MTN and Orange in Cameroon fined US$160m for evading taxes

MTN and Orange in Cameroon have been fined US$160 million as both companies had allegedly failed to pay tax on games and gambling services.

The report by the the anti-corruption commission, known as CONAC said a total of US$283 million had been unpaid by both mobile operators. Other companies Camtel and Viettel were also discovered to have violated regulations.

The report by CONAC also says MTN and Orange have not been paying taxes on their money transfer systems.

MTN Cameroon has since released a statement denying any tax evasion:

‘MTN Cameroon wishes to reassure its stakeholders that MTN Cameroon IS NOT AND HAS NEVER BEEN implicated in corruption-related actions, in the exercise of its activities.

MTN Cameroon therefore affirms that its interactions with the Government of Cameroon and its representatives have always been transparent, and in conformity with the Laws of the Republic of Cameroon.

MTN Cameroon is a responsible investor and is up to date with regard to its fiscal obligations to the relevant authorities in Cameroon, in accordance with all applicable rules and regulations. Our company is one of the two biggest contributors to the State in terms of taxes and customs duties. Our corporate citizenship and responsible attitude have, on several occasions, earned public recognition, notably from the General Directorate of Customs.

MTN is proud of, and celebrates, its contribution to the development of Cameroon since February 2000, as well as its continuous support of communities through the work of the MTN Foundation.

Consequently, MTN Cameroon is committed to provide world-class services to the people of Cameroon, and avails itself to the Government to clarify, if need be, any points highlighted in the CONAC report.’

Just recently MTN faced a fine of US $5.2 billion in Nigeria by the Nigerian Communications Commission for failing to disconnect unregistered SIM cards which could possibly be used for criminal activity. It was later slashed to US$3. billion. 

Ferdi Moolman, Chief Executive of MTN Nigeria has been quoted in the media saying “operating in the telecoms world has become challenging.” 

Here’s to hoping our own MTN Zambia has their stuff together.