HEDA asks SEC to sack Ndukwe, Omobola Johnson from MTN board – TheNigerialawyer

The Human and Environmental Development Agenda (HEDA) has given
the Securities and Exchange Commission (SEC) a 14-day ultimatum to
delist some members of the newly constituted board of MTN
Nigeria.

In a petition sent to Mary Uduk, the acting director-general of
SEC, HEDA said the new board members were “picked to offer the
South African communications concern undue advantage in Nigeria’s
political and economic environment”.

The listed board members are Ernest Ndukwe, former chairman of
the Nigerian Communications Commission (NCC) now MTN chairman;
Muhammad Ahmed, former chairman of the technical committee of the
Nigerian Code on Corporate Governance; Omobola Johnson, a former
minister for communication; and Ifueko Okauru, a former chairman of
the Federal Inland Revenue Service (FIRS).

HEDA said the appointments are an attempt to “insulate MTN from
adverse local political action given its recent history with the
regulatory agency, the Nigerian Communications Commission, NCC, and
the office of the Attorney General of the Federation, AGF”.

“It was reported that major mobile companies in Nigeria were
fined by the NCC for failure to adhere to the law and were given a
week to deactivate unregistered lines,” the petition signed by
Olanrewaju Suraju, HEDA chairman, read.

“It was reported that while other mobile firms complied, MTN
flouted the regulator’s instructions, leaving 5.2 million
unregistered users on its network and the fine was due on November
17, 2015, but MTN managed to secure a cover-up and delayed fines
until a new management and government came into office.

“It is a complete show of irony that Mr Ernest Ndukwe who was
the Vice Chairman of Nigerian Communications Commission during the
MTN infractions, the regulatory body solely responsible for the
business activities of telecommunications and Mrs Mobolaji Johnson
as the Communication Minister at the time of this infractions will
be selected as the designate chairman and Board Member respectively
by the telecommunication company.

“Mrs Okauru was chairman of FIRS when the allegations of MTN
Nigeria’s tax evasion of over $2 billion relating to import duties,
VAT, withholding tax on foreign import/payments were revealed and
despite this it was reported that tranches of transfers were
discovered to have been made to companies in Dubai and Mauritius as
reported by Satellite Times on the 8th October, 2018 and these
allegations under the nose of the former chairman was consequent
upon the failure of the FIRS to undertake diligent and effective
supervision and no record of investigations to confirm the
authenticity or otherwise while in office.

“It is our firm belief that these persons who were once public
office holders who ought to have acted against some activities and
alleged infractions of this company but failed in their
responsibilities and capacities are now being compensated with
appointments into the board.”

Quoting rule 601 (5), HEDA said SEC is empowered by the
Securities and Exchange Commission rules and regulations of 2013 to
impose sanctions on registered companies and listed removal of
executive officers as one of the sanctions that can be imposed.

The non-governmental organisation threatened that it would
demand performance of its request in a court of law if no action is
taken within 14 days of its petition.

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