MTN In More Mess, As Report Indicts NCAA, MTN Over N1bn Fine

Source: thewillnigeria.com

SAN FRANCISCO, November 25, (THEWILL) – An audit report has indicted the Nigerian Civil Aviation Authority (NCAA) over the payment of a N699 million fine by MTN Nigeria, instead of N1 billion.

Known as “Aviation height clearance and charges,” the report queried the unclear role of MTN Nigeria in arriving at the final sum paid as it represents a fraction of what the audit called 'revenue leakages.'

It also recalled instances in the past where there had been air crashes caused by masts and the non-utilisation of some airports presently due to the existence of masts close to them.

Specifically, the technical report of the MTN height clearance from the Directorate of Airspace and Aerodrome Services (DAAS) said the payments were neither with invoices nor with any documented legal agreements.

Both the legal adviser office and the company secretary of the NCAA are divided on how MTN arrived at the sum of N699 million in transactions that the audit report said was not documented.

Meanwhile, aviation unions are set for a showdown as they take their protest to the National Assembly to cause an inquiry into what an executive called a “willful short-changing of the authority without any action taken.”

The DAAS, legal sources in NCAA said was making MTN pay the “meagre sum of N699 million that NCAA does not have agreement for and worse off without any invoice.”

For now, both DAAS and a faction of the legal department believe that MTN's payment is in the neighbourhood of N1 billion, but curiously paid N699 million into NCAA's coffers.

Sources in DAAS believe that there appears a deliberate ploy to deny the authority close to N300 million as receivable revenue.

“We believe that DAAS is in the dark on how MTN arrived at what it paid without known parameter, calculation. The technical department suspects collusion within the NCAA and MTN because from our own parameters, we expected MTN to have paid N1 billion and not N699 million,” according to the DAAS sources.

The legal officers also agree that the amount payable to the NCAA should be in the neighbourhood of N1 billion.

With no known settlement agreements, the audit query wants further information on the location of the masts, number of masts paid for, how the masts were calculated, the technical details of the agreements, periods the payment covered, if the payment is one off or final.

As of October 2015, technical department of the Authority said they were “still in the dark on the sum to be paid.”

The NCAA had been embroiled with telecoms firms over the erection of masts along flight paths. It is not the best of times for the Nigerian telecoms operators.

THEWILL recalls that few years ago the Authority said it was going to pull down all telecoms masts erected along specific routes it designated as airline routes. It gave owners of such masts certain time to remove them otherwise they would wake up to find the rubbles one morning.

There are laws in Nigeria that empower both the Ministry of Aviation and the NCAA to control the construction/erection of high-rise structures in the country.

These include the Civil Aviation Act (1964 No 30) Section 8, states the minister of aviation can determine building or structure in the vicinity of an airport that may constitute danger to aircraft flying in the darkness or conditions of poor visibility.

Also, paragraph 2 of the same section made provision for notice of 14 days to be given while paragraph 3(b) states: “any expense reasonably incurred in connection with the lawful removal of any such structure installed in pursuance of such an order and so much of an expense incurred in connection with the repair, alternation, demolition or removal of any building, structure or erection to which such an order relates and is attributable to the operation of the order, shall be deemed to be loss or damage suffered in consequence of the order.”