Legal View

MTN faces $213m probe in Benin

MTN seeks to find amicable solution for its Benin woes.
MTN seeks to find amicable solution for its Benin woes.

Benin's telecoms regulator ARCEP has initiated a process to review the reasons why MTN has not paid outstanding invoices on frequency fees for 2016 and 2017 in that country.

On 30 March, the government of Benin issued MTN Benin frequency fees invoices for an amount equivalent to approximately $213 million (R3 billion) for the period March 2016 to December 2017, MTN explained in a SENS statement.

"Whilst the license agreement prescribes the calculation methodology for frequency fees it also provides that fees should take into account regional benchmarks, international practices and the local economy.

"MTN Benin has contested this amount on the basis that, inter alia, the amount is excessive which has been confirmed by an independent benchmark report commissioned in terms of MTN Benin's license.

"We will continue to engage with the regulatory authorities in Benin to find an amicable solution to this matter," says MTN.

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