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No nonsense Rwanda slaps sh30 billion fine on MTN for breach of contract

Mike Ssegawa by Mike Ssegawa
8 years ago
in Business, News, Technology
2 0

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By Namugerwa Martha

The Rwanda utility regulatory authority (RURA) has imposed a fine of Sh30.8 billion (7.3 billion Rwanda francs) to MTN Rwanda limited due to non compliance with its license obligations.

RURA spokesperson Anthony Kulamba, said that MTN Rwanda implemented information technology (IT) managed services under an MTN regional hub outside the country which contradicted the regulatory directive which was issued by RURA.

“MTN Rwanda Ltd proceeded with the implementation despite having discussed the matter with the regular and being warned that such action would constitute a serious breach of license obligations and appropriate measures would be taken,” Kulamba said.

He added that by doing that the MTN Rwanda had breached its license obligation which required it to comply with all applicable laws, regulations and any other regulatory instruments issued by the competent authority.

However, on 4th May 2017 the regulatory board of RURA conducted  a hearing session in which MTN Rwanda Ltd was informed on the breach of its license obligations and given the opportunity to be heard, whereby it admitted the breach.

Therefore , in accordance with the applicable laws, the Regulatory Board of RURA  decided to impose MTN Rwanda an administrative fine of seven billion thirty million Rwanda Francs (7,030,000,000).

MTN fine in Rwanda comes after MTN Nigeria faced a nearly $4 billion fine for ironically safeguarding the anonymity of its users by not requiring the registration of identification for SIM cards.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
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