Court voids FG’s cancellation of 2.3 GHz license auction

[bayo4luv]

A Federal High Court sitting in Abuja has quashed the revocation by the Federal Government of the 2.3 GHz (gigahertz) spectrum licenses issued to three telecommunications firms in June last year by the Nigerian Communications Commission (NCC).   

The licences had been issued to Mobitel Limited, Spectranet Limited and Multilinks Telkom. The Federal Government had ordered the revocation following questions raised by the former minister of information and communications about the transparency of the bid process.   

One of the winners of the auction, Mobitel, challenged the revocation in court, listing as respondents, the minister of information and communications, the federal ministry of information and communications, the attorney-general of the federation and the Nigerian Communications Commission (NCC).   

Delivering judgement yesterday, Justice Umar Garba of the Federal High Court, Abuja said the minister of communications' purported cancellation of the auction was absolutely and totally arbitrary as it relates to section 123 of the Nigerian Communication Act 2003 which provides for the NCC to may make regulations in any matter under this chapter. The section also states that the regulation may include procedure for assignment of spectrum such as but not limited to auctions, tender and fixed price to be determined by the Commission. 

He added that the provisions of the Act gave the Commission the exclusive powers regarding the sale of frequency and makes absolutely no mention of the first respondent (minister of communications). Therefore, the action of the minister in cancelling the auction is a violation of due operation of the law, the judge ruled.   

Justice Garba added that the NCC "is hereby deemed by the Act to perform this function for and on behalf of the National Frequency Management Council. The Act does not contemplate otherwise to the extent that no authority will void an auction of frequency by the Commission.   

The presiding Judge averred that "the first respondent is the chairman of the National Frequency Management Council created by section 26 of the NCC Act 2003. No member is accorded with a prerogative to any unilateral action regarding the actions of the Commission as was exercised by the first and second respondent in the letter dated the 25th of May 2009.   

"The only remedy for the act of the first and second respondents which is not backed by law is to declare same ultra vires".    He added: "The courts being a creation of the law are saddled with the constitutional duty and responsibility to enforce and guard against the vice by ensuring adherence to the tenets of the law. The courts will therefore continue to function to constrain any government department through the instrument of prerogative writs where such department exceeds the limits of the powers conferred on them by the law.   

"Where the law provides for the ways and methods of doing an act, only that method will be allowed in doing such an act. Anything done otherwise is ultra vires".

Court voids FG's cancellation of 2.3 GHz license auction

latest news, breaking news, business, finance analysis, comments and views from Nigeria :: Businessday

[bayo4luv]