MTN to pay $1.7 bn Nigeria telecoms fine

Yahoo – AFP, Sibongile Khumalo, June 10, 2016

South Africa's MTN was hit with the huge fine amid fears that some of the
 5.1 million affected lines were being used by Boko Haram insurgents (AFP
Photo/Pius Utomi Ekpei)

Johannesburg (AFP) - South African telecoms giant MTN said Friday it would pay a $1.7 billion fine to the Nigerian government in a "full and final settlement" over its failure to disconnect unregistered mobile phone users.

The Johannesburg-based company said in a statement that "MTN Nigeria has agreed to pay a total cash amount of naira 330 billion over three years."

Africa's biggest mobile-phone operator was fined $3.9 billion last year and has since been in negotiations with the Nigerian government to reduce the size of the penalty.

The company was hit with the huge fine amid fears that some of the 5.1 million affected lines were being used by Boko Haram insurgents.

The logo of South Africa's MTN 

Group is seen on signage outside

the company's headquarters in 

Johannesburg, file. Reuters/

Mike Hutchings

Nigerian Communications Commission (NCC), the west African country's telecoms regulator, confirmed that following six months of talks, the MTN fine had been reduced.

It said in a statement that its decision to reduce the fine was based on "professionalism and global best interest."

"We were careful not to take decisions that were likely to cripple the business interest of the operators we regulate," said the commission's executive vice chairman Umar Danbatta.

"Besides, the downturn of the global economy is biting hard on everybody and every sector, so we must therefore be sensitive and flexible in our decisions," he said in the statement.

After MTN's announcement, its shares on the Johannesburg Stock Exchange rose as much as 21 percent, on track for the biggest gain since 2008, according to Bloomberg News.

The country's telecoms regulator had handed down the fine last year citing an inability to trace users in a country plagued by frequent kidnappings and Boko Haram militants.

The sum was originally set at $5.2 billion before being to lowered to $3.9 billion on appeal.

'Relief to investors'

"MTN is pleased to inform shareholders that the matter has been resolved with the Federal Government of Nigeria," the company statement said.

MTN executive chairman Phuthuma Nhleko "expresses his thanks and gratitude to (the Nigerian government) for the spirit in which the matter was resolved," it added.

MTN paid one instalment in February and has scheduled six other payments to cover the fine by May 2019.

"The news is a huge relief to investors, given the fact that Nigeria ended up not imposing the initial amount of the fine," Dobek Pater, telecoms specialist at the Africa Analysis consultancy, told AFP.

"MTN could not afford to lose a major market such as Nigeria and by paying the fine it shows that they still have faith in keeping their investment there."

As part of the deal has undertaken to "tender an apology" to the government and people of Nigeria over the matter, according to the NCC.

It also promised to "take immediate steps steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible," said the NCC.

The Boko Haram violence has left at least 17,000 dead and forced more than 2.6 million people from their homes since 2009.

The MTN fine dominated South Africa's President Jacob Zuma visit to Nigeria earlier this year.

Commenting on the MTN penalty, President Muhammadu Buhari had in March said his government was more concerned about national security than the fine.

"You know how the unregistered GSM (Global System for Mobile communication) are being used by terrorists.

"Unfortunately MTN was very slow and contributed to the casualties," said Buhari during Zuma's visit to Nigeria.

Relations between the continent's two economic powerhouses have been strained over recent years on issues including economic rivalry and political friction.

South Africa's growth has been undermined by the slowdown in China and falling commodity prices, while Nigeria, the continent's top oil producer, has suffered from low oil prices.

Singapore PM defends government Internet blockage

Yahoo – AFP, June 10, 2016

Singapore is one of the world's most Internet-savvy societies, offering
broadband speeds envied by many (AFP Photo/Roslan Rahman)

Singapore's prime Minister Lee Hsien Loong has defended the country's controversial decision to cut off civil servants' work computers from the Internet, calling the move "absolutely necessary" to keep information systems secure.

"Are we happy? I don't think so, because it will slow us down in terms of day-to-day productivity. In terms of security, safety of our systems, safety of our citizens and information concerning them, it's absolutely necessary," he told Singapore media during a visit to Myanmar.

Lee said that the defence and foreign affairs ministries already have separate computers for Internet access and for handling sensitive communications.

There was a huge backlash on Wednesday when The Straits Times newspaper reported that some 100,000 government computers would be affected by the Internet blockage, aimed at keeping data secure and preventing the spread of malware.

It quoted a cyber security official as saying that there were 16 attacks on government systems from unnamed sources in the last year, but the malware was detected and destroyed.

