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Mike Adenuga’s Globacom In N2Billion Debt Mess, Dares NCC

First Bank Nigeria

Globacom Nigeria is calling the bluff of the regulatory commission based on petitions sent to the commission by the Wireless Applications Services Providers Association of Nigeria (WASPAN).

The association sent the petition over debts owed by Globacom to its members totaling over N2billion.

In the petition; WASPAN alleged that Globacom refused to pay them their 20% portion of revenue made by Globacom from Value Added Services rendered to Globacom subscribers since 2013. They also complained that Globacom refused to give a detailed log of their services to show how much Globacom truly owes them. It is believed that the debt owed by Globacom, if fully investigated, is far in excess of the N2billion claimed as the total outstanding by Globacom.

glo logoIn its mediatory function as a regulators; NCC had mandated Globacom to produce within 30 days the detailed logs of the services rendered by the vendors and also make immediate payment to all Wireless Applications Service Providers that are being owed.

The 30 days ultimatum expired on October 15 without Globacom complying with any of the directives of the NCC.

In one of the attached internal memos made available to us, it was seen that Globacom was owing the vendors N805,022,709 as at December 2014 which till today remains unpaid. It was also noted that some vendors’ services have not been paid from February 2013, almost 3 years now. The memo is dated April 1, 2015.

An approval attached; via internal memo dated June 1, 2015 but was signed in August 2015 shows outstanding amount for January 2015 to be N208,974,917. And despite an instruction from Chairman of the telecom giant, Dr. Mike Adenuga to pay, the payment has not been done till today. We learnt Globacom management raised this memo after the ownership of company claimed that they can only pay a maximum of N200m to vendors at any time.

“Now into simple arithmetic, if the average invoice of the vendors is N200m per month and they have not been paid this year at all (10months as at October 2015), the outstanding amount due for this year alone is N2billion plus the previous amount of N805,022,709 that was outstanding as at December 2014 which makes a total of at least N2.8billion being owed to the vendors.

“Based on the contract signed with the vendors; Globacom earns 80% of the revenue on Value Added Services while the vendors earn 20%; this revenue share to the vendors is also the lowest in the industry. In essence, it means Globacom has already pocketed their share of the revenue being N11.2billion conservatively put.

“We believe Globacom is relying on its existence as a Nigerian company to influence the decision of the regulatory body as it has done in past dispensations. Even the second letter written to Globacom has not made Globacom to pay up because they wrote back to NCC saying that they are working on the payments. Globacom is just out to kill Nigerian companies.

“Globacom cannot claim to be verifying the authenticity of the figures because the internal memos attached by the marketing dept accountant (Ambrose), head of revenue assurance  dept (Sharma), head of internal audit (Awojulu), director of finance (Toluhi) and director of treasury (Disu)”, an insider in the industry explained to us.

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