(Ecofin Agency) - MTN Cameroon's bank accounts were frozen by Cameroonian courts in September 2022. The telecom operator strongly contests this measure, which it considers abusive, fraudulent, and unacceptable.

MTN Cameroon, a subsidiary of the South African multinational MTN Group, believes that its activities are threatened by the seizure of its bank accounts, in the framework of the "Bestinver affair". In a press release issued on Wednesday, June 14, the operator complains that it is bearing the brunt of a dispute in which it plays no part. It considers the measure abusive, fraudulent, and unacceptable.

In September 2022, Cameroonian courts authorized the seizure of MTN Cameroon's bank accounts at the request of the lawyers of Cameroonian businessman Ahmadou Baba Danpullo. The move comes in response to the liquidation of the four South African subsidiaries of the businessman’s real estate investment company, Bestinver Holding, at the instigation of FirstRand Bank Limited (FRBL), the parent company of First National Bank (FNB), to which Mr. Danpullo's company owed ZAR507 million ($27.9 million).

Baba Danpullo disputed the seizure, describing the liquidation of his assets as spoliation and a racially-motivated crusade. He is therefore seeking to recover, from South African companies based in Cameroon, an amount of CFAF259 billion ($432 million) presented as the value of the real estate from which Bestinver was allegedly robbed. MTN Cameroon got caught in the dispute because Bestinver claims that it is a subsidiary of Public Investment Corporate (PIC), which is one of the shareholders of the FNB. 

The freezing of MTN Cameroon's bank accounts could affect the company's ability to invest adequately in its telecoms network, at a time when consumers are complaining about the poor quality of the services provided. The company was recently fined CFAF1.4 billion ($2.3 million) for recurrent breaches of its coverage and quality requirements. 

"MTN Cameroon is confident in the judicial system as an institution and believes it is entitled, like all litigants, to fair, equitable, and impartial justice. MTN Cameroon, therefore, hopes that the law will be established. We remain convinced that Cameroon is a state governed by the rule of law, which cannot accommodate such a rocky affair, which is seriously contributing to the deterioration of the business climate and undermining investor confidence,” the company stated.

Isaac K. Kassouwi