Fraud uncovered at NITEL

19 May 2008

A fraud running into billions of naira has been uncovered at beleagured incumbent telco Nigerian Telecoms (NITEL) by accountants working at Transcorp, which owns 51% of the operator, reports local daily This Day. The bean-counters are said to have stumbled across loopholes through which billions of naira (NGN1 billion = USD8.68 million) have been siphoned out of NITEL, which has in recent times been embroiled in one controversy after another. The leaks involve several organisations and government agencies using NITEL services without paying, or paying a token to ‘faceless’ people instead of to the firm. An officer of Transcorp said that all disbursements to NITEL have been suspended until the issues are resolved, adding that the accountants had been given 30 days to come up with a plan to solve the problem.

Nigeria, ntel (formerly NITEL/M-Tel)