MTN to remain in Cameroon despite businessman’s targeting of South African companies and an ongoing court-ordered seizure of its bank accounts.
The accounts have been frozen since September 2022, holding over 14 billion CFA francs (approximately $23.72 million), as part of a legal battle between South Africa’s First National Bank (FNB) and Cameroonian business magnate Ahmadou Baba Danpullo.
The dispute originates from FNB’s liquidation of Danpullo’s South African properties following a real estate loan default.
In retaliation, Danpullo sought to recover his losses by targeting other South African companies operating in Cameroon, including MTN and Chococam, a subsidiary of Tiger Brands.
Danpullo’s argument hinges on the claim that South Africa’s Public Investment Corporation (PIC), which holds stakes in FNB, also has significant investments in MTN Cameroon and Chococam.
MTN Cameroon denies any connection to the dispute
However, MTN Cameroon has firmly denied any connection to the dispute, stating that PIC is not a shareholder in the company whose shareholders, it claimed, are a matter of public record in Cameroonian court.
Speaking about the unfortunate turn of events, MTN Cameroon CEO Mitwa Ng’ambi, said, “We do not understand how we have been brought into this matter that we are not even remotely involved in.”
She added that the situation has severely impacted the company’s operations, diverting resources away from the company’s core mission of providing digital solutions in Cameroon.
“This case poses a serious distraction from our business purpose,” Ng’ambi said, noting that MTN has been forced to engage in numerous legal actions to contest the court’s decision.
The frozen funds, essential for day-to-day operations, have forced MTN to sustain payments to over 800 employees and 200,000 distribution agents under increasingly difficult circumstances.
The case underscores the power Danpullo wields, with his actions not only freezing MTN’s financial resources but potentially increasing scrutiny and legal risks for other South African companies in Cameroon.
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As MTN continues to challenge the court order, the case raises broader questions about the business environment in Cameroon and the potential risks for foreign investors.
For now, MTN says it remains focused on legal recourse, hoping to resolve what it considers an “imminent miscarriage of justice.”
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