MTN Rwanda Agrees to Pay US $8.5 Million Administrative Fine

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MTN-Rwanda has agreed to pay a fine of US $$8.5 million to settle its dispute with the Rwandan government.

After ‘failed’ negotiations MTN Rwanda has said that it will pay an administrative fine to Rwanda Utility Regulatory Authority (RURA) and will pay the whole amount this July.

According to the MTN Rwanda CEO, Bart Hofker the fine will not affect customers and none has to pay MTN’s administrative errors, even when payment will affect the company’s cash flow.

“MTN Rwanda will be the one to pay the RURA fine not MTN Group.  The fine will affect cash flow not performance of company” said Hofker during a press briefing today.

On May 17, RURA imposed a massive fine worth $8.5 million (Rwf 7. 030,000,000) as a result of non-compliance with the directives issued by the regulator prohibiting the inclusion of MTN Rwanda in the MTN South and East Africa (SEA) IT hub based in Uganda.

After nearly two months of negotiation and re-negotiation over fine imposed on MTN Rwanda details of the discussions were never made public as the former insisted that the Mother company (MTN Group) in South Africa had taken charge of the situation.

In an earlier interview, Tony Kulamba, the RURA spokesman said the regulator was waiting for MTN to implement the fine within their own timeline.

“We are waiting for them to implement. The ball is in their hands and if they don’t comply we shall have to take other measures,” Kulamba said then.

MTN Rwanda CEO refuted media allegations that the company was ‘cheating’ its 3.5 million subscriber clients but counting on its market performance to clear the fine.

The company stated that it voice revenues went up by over 6% and mobile money services growth now accounting for over 67 % of total transactions value on market, pushing its revenue growth at 6.3 by June this year.

In the meantime, MTN is yet to appear before the Rwandan parliament after the Lower House of lawmaker summoned the company to explain why up to now it has not compensated Rwf3.5million to a man who dragged the telecom company to court over poisoning last year.

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