Court dismisses suit challenging 9mobile’s sale | Nairalaw

The Federal High Court in Lagos Wednesday dismissed a suit by
Spectrum Wireless Communications Limited against Emerging Markets
Telecommunications Services (EMTS), owners of 9mobile.

The plaintiff challenged the sale of Etisalat (which was renamed
9mobile).

Justice Chukwujekwu Aneke, in a ruling on EMTS’ preliminary
objection, held that the plaintiff lacked the locus standi to file
the suit numbered FHC/L/CS/153/2018.

He held that there was no direct shareholding relationship
between Spectrum Wireless and EMTS to vest on Spectrum the right to
sue EMTS to protect its alleged shareholding.

The court also upheld the defendant’s position that Spectrum is
not a shareholder in EMTS and cannot be directly affected by the
actions of its shareholders – Mubadala Holdings Cyprus Ltd,
Myacynth Coperative UA and Etisalat International Nigeria Ltd.

The court further upheld the defendant’s argument that if at all
Spectrum has a right of action, it should be against Premium
Telecommunications Holdings NV (PTHNV), the company it originally
invested in, and not EMTS.

Justice Aneke, therefore, upheld the submission of counsel to
EMTS that not being a shareholder of EMTS, Spectrum lacked the
locus standi (legal right) to bring the suit against EMTS on the
basis of any decision taken by EMTS’ shareholders.

The judge added that the concept of “indirect
shareholding/economic interest” claimed by Spectrum is unknown to
Nigerian law, which only recognises members of a company as those
named in its Register of Members.

Justice Aneke also held that Spectrum is not a party to the
credit facilities which it claimed was unlawfully obtained; adding
that it is elementary law that only parties to a contract can make
judicial claims in respect thereof.

The court, therefore, dismissed the suit in its entirety.

Spectrum Wireless Communications had sued EMTS and 16 others,
including United Capital Trustees Limited (the lenders), the
Central Bank of Nigeria (CBN) and the Nigerian Communications
Commission (NCC) over the sale of 9mobile.

The company had claimed that it acquired indirect holding of 30
per cent of EMTS’ shares after a private placement and was allotted
4,041,096 Class A shares of PTHNV, which owns 99 per cent of the
shares in MyaCynth.

The plaintiff also claimed that MyaCynth holds 30 per cent of
EMTS BV’s shares; that EMTS BV holds 99.9 per cent of EMTS’ shares,
and that EMTS’ syndicated loan from the second to fourth defendants
was granted without the requisite statutory approval of CBN.

Spectrum Wireless Communications also claimed that its
investments in EMTS would be lost if the 15th to 17th defendants
were allowed to effect EMTS’ sale.

However, Justice Aneke dismissed the claims and upheld EMTS’
preliminary objection.

AGF Revives Treasury Journal

The Accountant-General of the Federation, Mr. Ahmed Idris has
called on the members of the Treasury Journal Finance Committee to
work assiduously to bring innovative ways that will ensure that
funds are available for the production and publication of the 5th
Edition of the Treasury Journal.

Mr. Idris made this call recently in Abuja, while inaugurating a
13-member committee put together by the Accountant-General of the
Federation to secure the sustenance of the publication of the
Treasury Journal.

According to the AGF, “the Treasury Journal is a source of pride
to the Office of the Accountant-General of the Federation, and
represents our determination at showcasing the role of the OAGF in
Government programmes and activities”.

However, he regretted that its funding has not been as expected
as it has largely been through advertisements and other supports
from MDAs which usually affects the production of the Journal as at
when due.

The AGF also charged the Editorial Board of the Journal to
ensure highest standards and quality of inputs and publication of
Treasury Journal.
He therefore expressed his confidence on the committee to deliver
on the task assigned to them by assisting the Editorial Board to
achieve its mandate.

Responding, the Chairman of the Committee, Alhaji Ibrahim
Tumsah, thanked the Accountant –General for the confidence reposed
on them and assured that they will work hard to ensure that
adequate funds are raised to ensure timely realization of the
production of the 5th Edition of the Treasury Journal.

Mr. Henshaw Ogubike
Deputy Director/Head of Press and Public relations (OAGF)