News  

African telecoms firm MTN chief quits over huge Nigerian fine

By AFP   |   09 November 2015   |   7:28 am  

mtnThe chief executive of South Africa-based mobile phone operator MTN has resigned over a $5.2 billion fine imposed on the company in Nigeria, the telecoms giant said in a statement Monday.

“Due to the most unfortunate prevailing circumstances occurring at MTN Nigeria, I, in the interest of the company and its shareholders, have tendered my resignation with immediate effect,” CEO Sifiso Dabengwa said.

MTN has appointed non-executive chairman Phuthuma Nhleko as executive chairman for a maximum of six months while the company identifies a successor for Dabengwa, the statement said.

The Nigerian Communications Commission (NCC) fined Africa’s largest telecoms firm for missing a deadline to deactivate 5.1 million unregistered SIM cards.

The Johannesburg Stock Exchange (JSE) has launched an investigation into MTN for “possible insider trading” before the company announced it had been hit by the fine.

Its share price fell from 190.84 rand ($13.4), shortly before the fine was revealed, to close at 157.45 rand on Friday — a fall of 17.5 percent in two weeks.

Shares were steady at 157.45 rand on Monday morning, the lowest price since April 2013.

The probe by the JSE could result in South Africa’s bourse operator slapping MTN with another hefty fine or result in criminal charges.

Nigeria, Africa’s most populous country, is MTN group’s largest market where it had over 62.8 million subscribers by the second quarter of this year.

Nhleko said he would “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”.

“Together with the MTN Board, my second priority will be to find an appropriate Chief Executive Officer to take MTN forward. I will then revert to my non-executive Chairman role,” Nhleko said.



  • Yemi Amodu

    Sterling Homes ltd selling Plots and Acres of Land//

    Hebron garden estate is owned by Sterling homes Ltd and it’s
    completely free from “omo-onile” and government acquisition. Land
    mass: more than 10acres. Land type: dry, sandy and leveled. Location: Lekki,
    about 6minutes drive to Eleko beach and 15minutes drive to Lekki free trade
    zone. There are several notable Landmarks before the estate. These include, The
    Lagos Business School, Crown Estate, Farapark, Sapphire Garden, Green Springs
    School and Shares immediate environment with Mayfair Gardens and Beechwood
    Estate & lots more. PAYMENT PLAN FOR A PLOT: *Smart plan: Outright payment
    #2.8m. *Easy Plan: ‎#3m. Spread #210,000 for 10months after the initial deposit
    of #900,000. Contact Yemi Amodu @ Sterling Homes LTD for site inspections and
    more information: Plot 2, River Valley Estate, Ojodu Berger. Mobile 08136119495

    Havilah park and garden is an estate located about 6mins
    drive off the Lagos-Ibadan expressway. It’s about 25mins drive to Berger
    bus-stop. The estate is fenced with a gate house, and our ultra- modern
    borehole is already in place. The price of a plot is #630,000 outright, and we
    still have other installment plan also. For more information and site
    inspection call Yemi Amodu @ Sterling Homes LTD: Plot 2, River Valley Estate,
    Ojodu Berger, Lagos. Mobile: 07084546154, 08136119495

    Moriah park is situated at Agbowa, Ikorodu. The estate is
    facing the Lagos state housing scheme popularly called Fashola estate. It’s
    fenced round with a gate house and an industrial borehole has been constructed
    at the site as well. It’s selling for a promotional offer of #750,000 outright,
    though we still have other installment payment option. For more information and
    site inspection, call Yemi @ Sterling Homes LTD: Plot 2, River Valley Estate,
    Ojodu Berger, Lagos. Mobile: 07084546154, 08136119495

  • Mukhtari

    1 year ago, South Africa seizes $9million from Nigeria underground arms deal. months later, Nigerians are killed in SA xenophobia. Two weeks ago in India, Nigeria declared. we are broke’. shortly after MTN based out of SA is fined $5billion.Straight to the single treasury account! Hurray. salaries will be paid till january. instead of borrowing from IMF. smart. potential investors beware.

    • AA

      hahaha!

You may also like