tripleY:
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/

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

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

sophoccles:


Keem has been a corpporate cannibal right from his days of infamy at UBA. The depredation he visited on that bank's books allowed Tony Elumelu to gobble up the entire bank without breaking a sweat.

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

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

tiwiex:
I don't feel sorry for d bank one bit. They got greedy. This is y many Nigerians say our banks don't do real banking. Our big man have access to 80% of our wealth.

Finally, I thought a company with majority foreign investors would bring in FDI. So na our money dem dey spend since. Weh don. All these big men committing pen robbery.

TijaniAbu:


Fake news concocter sotay depreciation is now depradation ko?

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 ?

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

Jabioro:
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

softwerk:
Every business this man puts his hand DIES

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.

989900:
1. They spent money indiscretionally.

2. Part of the funds were diverted.

3. The crash of the Naira (major).

4. VOIP calls evolution.

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

cbngov01:


What's dis one saying? Depositors fund?Ok so if u go to d bank and u can't withdraw ur fund and d bank tels u it's cos of ETISALATs loan u will smile and go home?....Oga apply brain

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

IamaNigerianGuy:


Typical Nigerian. Must your response be prefaced with insults ?

You are very quick to claim depositors funds.
1. Nigerian Bank directors don't care a about depositors as much as they care about their pockets. They perpetuate fraud everyday aimed at those same 'depositors funds'

2. Running a Telco is a very different business from banking. Etisalat is the third largest in Nigeria with a large loyal subscriber base. It has assets, income and prospects for growth. Taking the company over, they run the chance of running is reputation. How then do they recover their money? How many foreign technical partners will want to work with a Telco in receivership ? How many top staff will be willing to stay ? How many vendors will agree to pride goods and services on credit ?

3. Instead of taking over the company, why not insist on board seats and more voting rights ? The bad eggs could be eased out as well if identified.

4. How many companies taken over by banks, AMCON or any other interest have survived in Nigeria ? Look at Oceanic, Intercontinental, PHB various shipping and Oil companies. Do you see a pattern here ? Don't you think we should learn from history ?

Bankers are part of the problem in Nigeria. I am suspicious of a takeover through the backdoor like happened with V mobile and subsequently destroyed it. Time will tell

Wize1:


God bless you man! Majority of folks here are ignorant. This is clear power play. Aig Imokhuede and his guys want to have a piece of the pie. This is what they've done over and or again, bully seemingly politically weak folks outta there businesses and taking over using instruments of govt .Aig was the highest single debtor to Intercontinental bank, and yet the bank was forcefully taken off the owner's and sold to him. He is currently the chairman of the stock exchange I think, watching and protecting his interests. He tried so hard for the CBN position but his fellow bankers rejecyrd him knowing how dangerous he can be.There's no set of humans more corrupt in this country than these bank board room folks. They empower thieves to fleece the nation dry. Etisalat defaulted, yes and thats after paying up 500M of the 1.2B with all the economic downturn and u begin to wonder what all the gra gra is for when there are businesses who owe more, Dangote and Co. Why not come to a consensus for the loan repayment? Why all the ploy and propaganda to forcefully take the company over. We'll see as things unfold.

Tenim47:
are u ready to stay with trouble?