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How Holder, US Lawyer Helped Cut Billions off MTN Fine

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Telecoms firm MTN hired former U.S. Attorney General Eric Holder in January to help it reduce a $3.9 billion fine imposed in Nigeria over unregistered SIM cards. Five months later, it struck a deal to pay less than half of that.

The entrance of Holder, who stood down as attorney general last year after presiding over some of the largest corporate settlements in American history, marked a change of strategy for the South African company.

MTN dropped a three-month legal challenge against the fine and, according to government sources and letters seen by Reuters, asked Nigerian Attorney General Abubakar Malami to put forward a proposal for a reduced fine to the communications regulator, the official authority in the dispute.

The regulator, the Nigerian Communications Commission (NCC), rejected the proposal as unjustifiable, documents show, but three months later it accepted a broadly similar deal. Reuters was unable to determine the role, if any, that Holder played in the change of heart.

MTN, Holder, Malami and the NCC all declined to comment on the negotiation process.

There is no indication that any individuals acted improperly, and companies have often reached settlements with regulators in Nigeria.

Lawmakers have however criticised the opaque nature of the settlement process, saying it set a precedent for other firms dealing with Nigerian authorities.

The 780 billion naira fine – $3.9 billion at the exchange rate at the time – was set by the NCC in December over MTN’s failure to deactivate more than 5 million SIM cards not registered by customers. Nigeria has been trying to halt the use of unregistered cards over concerns they are being used for criminal activity, including by Islamist militant group Boko Haram.

MTN, Africa’s biggest telecoms company, initially launched a high court challenge against the fine, arguing the watchdog had no legal grounds to order it. The law states that the NCC does have the right to impose such a penalty.

In February, however, MTN withdrew the lawsuit and paid a “good faith” payment of 50 billion naira to the government which it said was part of efforts to reach an amicable settlement and would go towards the eventual fine agreed.

The NCC said at the time that it had not agreed to enter into any talks with MTN and that it stood by the 780 billion naira penalty.

Rather than dealing directly with the regulator, Holder approached Malami to help broker a settlement, according to the government sources and letters seen by Reuters.

LETTERS
In a letter dated the same day MTN announced it was dropping its court challenge – Feb. 24 – Holder wrote to Malami on behalf of the company offering to pay 300 billion naira and list MTN’s local unit on the Nigerian stock exchange to end the dispute.

Under the Nigerian constitution, the attorney general can mediate in a dispute involving a state body after the matter has been taken to court.

Malami asked NCC to review the MTN offer but the regulator was not impressed, according to another letter seen by Reuters.

“The proposal to pay the sum of 300 billion naira … is not supported by any verifiable justification,” NCC Chief Executive Umar Garba Danbatta said in a March 1 letter to Malami.

Nor was the NCC convinced by MTN’s sweetener of a local listing. “This is a business decision absolutely within MTN’s prerogative and primarily to its benefit. There is no justification for bringing this along in discussing the present issue,” Danbatta said.

But when MTN announced on June 10 that it reached a deal with the government to pay a fine of 330 billion naira – just 30 billion naira more – the NCC appeared to have altered its view, notifying parliament in a letter dated the same day of a “full and final” settlement.

“It was never about the money it was about making clear the rules are the rules,” NCC spokesman Tony Ojobo told Reuters on June 13. “The MTN listing is a big positive for Nigeria and will benefit the country.”

When asked about the March 1 letter and what had changed the NCC’s view, Ojobo said he would not discuss the negotiations.

A parliamentary committee on telecommunications is reviewing the deal and the negotiations that led to it. Such reviews by lawmakers are standard practice after big corporate settlements and are aimed at ensuring that there has been no wrongdoing by any party involved and that the public interest has been served.

“What concerns us most is what MTN proposes in February is so similar to what is agreed in June. It is clear MTN were dictating the pace,” committee chairman Saheed Akinade-Fijabi told Reuters.

