South Africa: MTN CEO quits in wake of 5.2 billion fine
Date
11/9/2015 8:38:45 AM
(MENAFN- The Journal Of Turkish Weekly) MTN group CEO Sifiso Dabengwa has resigned from the mobile giant following a recent $5.2 billion fine slapped on the operator by Nigeria’s Communications Commission (NCC) on Oct. 26.
In a statement on Monday Dabengwa attributed his resignation to "the interests of shareholders."
Last month Nigeria’s Communications Commission (NCC) fined MTN Nigeria with $5.2 billion for failing to meet a deadline to deactivate 5.1 million unregistered subscribers on its network.
MTN said Dabengwa will be temporarily replaced by Phuthuma Nhleko the company’s current non-executive chairman as it looks for a new CEO.
"I will proactively deal with the Nigerian regulator and will continue to work with them in addressing the issues around unregistered subscribers as a matter of urgency” Nhleko said in a statement on Monday.
The NCC says MTN has until November 16 to pay the fine.
The commission said in a statement that unregistered SIM card use was linked to terrorism and kidnappings.
MTN'S share price has been under pressure since the Nigerian regulators issued the fine. As of Nov. 6 its shares had lost 8 percent on the Johannesburg stock exchange after media reported that the company would pay the fine which is equivalent to about 20 percent of its earnings.
South Africa’s MTN which began operations in 1994 now has networks in 22 African countries as well as in Asia and the Middle East.
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