NCC: MTN Faces Sanction over Recharge Cards Scarcity
From Kola Ologbondiyan in Abuja
The Nigerian Communi-cations Commission (NCC), yesterday, revealed that its officials are on the field conducting investigations into the circumstances surrounding the scarcity of recharge cards of the MTN Nigeria Commu-nications Limited and submitted that if the service provider is found culpable, the NCC would not hesitate to sanction it.
The NCC's Executive Vice Chairman, Engr. Ernest Ndukwe, who disclosed this at a stakeholders summit held by the Senator Ibikunle Amosun (PDP, Ogun State) Committee on Commerce to unravel the sudden increase in the premium of MTN recharge cards, said "we will impose some sanctions on MTN when we finish our investigations. There are three million cards waiting clearance at the port. There is no doubt that MTN is culpable on this issue (scarcity of recharge cards). But as a quick solution, release the cards, but I'm not saying that they should not pay what they owe."
Ndukwe, who addressed the gathering which included the representatives of the Comptroller General of Customs and the Consumers Protection Council while MTN failed to turn up, said "Nigerians cannot afford to buy more than the face value of the recharge cards. There is a problem at MTN. It's not as if the dealers are the cause (of scarcity of recharge cards) because we went round and confirmed that they were being under supplied.
"Initially, they (MTN) had deposited a bond with Customs and Excise which enhanced quick clearance. But the new Comptroller General of Customs is demanding that they have to pay cash before clearance. I've two teams in Lagos, a team in Port Harcourt to really check and know where the problems are," Ndukwe added.
According to him, "it is not in MTN interest that cards are scarce because the more cards they sell the more money they make. Statistical information showed that the warehouse is almost empty. If Customs had given them notice of deadline and not abrupt termination of clearing concessions, it would have been easy for MTN to adjust.
"In order to solve this problem and give Nigerians some respite, it would be necessary for the Customs to give them the last concession."
But the representative of the Comptroller General of Customs, Comptroller Julius Nwagwu, explained that, "importations are guided by rules. MTN particularly requested from Customs that it be granted concessions for pre-release whereby you are allowed to take consignments as they come in but the law requires that you must tidy your papers also as they come.
"We witnessed a lot of revenue leakages because they were not playing to the rules of tidying up their documents. The present management of the Customs and Excise decided to cancel pre-release to items that are not perishable and the concession was cancelled to all persons who hitherto enjoyed this.
"The problem is not with the Customs but that the concession was abused because they (MTN) used to enjoy this pre-release concession, which is a privilege and it goes with perfecting their documents within two weeks but they were defaulting even uptill one month. What they are asking is to take goods on pre-release concession without making payments, " Nwagwu said.
Amosun said, "MTN has enjoyed pre-release status for too long. Customs has given the concessions they are not even giving to Nigerians. We will sit again to enable MTN, Customs and NCC to decide on this. Nigerians are not finding the price increase funny at all and we have resolved that in the interest of Nigerians, we would meet again with all the stakeholders and we implore Customs to take a second look at the issue."
When the meeting resumed at 4 pm, all the stakeholders were present again except MTN. The group waited for about 45 minutes for the arrival of the MTN representatives but they were later told "that MTN representatives who are coming from Lagos are airborne."
However, Amosun explained that the stakeholders have "met the Comptroller General of Customs who after a long discussion agreed that if MTN is ready to do payment of what they have in shed, he would fast-track the release.
"MTN is not in outstanding anymore but the one left in the shed they must pay for in order to fast-track the release inspite of documentation. Unfortunately, the MTN is not here. We have cleared the procedural hurdles for them but again they are not here. We can't wait till eternity. They don't deserve what we are doing but we are doing it in the interest of Nigerians."
MTN had in its response to Amosun's invitation, dated July 13, 2004, but delivered yesterday, stated that, "MTN is doing all that is necessary to guarantee increased availability of recharge cards in the market for the benefit of our valued subscribers. MTN has been regularly updating the NCC and the Senate Committee on Communications on its efforts towards redressing this issue.
"MTN has provided all the relevant information on this issue to the Senate Committee on Communications and would hereby request that any concerns or issues on this subject may be directed to this Committee for its kind attention."
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