MTN Cameroon, which operates under the umbrella of the MTN Group based in South Africa, has made a commitment to maintain its business activities in Cameroon despite facing a legal predicament that has resulted in the freezing of its bank accounts by court order. Since September 2022, the company’s accounts have been inaccessible, with more than 14 billion CFA francs, equivalent to around $23.72 million, being held up due to a contentious legal confrontation involving South Africa’s First National Bank (FNB) and a prominent Cameroonian tycoon, Ahmadou Baba Danpullo.
The root of the conflict lies in FNB’s decision to liquidate properties in South Africa belonging to Danpullo after he failed to meet the repayment terms of a real estate loan. In a bid to recoup his financial losses, Danpullo has taken legal action against other South African enterprises operating in Cameroon, notably MTN and Chococam, which is part of the Tiger Brands group.
Danpullo bases his legal strategy on the assertion that the Public Investment Corporation (PIC) of South Africa, a shareholder in FNB, also has substantial investments in both MTN Cameroon and Chococam. This connection is what Danpullo is leveraging to justify his claims against these companies.
Nevertheless, MTN Cameroon has categorically rejected any involvement in this legal dispute. The company has clarified that the PIC is not among its shareholders and insists that the details of its shareholders are transparent and can be verified through public records in the Cameroonian legal system.
MTN Cameroon’s CEO, Mitwa Ng’ambi, has expressed bewilderment over the company’s entanglement in this legal tussle, stating, “We do not understand how we have been brought into this matter that we are not even remotely involved in.” The CEO’s statement underscores the company’s stance of being an unrelated party to the dispute and its determination to continue its operations in Cameroon notwithstanding the current challenges.
Mitwa Ng’ambi further elaborated on the profound negative impact that the ongoing legal dispute and the subsequent freezing of the company’s bank accounts have had on its operations. The situation has significantly diverted attention and resources from MTN’s primary objective of delivering digital solutions to the Cameroonian market.
Ng’ambi expressed her concerns by stating, “This case poses a serious distraction from our business purpose.” She highlighted that MTN has been compelled to undertake a series of legal battles to challenge the court’s decision that has led to the freezing of its funds. These funds are crucial for the smooth functioning of the company, including the timely payment of salaries to its workforce of over 800 employees and maintaining its commitments to around 200,000 distribution agents who are integral to MTN’s operations.
The ongoing legal issues have not only immobilized MTN’s financial assets but have also cast a shadow over the operations of other South African businesses in Cameroon, potentially subjecting them to increased legal scrutiny and risks. This reflects the considerable influence that Ahmadou Baba Danpullo holds, as his legal maneuvers have managed to exert significant pressure on MTN’s financial stability.
As MTN persists in its legal fight to overturn the court order, the situation brings to light broader concerns regarding the investment climate in Cameroon and the potential hazards that foreign companies may face. Despite these challenges, MTN Cameroon remains resolute in seeking legal redress, with the hope of rectifying what it perceives as an “imminent miscarriage of justice.”
The company is determined to navigate through this legal quagmire and continue its mission of providing digital services in the region.
