The raging disagreement between Nigerian owned telecoms giant, Globacom, and MTN, seems to have reached a denouement according to a statement from Wildflower, Globacom’s PR agency.
“According to impeccable industry sources, MTN had slammed a whopping sum of over N7.05 billion on Globacom, covering interconnect charges of N1.6 billion (which was already paid before the controversial publication), VAT of N1.7 billion allegedly paid on behalf of Globacom and a compounded interest of N3.6 billion”, which Globacom considered strange since it is the absolute prerogative of companies to pay its own interests and never through proxies.
Glo wondered why MTN paid VAT on its behalf when it was already an established fact that it met all its obligations to FIRS.
Continuing the statement noted that “to establish that Globacom was not short of funds but only fighting for its fundamental rights and integrity in the industry, the company posted a payment guarantee of N3,489,961,881.48 and also issued seven bank cheques each of N500m making a total of N3.5b. but MTN later opted for the bank guarantee. Globacom then requested for the commencement of a reconciliation exercise.”
The earlier threat to disconnect Glo was considered in bad faith and poor taste since Glo had even paid the N1.6 billion before the publication and was only seeking transparency with regard to the claims by MTN.
Concluding the statement noted that “after the parties sat down for due diligence with the regulators at NCC offices in Lagos, it was clearly established that contrary to the MTN insistence on claiming the earlier published sums, the interest element of the interconnect debt due from Globacom to MTN stands at N2,368,290,400.81. In view of this painstaking reconciliation, MTN can now go ahead to call up the FirstBank payment guarantee dated 17th January 2024. This shall represent the full and final payment.,”