“What does this say to other businesses? That to get the best deal you use unofficial back channels and keep the public in the dark?”
DIVISIONS

The deal has exposed divisions within the Nigerian government; officials within President Muhammadu Buhari’s team were also unhappy with Malami’s plans to strike a deal with MTN which they considered too generous, leading to heated discussions between the two camps, two government sources said.

There has been no official comment from Buhari on the settlement.

Holder was hired by MTN through his Washington-based law firm Covington and Burling which he joined last year after six years as U.S. attorney general.

Settlements he presided over in public office included the $13 billion JPMorgan Chase paid to settle charges of mis-selling mortgages in the run-up to the financial crisis and the BP Deepwater Horizon oil spill case, which has topped $20 billion.

It is unclear whether Holder has been based in Nigeria during his time working for MTN, which counts Nigeria as its biggest market. It also is unclear whether he still advises MTN. Covington and Burling declined to comment.

Following the settlement MTN’s share price, which had fallen around 30 percent between a fine being announced and Holder being hired, has risen by around 25 percent.


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New CAMON Device Set to Redefine Mobile Content Creation

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TECNO is gearing up to launch the next CAMON series device, which promises to be the next evolution in mobile photography.

TECNO

The CAMON lineup has always been known for its innovation in capturing and sharing cherished moments. Now, TECNO is taking it to the next level with a groundbreaking camera innovation that aims to redefine what’s possible.

For years, the CAMON series has been the driving force behind countless memorable shots, empowering users to unleash their creativity and capture the world in stunning detail. With the upcoming device, TECNO promises to exceed your expectations and deliver an unparalleled photography experience that’s second to none.

The new CAMON device will feature cutting-edge technology and unparalleled performance, setting a new standard for mobile photography and content creation. Imagine being ten steps ahead of the curve, armed with a device that empowers you to capture the perfect shot every time.

Stay updated on the latest news and announcements regarding the upcoming TECNO CAMON device by following TECNO on FacebookInstagram, and X(Twitter). Join TECNO on this exciting journey towards the future of mobile photography!


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Data Protection: NIMC’s Licensees to Face More Scrutiny

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Following the reported incident of unauthorized NIN verification by expressverify.com, investigation reveals that a third-party who, among others, was originally authorized to provide verification services to citizens and genuine businesses might have allowed expressverify.com to use its NIN verification credentials to conduct verification. The circumstances surrounding this permission is still under investigation.

 

To remedy this incident, National Identity Management Commission (NIMC), in line with established remediation protocols, barred all forms of access to its database.

Though necessary, barring all forms of access affected all genuine and crucial verification requests. After a painstaking review, limited access has been granted to few establishments that are providing pivotal public services such as education and security.

Ongoing investigation – by relevant agencies – seeks to establish the medium through which expressverify.com obtained the credentials of bona fide third parties and to determine the liability of persons involved in line with extant laws.

At the moment, data processing by licensees generally are to be scrutinized and only those that are cleared based on credible evidence of regulatory compliance will be permitted to carry out NIN verification going forward.

Furthermore, series of intensive trainings will be conducted in order to ensure that personnel and licensees are abreast of the duty of care and the standard of care mandated by the Nigeria Data Protection Act, NIMC’s Privacy Policy and other relevant regulatory protocols.

In the meantime, NDPC calls on members of the public to see NIN as an essential data for sustainable development. While existing technical and organizational measures are being strengthened to ensure the protection of this data, it is important for citizens to ensure that they are not left unidentified in various frameworks for development. It is equally important to be vigilant when sharing personal information on various online platforms.


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5 Common Backup Mistakes and How to Avoid Them

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Are you confident that your valuable data is protected from unexpected disasters or cyber threats? Consider this: 1 in 10 computers fall victim to viruses, and a staggering 113 phones are stolen every minute every day[1].

With data loss being a sudden and potentially irretrievable nightmare, ensuring reliable backups is non-negotiable. March 31st, celebrated as World Backup Day, is a poignant reminder of this essential task. Let’s delve into the common backup mistakes people make and how to steer clear of those.

