Littoral Court of Appeal Unfreezes MTN Cameroon’s $23 Million Bank Accounts

The Littoral Court of Appeal in Douala has ordered the unfreezing of bank accounts belonging to MTN Cameroon, the country’s leading telecom operator, valued at over $23 million, according to ITWeb. The court’s unanimous ruling declared that the Bestinver group of companies, linked to business tycoon Ahmadou Baba Danpullo, had no legal basis to impose garnishee orders on these accounts since September 2022.

MTN Cameroon hailed the decision as a victory, stating it “affirms the legitimacy of its defence and restores its rights” after nearly three years of restricted access to its funds. The telecom giant had been locked out of its accounts following a legal battle initiated by Danpullo, who secured the garnishee orders in Cameroon.

Origins of the Dispute

The conflict traces back to a case in the South African High Court involving Danpullo’s South African entity, Bestinver Holdings, and First National Bank (FNB). FNB, owed R507 million by Danpullo’s companies, pursued legal action to recover the debt. On June 19, 2020, the companies were placed under provisional business rescue, with the order finalized on October 26, 2020. This led to the liquidation of Danpullo’s real estate portfolio, reportedly worth R4 billion, to settle the debt.

Danpullo decried the move as discriminatory, but FNB maintained it was a lawful effort to reclaim owed funds. In what many view as retaliation, Danpullo turned to the courts in Cameroon, securing garnishee orders on MTN Cameroon’s accounts. He argued that MTN Cameroon, as a supposed subsidiary of the Public Investment Corporation (PIC)—a shareholder in FNB—was liable.

MTN’s Defence

MTN Cameroon refuted these claims, asserting that neither FNB nor the PIC holds any shares in the company. CEO Mitwa Ng’ambi called the account seizures “abusive” and an unjust attempt to access MTN’s legitimate funds. Following the recent court ruling, Ng’ambi expressed gratitude to customers and partners for their support, reaffirming the company’s dedication to delivering shareholder value.

Outcome

The Littoral Court of Appeal’s decision marks the end of a nearly three-year ordeal for MTN Cameroon, restoring its financial operations and reinforcing its stance against what it described as baseless legal actions.