EFCC investigation: We’ve not been accused of any crime, says MTN

MTN Nigeria Communications Plc on Saturday said that it was
being investigated by the Economic and Financial Crimes Commission
(EFCC) over listing of its shares on the Nigerian Stock Exchange
(NSE).

A statement posted on the exchange web site signed by MTN
Nigeria Communications, Company Secretary, Uto Ukpanah confirmed
the investigation.

The statement said that the company received a letter on May 23,
from EFCC requesting information and documentation related to the
listing of its shares on the NSE.

“MTN Nigeria has not been accused of any wrong doing by the
EFCC.

“We wish to reiterate that we received all regulatory approvals
required to list our shares on the NSE, as publicly confirmed by
NSE and the Securities and Exchange Commission (SEC).

“As a law abiding and responsible corporate citizen, we are
cooperating fully with the authorities.

” We are committed to good governance and to abiding by the
extant laws of the Federal Republic of Nigeria,” said the
statement.

The News Agency of Nigeria (NAN) reports that there have been
reports of scarcity of the shares since after its listing, which
resulted to alleged price manipulation.

Consequently, some minority shareholders had decried the
inability of retail investors to have access to the shares since
May 16 after the listing.

They accused capital market regulators of conniving with MTN
Nigeria Communications to allegedly manipulate the performance of
the share price at the exchange.

They said that the MTN Nigeria did not meet the free float of 20
per cent before listing.

Sunny Nwosu, Founder, Independent Shareholders Association of
Nigeria (ISAN), in an interview with NAN described the listing as
“a fraudulent game.”

“Our conclusion as shareholders is that they have come to play
us a game which is not far from fraudulent game, the nominal value
of MTN shares is not certain.

“These are areas I think SEC should ask NSE questions rather
than the issue of gifts sharing at AGMS and ban of pre-AGM.

“We are not certain of MTN, up till now no prospective
shareholder can tell you this is what MTN Nigeria stands for,”
Nwosu said.

He said that the exchange had set a bad precedent in the market
by allowing some companies to list without meeting the free float
requirement thereby cresting a bad image.

But the NSE recently said that the total number of MTN shares in
the hands of over 700 Nigerians, who are not promoters, controlling
interests, directors, that were unbundled upon listing was about
1.8 billion.

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