By Modupe Gbadeyanka
The Nigerian Senate has voted to launch an investigation into the loan default by Etisalat Nigeria, which now trades as 9mobile.
The upper parliament said it was probing the matter so as to “protect jobs, corporate governance, and investment climate in the country.”
At the plenary on Tuesday, the Senate President, Mr Bukola Saraki, urged the Senate Committee on Banking and National Security to thoroughly look into the matter and present its findings on the floor of the Senate.
The lawmakers said they find it curious that the core investors in Etisalat Nigeria to obtain a loan of such magnitude, decide to default before pulling out of the business.
Few months ago, the core investors of Etisalat Nigeria left the company.
The telecommunication firm had obtained a $1.2 billion loan from 13 Nigerian banks but failed to make repayments earlier this year.
“The Senate is aware of allegations that the loans had been diverted to other uses not related to the business, as there was no evidence of what the company did with the loans,” the Senate said today.
“The decision of the core investors to pull out of Nigeria raises issues of suspicion, on the intent of a company in obtaining a loan facility, defaulting and then pulling out of the country, hoping that their shares would be used to write off the debts,” it added.
The upper chamber of the National Assembly, if required, will pass its findings on to regulators including the financial crimes agency.
Last week, a report by Reuters said Barclays has been charged to get a new investor for the company.
Before it pulled out, Etisalat Nigeria had repaid about 42 percent of the loan, remaining an outstanding debt of $696 million representing 58 percent of its capital, which Etisalat has failed to serve since 2016.
Adedapo Adesanya