Singapore's prime Minister Lee Hsien Loong (L) has defended the country's 

controversial decision to cut off civil servants' work computers from the Internet, 

calling the move 'absolutely necessary' to keep information systems secure

(AFP Photo/Mohd Fyrol)

Malware is software specifically designed to disrupt or damage a computer system.

Civil servants would still be able to access the Internet on their personal devices such as tablets and mobile phones.

Public-school teachers and lecturers would not be affected by the move, officials said.

Singapore is one of the world's most Internet-savvy societies, offering broadband speeds envied by many.

A wide range of government services are available online, including registering for marriage, filing complaints to the police and video consultations with doctors.

Singapore announced in 2014 it was stepping up IT security measures following attacks on a section of the prime minister's website, as well the website of the presidential residence.

Surfing grannies: Almost 50% of the Dutch over-75s are now active online

DutchNews, June 3, 2016

Photo: Depositphotos.com 

Some 1.2 million people in the Netherlands, or 8% of the population, have never used the internet, the national statistics office CBS said on Friday. 

Most of them are elderly pensioners, but almost 50% of the over-75s are active online, the survey showed. Three years ago, just 35% of the over-75s surfed the internet. 

Of the people who don’t surf the web, 870,000 have no internet connection at home and the rest have internet but ignore it, the CBS said. 

Seven out of 10 of people who don’t have an internet connection at home say they are simply not interested in doing so. The second most commonly cited reason is a lack of skills. Just 14% cite privacy issues.

UK retailer BHS to shut with loss of up to 11,000 jobs

Yahoo – AFP, June 2, 2016

British department store owner BHS is to close administrators said after
failing to find a buyer (AFP Photo/Niklas Halle'N)

London (AFP) - British department store chain BHS is to close with the loss of up to 11,000 jobs, administrators said Thursday after failing to find a buyer.

BHS, which sells clothing, food and homeware, has failed to keep pace with traditional rivals such as Marks & Spencer and online giants like Amazon, resulting in a major loss of market share.

"Philip Duffy and Benjamin Wiles, managing directors of Duff & Phelps (the administrators) have today announced the orderly wind down of the BHS business," a statement said.

The 88-year-old company's 163 stores will enter "close-down sale mode" over the coming weeks following failed last-ditch rescue attempts by former Mothercare boss Greg Tufnell and Mike Ashley's Sports Direct.

BHS, which sells clothing, food and homeware,

 has failed to keep pace with traditional rivals such

 as Marks & Spencer and online giants like 

Amazon, resulting in a major loss of market 

share (AFP Photo/Niklas Halle'N)

A total of 11,000 jobs are in peril, comprising 8,000 BHS employees who are "likely to go", with another 3,000 non-BHS staff also at risk.

"Despite the considerable efforts of the administrators and BHS senior management it has not been possible to agree a sale of the business," the statement added.

"Although multiple offers were received, none were able to complete a deal due the working capital required to secure the future of the company.

"Our thoughts today are with the employees. We thank them for their professionalism and hard work. We would also like to thank the great British public for helping us in our efforts to save BHS resulting in several weeks of significant sales."

BHS had called in outside help last month in order to help rescue the struggling firm from potential closure.

Pension fears

However, Duff & Phelps was unable to turn around the fortunes of the faltering retail giant.

"The British high street is changing and in these turbulent times for retailers, BHS has fallen as another victim of the seismic shifts we are seeing," said Philip Duffy, managing director of Duff & Phelps.

"The tireless work and goodwill of the existing management team and employees of BHS with the support of my team were not enough to change the fortunes of the company."

According to retail consultancy Conlumino, BHS attracted some 13.4 percent of all British clothing shoppers through its doors fifteen years ago, and had about 2.3-percent of the clothing market.

Last year however, BHS pulled in just 8.2 percent of clothing shoppers, handing it a 1.4-percent share of the sector.

BHS has debts totalling more than £1.3 billion ($1.9 billion, 1.7 billion euros), including a £571-million deficit to its pension fund, which looks after the nest eggs of over 20,000 savers.

The collapse has shone the spotlight on previous owner Philip Green, the Top Shop tycoon.

MPs are set to question him about a £400 million dividend paid to his family from the business, which he sold last year to Retail Acquisitions for a token £1.

He also faces questions about the pension scheme, which boasted a surplus when he took over 16 years ago.

Starting in 1928 with a chain in London, BHS has since grown to stand at 163 stores and 74 franchise operations across 18 countries.

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