Telecommunications giant MTN has been accused of not saying the truth about Osun State government by making false claims about its dealings with Oodua Infraco, a company it alleged was a shareholder of the state government.
According to reports, MTN claimed that Oodua Infraco instructed it to suspend Right of Way (RoW) payments, but Oodua Infraco has denied making such a request.
In a statement issued and made available to Journalists in Osogbo, by the consultant to the Osun State Government on telecommunications infrastructure who is also the Chairman of Global Transactions Limited Mr Rotimi George Taylor noted that MTN was not saying truth about her dealing.
According to Taylor “The situation with MTN is shameful as the organization has chosen to be economical with the truth. One of the first lies that was published by MTN in the Nigerian Communication Weekly publication of 16 August 2024 was that Osun State was a shareholder of Oodua Infraco and that Oodua Infraco is a part of the O’odua Investment Group. This shows how poor the due diligence process in MTN really is.
He said “They don’t even know the company they are dealing with. Oodua Infraco has CAC documents that are public and the company has only private individuals as shareholders. The company is not and has never been a part of the O’odua Investment Group.
“Oodua Infraco, the company MTN claimed instructed it to suspend RoW payments, has categorically stated that it made no such request.
“This directly contradicts MTN’s justification for withholding payments. In fact, by letter dated 4 March 2024 Oodua Infraco made it clear that they have never asked MTN not to fulfil its statutory tax obligations.
Oodua Infraco also clarified that it did not have any prior agreement with the Osun State government at the time MTN signed its deal with Oodua.
“This undermines MTN’s assertion that it had a valid, binding contract for RoW fees. There are serious allegations that MTN failed to conduct proper due diligence, leading it to now seek to abandon a reported ₦12 billion infrastructure project in Osun State – a decision that could have severe consequences for the people of the state and the South West.
“Concerning claims have been made that MTN deliberately sought from the Osun State government by claiming to pay ₦650 for RoW fees, when the actual cost is over ₦1,000. If true, this would amount to a clear attempt at fraud. The question is who within MTN benefited from this transaction and why are they trying so hard to cover it up. MTN is called upon to present to the public the payment they allegedly made for right of way to Oodua Infraco.
“The anger that Osun State has appointed a Consultant is by an embittered company who has failed to be clever by half and ended up being penny wise and pound foolish. MTN is seeking to make Osun State pay for its own mistake. MTN does not have any document that shows that Oodua Infraco is authorized to collect right of way payments on behalf of Osun State. If they do, they should present it.
“Furthermore, MTN Indefensible to Right of Use (IRU) signed between them and Oodua Infraco should be subject to criminal investigation. The agreement does not provide anywhere that Right of Way fees would not be paid to Osun State Government and tactfully, MTN did not make Osun State a party to that agreement.
“The request for MTN to provide proof of its RoW payments to Osun State is a reasonable one, as the state government maintains that it has not received any such payments.
“MTN’s reported statement that it is “bigger than a state government” and does not need to follow state laws is unacceptable and undermines the rule of law.
“Given the gravity of these allegations, we call on MTN to immediately provide full transparency regarding its RoW agreements, payments, and interactions with both Oodua Infraco and the Osun State government. Furthermore, we support the state government’s request for a thorough investigation into potential fraud and mismanagement by MTN.
“The reason why MTN is declaring losses at this time is no fault of the Federal Government or the NCC but because of its own internal operational organizational failures as displayed in this transaction.
“The attempts to settle this matter by MTN were full of failed promises. The representatives sent to Osun State have lied and at first refused to provide the information on the amount of cables laid within the State.
“MTN should stop playing games and should pay its taxes. A company that has failed internally to carry out due diligence should not ask the State of Osun to pay for its mistakes.” Its added.