By Samuel Ogidan
House of Representatives yesterday resolved to probe the collapse of Etisalat (now 9mobile) and has invited seven former directors of the telecommunication company.
The resolution to probe the company, according to the lawmakers, is to look into the allegation bothering on gross mismanagement of defunct Etisalat company and also to protect the interests of Nigerian subscribers and other shareholders.
The Chairman, House Committee on Communication, Hon. Saheed Akinade-Fijabi, who explained the development, pointed out that the allegation made the House “to invite the former directors who resigned sometime in June last year.”
The seven board members, according to the CAC 7A document read during the investigative public hearing, are: Hakeem Bello-Osagie (chairman), Serkan Okandan,
Munir Barakat, Mohammed Suraj, Sinisa Papp, Muhannad Sudki Kamel Qudar and Haten Dowidai, who resigned on June 2017 while one resigned on 31st June, 2017 respectively.
Speaking on behalf of the 13 Syndicate Banks which gave over N500 billion to Etisalat, the Head, Corporate Affairs of Guaranty Trust Bank, Lara Ogunlaja explained that as at the time the Lending Banks offered to restructure the facility in 2015, which was turned down by Etisalat management, the company’s entire capital had been completely eroded by its consistent losses over the years of mismanagement.
She further explained that the January, 16th 2018 date was the referenced date for all the bidders for 9mobile to submit their binding bids, not the deadline for the conclusion of the sale process.
Ogunlaja said: “Due to gross mismanagement, the company began to experience serious financial difficulties from 2015, exacerbated by the downturn in the Nigerian economy as well as the devaluation of the naira.
“These developments eventually rendered the company unable to meet its debt obligations to the lenders. The lenders were willing to restructure the debt in a manner that would ensure the sustainability of the company.
“However, the company willfully elected not to take advantage of the restructuring opportunity provided by the Lenders, thereby further worsening the company’s financial situation. It should be emphasized that, by that time, the company’s entire capital had been completely eroded by its consistent losses over the years of mismanagement.”
The Executive Vice Chairman of Nigerian Communication Commission, Umar Dambatta, who explained that the Court order which nullifies the interim Board of 9mobile has not been vacated, added that the intervention of Central Bank of Nigeria was to salvage the monumental collapse of the Nigerian economy as well as protect the interests of 4,000 Nigerian workers and about 18 million subscribers.
Representing the legal department of NCC,
Yetunde Akinloye explained that the sale of Etisalat (now 9mobile) was not handled by NCC, but the financial adviser, Barclays Africa.
The revelation made a member of the House Committee, Hon. Ossai Nicholas Ossai, to point out that section 26 of the NCC Act, Subsidiary legislation empowers the commission to be involved in the merger, acquisition and take-over process of any telecom companies in Nigeria.
He also frowned at the likely delay that may truncate the sale process of 9mobile if the Commission eventually observed inconsistencies in the process of selecting the highest bidder.
The Chairman of the Committee, Hon. Akinade-Fijabi, while ruling on the hearing mandated the interim management of 9mobile to give the Committee, all the contact addresses and phone numbers of all management staff of the defunct Etisalat.
House to probe collapse of Etisalat, invites 7 ex-directors
