Cameroon watchdog fines MTN, Orange $166m, both unaware
The saying 'when it rains it pours' might be an appropriate one for MTN 'doing business in Africa'. I say Africa because following the lifting of sanctions in Iran, things might turn the other way for them over there. The company is currently embroiled in a $3.9 billion saga with the Nigerian government. And now apparently the Cameroonian corruption board is after them and France's Orange for around $166 million in taxes, a lot less than the Nigerian fine. Both companies say they're unaware of the actions. But the problem when your company keeps popping up in these types investigations is other countries may start to prod a little bit more. – Stuart Lowman
YAOUNDE, Jan 20 (Reuters) – The local units of Orange and MTN owe Cameroon nearly 100 billion CFA francs ($166 million) in taxes, including on games, the Central African nation's corruption board said on Wednesday.
An inquiry into the sector, carried out by the anti-corruption commission known as CONAC, found that taxes totaling 176 billion CFA francs had gone unpaid from various companies, including Camtel and Viettel.
However the majority was owed by the local units of France's Orange and South African mobile telecom firm MTN, it said.
"Orange has not received any formal notification of the conclusions of a report or a fine of any sort. We are not aware of this affair," an Orange spokesman said.
MTN also said it had not been informed of any fines against its Cameroon business, but said it was looking into the matter.
The other companies were not immediately available for comment.
According to CONAC, MTN owed nearly 52 billion CFA francs in taxes and royalties, while Orange should pay around 48 billion CFA francs.
It said both companies had also benefited from tax breaks – worth over 28 billion CFA francs for Orange and 24 billion CFA francs for MTN – that the corruption watchdog deemed to be illegal.
MTN is already contesting a $3.9 billion fine in Nigeria for failing to disconnect users with unregistered SIM cards, which can be used for criminal activity – a growing concern in Nigeria given the threat of militant Islamist group Boko Haram. MTN successfully lobbied to get that fine reduced from $5.2 billion in December.