Customs seizes N20b MTN recharge cards
By Sonny Aragba-Akpore, Asst. Communications Editor
RECHARGE cards worth N20 billion and belonging to MTN Nigeria Communications Limited in containers have been impounded by men of the Nigerian Customs Service (NCS).
The Global System of Mobile Communication (GSM) operator is allegedly owing N2 billion Customs duties and hence the seizure.
But MTN Chief Corporate Affairs Officer, Joke Giwa, has denied that the firm was owing the NCS N2 billion as duties on the recharge cards.
The cards are said to be in the denominations of N750, N1,500, N3,000 and N6,000.
The seizure may not be unconnected with the current acute scarcity of the cards nationwide.
When MTN launched its Virtual Top UP (VTU) electronic system last week, it was silent on reasons for the scarcity. It, however, said that its electronic recharge system would go side by side with the recharge cards.
The firm was also silent on when the products would be available.
Sources disclosed that the poor handling of the Customs duties and other sundry matters which made MTN's monthly fortunes to dip, accounted for some of the reasons why its Chief Executive Officer (CEO), Mr. Adrian Wood, was replaced two days ago by a South African, Sifiso Dabengwa.
A statement on Monday, which announced Wood's redeployment to MTN Group headquarters in Johannesburg, South Africa and his replacement by Dabengwa, said it was "to position the company for greater growth and profitability."
Although Wood whose tenure expires on October 30 was said to have proceeded to Johannesburg to complete his three-year tenure beginning from August 1, MTN Group Executive Officer (Corporate Affairs), Yvonne Mathieu, said Wood's redeployment was routine.
The Guardian learnt from MTN officials in South Africa that Wood did not conform to the corporate policy of the group. This includes the need to be frugal in spending and be less flamboyant.
The sources also said that MTN Nigeria did not meet the projected revenue as a result of several leakages in the nation's operations.
Giwa denied that there was any undercurrent in Wood's redeployment.
Giwa said although she did not have the figures of MTN's monthly payments, "I can assure you that we are not owing. The information is absolutely inaccurate."
She said MTN imports a large amount of goods including switching equipment "but at no time was I aware of any indebtedness to the Customs."
The image-maker said all sorts of allegations were being levelled against MTN but "all these are false."
However, sources at the Customs confirmed the debt, which led to the seizure of the cards.
"MTN does not participate in unethical matters as a good corporate citizen."
According to the official, the relationship between MTN and some Customs top brass had been strained as a result of the non-payment of the duties, despite the two-week grace period allowed the firm to do so.
Giwa said it was not true that MTN had a sour relationship with the Customs. "Our relationship is cordial since we live up to our corporate responsibility."
At the launch of VTU last week, the company's chief marketing and strategy officer, Mr. Afam Edozie, said MTN has since commenced a massive recruitment of distribution partners and vendors across the country. We are also fine-tuning the logistics and security arrangements for the full-scale commercial deployment of the innovative recharge method."
Sources said that the Customs had stopped granting concessions to MTN after its recent failure to meet the deadline of two weeks while asking for another concession on the seized consignment.
Subscribers on MTN had been experiencing scarcity in the supply of recharge cards nationwide with the N750 card selling for between N800 and N900 while the N1,500 cards now go for N1,600 and N1,700.`
