Johannesburg - MTN, SA’s largest cellphone operator by subscribers, says allegations it illegally repatriated $13.92 billion out Nigeria are “unfounded”.
In a statement issued on Wednesday morning, it says its attention has been drawn to various media reports containing allegations that it improperly repatriated money out of Nigeria.
The reports refer to allegations made on the floor of the Senate that MTN had illegally repatriated $13.92 billion (R187bn) out of Nigeria over a period of 10 years in collusion with a number of commercial banks.
MTN Nigeria CEO Ferdi Moolman says the allegations made against MTN are completely unfounded and without any merit”.
The company did not comment any further. However, Bloomberg reports its stock slumped the most in almost two months.
Read also: MTN faces new allegations in Nigeria
Nigeria is MTN’s largest market and this scandal comes after the group, which recently settled a record fine in the country, was accused of paying a bribe to reduce its fine, reports it has denied..
BLoomberg reports that Nigeria’s Senate will thoroughly investigate the claim.
The four banks involved in the alleged illegal transfers are Citigroup, Standard Chartered, and Nigerian lenders Stanbic IBTC Holdings and Diamond Bank.
The accusation comes a little over three months after MTN agreed to pay a $1 billion fine in cash in several tranches to the Nigerian government and list its local unit on the country’s stock exchange after about eight months of negotiations.
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