Home » Headline » Etisalat: Banks want EFCC to probe Keem Belo-Osagie, Partners over $1.72billion loan
Etisalat: Banks want EFCC to probe Keem Belo-Osagie, Partners over $1.72billion loan
Hakeem Belo-Osagie

Etisalat: Banks want EFCC to probe Keem Belo-Osagie, Partners over $1.72billion loan

The Consortium of 13 banks, involved in Etisalat Nigeria’s $1.2 billion loan is seeking the federal government’s intervention to investigate the recently eased out Management especially the activities of Emerging Markets Telecommunications Services, EMTS,,promoted by-one time Chairman, United Bank for Africa, UBA, Hakeem Bello-Osagie, who acted as Etisalat Chairman from inception.

A management source close to the banks in Lagos said that the banks want the government, through the Economic and Financial Crimes Commission (EFCC), to wade into the matter, by investigating what the company did with the loan.

The source alleged that the loans were siphoned and needed to be investigated by the EFCC, noting, there was no proof of what the company did with the loan.He said that the affected banks had rolled out a lot of viable options to Etisalat for the loan to be restructured, but was rejected by the company.

EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.

Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover on Tuesday in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

The source said that the banks were not into telecommunications and had no intention of running Etisalat.

“All we want is to recover the loans; we cannot write off the loans as being demanded by Etisalat, because the company is viable,” the source stated.

The source said that telecom company wanted the banks to write off the loan as non-performing, which was rejected because the company was doing well.

According to the source, the company wants injection of new capital, and this has been suggested to the majority shareholder. The source said the government should investigate the matter with all seriousness, to dig out the truth.

Etisalat on June 20 said that it had been instructed to transfer its 45 per cent stake in Etisalat Nigeria to a loan trustee. Etisalat said it had been notified to transfer its stake by June 23. It said the stake had a carrying value of zero on its books.

It would be recalled that in the last three months, Etisalat Nigeria had been in talks with the consortium of banks, to restructure a 1.2 billion-dollar loan, after missing repayments.

The loan is a seven-year facility, agreed with 13 banks in 2013, to refinance a 650 million dollar-loan, and fund expansion of the telecommunications network.

Although the Nigerian Communications Commission (NCC), and the Central Bank of Nigeria (CBN), stepped into the fray to prevent a takeover by the banks, those discussions failed to produce an agreement on restructuring the debt.

Source:Nigeria Communications Week

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