where he dey run to??, mumu man, later or sonner you will hear he has been arrested and charged to court

July 1 for Npower tax volunteers, this is according to the info on their facebook page.

IamaNigerianGuy:
The story is incomplete. Why did the banks decide to call in the Telco's debt without exploring the option of a grace period ?

The 2015 - 2017 financial years were very tough andthe country experienced it's worst recession during that time.

I understand at one stage, the company also offered to pay back the loan in naira but the banks insisted on dollars.

Is taking over the company the best option? Is there a back story we don't know ?

There's no conspiracy to spin here.

The Telco defaulted on its loan, and that's it.

The issue of grace period does not arise given the banks are profit-oriented entities too with obligations to their shareholders.

No reasonable business will allow a defaulter to ask for massive writeoffs and leeway to pay as deemed fit.

obembet:
Apart from Bat Man, Spider Man, Iron Man, Super Man, Which other man do you know?

Ant MAN

Rip to the dead !

That doesn't make sense because Banky W has left Etisalat for more than 4 years now...

NwaAmaikpe:


Banky W brought his curse to Etisalat.


No brand associated with Banky ever lasts.

It was even a terrible business idea to pay him that much for their theme song from their capital.

Anyone who does business with Belo-Osagie will get what they deserve...

The business terrain in Nigeria is for the strongest.


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divineshare:
If anything happen to Etisalat eh?

The most reliable network, oh my Etisalat. �

Nothing is happening to Etisalat, just a systemic way of getting rid of liabilities to keep to company waxing stronger, the whole story will unfold soonest.