Firm Threatens to Destroy MTN Facilities over Debts

MTN Nigeria is facing the threat of demolition of its installations in the Niger Delta region because of alleged debt to one of its major contractors, Procomtel.

The threat comes from Gbaruka Resources, a service provider based in Bayelsa State, which is a sub-contractor to Procomtel.

In official correspondence to the MTN Nigeria MD, Gbaruka Resources claimed that having made fruitless efforts to get paid for its labour by Procomtel, allegedly because MTN refuse to pay for the work, it was left with no choice than to return to the trenches.

The Gbaruka Resources group said that failure by MTN Nigeria to settle with Procomtel on or before  February 15 will see it commence the demolition of all MTN installations in Rivers State by third week in February, those in Bayelsa and Delta states by the end of fourth week of February, and the demolition exercise in other states of the Niger Delta region in the month of March.

MTN Nigeria is no stranger to debt controversies as in 2010, Alan Dick and Company (West Africa) Limited, a telecommunications engineering company, dragged it to court over N1 billion debt allegedly owed the engineering firm.

Alan Dick asked  the court to enter judgment against MTN in the sum of N1.1 billion being the amount admitted by MTN to be due to the plaintiff (Alan Dick) arising from telecommunications engineering and construction services rendered by the plaintiff to the defendant (MTN Communications) prior to the plaintiff's liquidation.

Messrs. Kunawing Nigeria Ltd. a contracting firm also alleged in 2011 that MTN Nigeria owed it N26.76 million through Messrs. IHS Africa Plc. a major contractor to MTNN.