Business

9mobile sale: Teleology considering legal action over disruption of process

Published

8 years ago

April 16, 2018

Preferred bidder of 9mobile, Teleology Holdings Limited may be considering legal option on the latest twist in their ownership of the troubled fourth largest telecommunications company, National Daily has gathered.

Recall that last week, following a petition from of the losers in the bid process, the House of Representatives Committee on Telecommunications had directed the Nigerian Communications Commission (NCC), to suspend all transactions towards the sale of 9Mobile over allegations of fraud in the bidding process.

The Committee also summoned the Governor of Central Bank of Nigeria (CBN), and the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Danbatta over the alleged discrepancies.

In his ruling, Chairman of the Committee, Mr. Saheed Akinade-Fijabi, during last week’s investigative hearing on the sale of 9mobile, argued that the CBN and NCC could not claim inadequate knowledge of the transaction.

However, during the hearing last week, NCC’s Director of Public Affairs, Mr. Tony Ojobo expressly explained all the lawmakers need to know on the sale of 9mobile, but still, the Committee demanded that the duo of Emefiele and Danbatta should appear in person before the Committee in the next hearing date.

It would be recalled that such intimidating invitations were among the ground upon which the umbrella body of licenced telecoms, ALTON is considering approaching a court of competent jurisdiction for interpretation of oversight functions of lawmakers on private businesses, especially telecoms.

The House Committee is also demanding a comprehensive list of directors at Teleology Holdings as well a representative of the company to appear before the committee.

While placing a suspension order, Chairman of the Committee noted that if his committee is able to establish irregularities in the process which led to choice of the preferred bidder, it will consider cancelation of the entire deal.

Teleology who had paid the $50m initial payment and given 90 days to pay the balance of $450 million or cede 9mobile to the reserved bidder, Smile Communications, National Daily gathered may approach the court for interpretation of certain clauses as contained in the agreement.