1. Skipping regular backups:

The most common mistake is forgetting to back up data regularly. Whether personal files or crucial business documents, not establishing a consistent backup routine leaves you vulnerable to data loss.

Unexpected system crashes or malware attacks can happen anytime, making your precious data inaccessible or permanently lost. But you can help avoid such a situation by setting up automatic backups.

SSD Backup Mistakes to avoid
2. Putting all faith in a single backup device:

A device can get damaged or stolen, putting your backups at risk, so depending entirely on one storage medium is playing a dangerous game with your data’s safety.

 Instead, diversify your backup storage solutions with a combination of external HDDs, NAS, and cloud storage.

Portable HDDs like those from WD like Western Digital’s My Passport offer up to 5TB for simple, cost-effective backups. For smartphones, 2-in-1 flash drives such as SanDisk Ultra Dual Drive Go USB Type-C and SanDisk iXpand Flash Drive Luxe are convenient options.

These drives, compatible with USB Type-C devices, automatically back up photos, videos, and more. Just plug and play for seamless data transfer across devices.

If you need a device to store huge amounts of data, then the desktop drive called My Book  from WD is just the product for you, with up to 22TB of storage capacity.

SSD Backup Mistakes to avoid
storage device

3. Forgetting version control:

Overlooking version control during backups is another blunder. Not keeping multiple versions of files increases the chance of saving corrupted or wrong data over previous versions.

Without a proper versioning system, fixing mistakes or retrieving older versions can become a challenge. To prevent forgetting version control, establish a system that tracks changes to your files over time.

This ensures that you can always revert to earlier versions if needed, helping protect against accidental data loss or corruption.

Regularly maintaining this system will help you stay organized and prepared for any unforeseen issues.

Additionally, it’s crucial to verify the version you’re backing up to ensure it’s the correct one.

This simple step can help prevent accidental overwriting of important data with potentially corrupted or incorrect versions.

Double-checking ensures that you’re safeguarding the most up-to-date and accurate information, minimizing the risk of errors during backups.

SSD Backup Mistakes to avoid
4. Ignoring off-site backup solutions:

Many people overlook off-site backup solutions, assuming local backups are foolproof. However, relying solely on local backups makes you vulnerable to site-specific disasters like fires or theft.

Using off-site backups means keeping copies of your data in different places so that if something bad happens in one area, your data stays safe.

As an alternative, you could use cloud storage. Cloud backup devices are popular for remote data storage accessible via the internet. Various online cloud services offer features like file synchronization, sharing, and encryption for secure data storage.

5. Underestimating encryption:

Not prioritizing encryption in backups can be a costly mistake. Storing unencrypted backups makes your sensitive data vulnerable to unauthorized access or breaches.

Implementing strong encryption ensures even if your backups fall into the wrong hands, the data remains protected.

However, it is equally important to remember not to opt for out-of-the-box encryption solutions, as they might make it difficult for you to retrieve the backed-up information later.

My Passport HDD and My Book from WD come equipped with built-in 256-bit AES hardware encryption with password protection that helps keep content secure.

Additionally, maintaining proper key management practices is essential to ensure smooth decryption and access to your data when needed.

SSD Backup Mistakes to avoid
Monitor and storage device

This World Backup Day, Western Digital urges you to back up your data safely, and at the same time, prepare for the unexpected by having a contingency plan in place for device mishaps like crashes, theft, or damage.

Worrying about losing data isn’t something you have to lose sleep over if you have an active data backup strategy.

A common rule of thumb for keeping important data from disappearing forever is the 3-2-1 Rule. It dictates that you should:

3. Have THREE copies of your data. One is a primary backup and two are copies.

   2. Save copies of your backups on TWO different types of media or devices.

   1. ONE backup copy should be kept offsite in case of disaster.

Determine where and how you’ll store backup files and identify support contacts for swift assistance.

These proactive measures ensure quick data recovery and safeguard your cherished memories for the long haul.


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