Cameroon unfreezes MTN’s bank accounts with $23m, after 3 years

The Littoral Court of Appeal in Doula has ruled that the bank accounts of the African telecoms giant, MTN, be unfrozen.

According to a report by ITWeb, the account is worth over $23 million. MTN Cameroon, the country’s largest telecoms operator, revealed that the court unanimously decided that the Bestinver group of companies was not entitled to impose these garnishees, which it had done since September 2022.

The company also said it welcomes the decision “affirming the legitimacy of its defence and restoring its rights”. MTN has been denied access to its bank accounts for almost three years.

Recall that MTN and its banking partners in Cameroon were served with a garnishee order at the request of Ahmadou Baba Danpullo, a business tycoon with strong government connections. He also owns Bestinver companies.

The matter emanated from a case in the South African High Court involving Danpullo’s South African company, Bestinver Holdings, and First National Bank (FNB). FNB was owed R507 million by Danpullo’s companies. Consequently, the bank launched applications for the winding-up of the companies.

On 19 June 2020, the companies were placed in provisional business rescue and on 26 October 2020, the order was made final.

In response, Danpullo cried foul, alleging discrimination, as his real estate portfolio, reportedly valued at R4 billion, was liquidated for the sum owed to the bank. FNB denied the allegation, saying the move was strictly to recoup monies owed to the bank.

Subsequently, Danpullo approached the courts in his home country, Cameroon, for what many consider a reprisal. The court granted the garnishee orders on MTN Cameroon’s bank accounts, claiming it is a subsidiary of the Public Investment Corporation, a shareholder in FNB.

In response, MTN Cameroon told reporters that neither FNB nor the Public Investment Corporation are shareholders in the telecoms company.  “We see the seizure of MTN Cameroon’s accounts as abusive and nothing more than an attempt to access funds that legitimately belong to us,” CEO of MTN Cameroon, Mitwa Ng’ambi said.

Following the court order yesterday, Mitwa told journalists that the company is “grateful to our customers and partners for their trust during this process, assuring them our commitment to creating shareholder value.”

MTN makes Africa’s first satellite phone call

In related news, MTN South Africa has collaborated with American low-earth orbit (LEO) satellite provider Lynk Global to make Africa’s first phone call via satellite. Announced on Thursday, the duo said the milestone is a step towards providing coverage for underserved communities and rural areas.

LEO satellites provide high-speed internet even in areas where terrestrial telecommunications infrastructure, such as fibre and mobile broadband, is difficult and expensive to deploy.

Recall that in November 2024, Group CEO Ralph Mupita announced that its South African subsidiary was carrying out proof of concept with several LEO operators for possible partnerships..

The satellite call, which was made in Vryburg, the North West province of South Africa, was part of a technical trial that enabled MTN and Lynk Global to test its voice-call quality using a standard smartphone and SMS capabilities over a LEO satellite connection.

Reacting to the development, MTN South Africa Chief Executive Officer Charles Molapisi noted that the call showed MTN’s ability to complement its ground-based cell towers and other infrastructure with the LEO satellite.

“The technical trial was part of our work to find potential solutions to the challenges of providing coverage in underserved, rural and remote areas,” he added.

The companies received approval from the telecoms regulator ICASA to use radio frequencies on the MTN-licensed spectrum before their trial process. However, the companies did not provide details on their next steps.