Telecom giant, other company fined over $160 million for tax evasion

folarin okunola

January 21, 2016 8:40 AM

This will be another blow for South Africa-based MTN Group whose Nigerian unit is currently contesting a $3.9 billion fine for failing to disconnect unregistered SIMs.

Bystanders walk past an outlet of South Africa's MTN Group in downtown Cape Town, November 10, 2015. REUTERS/Mike Hutchings

MTN Group can’t seem to shake the endless “L’s” constantly coming its way. According to various media reports, the local units of MTN and Orange in Cameroon have been fined over $160 million for failure to pay taxes on games and gambling services.

According to the Central African nation’s corruption board, a wide reaching probe into the sector led to fines totaling $283 million. Other companies such as Camtel and Viettel, were also found to have violated regulations.

Nigeria CommunicationsWeek reports that the amount paid by each company was not clear and that the companies were not immediately available for comment.

READ: Telecom giant reportedly vows to not pay NCC fine, could leave Nigerian market

According to a Reuters report, the Cameroonian anti-corruption agency, known as CONAC, in its report, also accused telecom giants, MTN and Orange, of evading tax payments on their mobile money transfer system.

This will be another blow for South Africa-based MTN Group whose Nigerian unit is currently contesting a $3.9 billion fine for failing to disconnect unregistered SIMs.

MTN Nigeria had successfully lobbied to get the fine reduced from the initial $5.2 billion imposed on it by the Nigerian Communications Commission (NCC).

folarin okunola