Another exec quits MTN

·8 Oct 2013

MTN has confirmed that its head of procurement, Edwin Mashilo, has tendered his resignation, and will leave the mobile operator at the end of the month.

Business Day reported that Mashilo was accused of failing to report procurement irregularities involving another executive, Eleanor Potter, who also left MTN in September, citing insiders at the company.

The paper said that Mashilo was accused of failing to report procurement irregularities involving another executive, Eleanor Potter, who left in September.

The business daily put Mashilo’s golden handshake at close to R6 million, citing souces who said that the payment included four months salary, leave pay, pension and half of his MTN shares.

MTN has a seen a number of executives leave the group under a cloud of controversy, sparked off in July when chief financial officer and executive financial director, Nazir Patel resigned amid an internal investigation.

In August, MTN also waved goodbye to Eleanor Potter, GM for branded retail channel — responsible for the MTN retail outlets – also amid an investigation.

According to BusinessDay, the investigation was over a R120 million tender irregularity, while Potter also stood accused of putting data modems that were “against network capabilities” and “had failed laboratory tests”, to market.

MTN also suspended its chief corporate services officer in South Africa, Robert Madzonga, for allegedly authorizing R12.3 million in questionable payments to a legal friend.

Business Day also noted that head of mergers and acquisitions and international business development Khumo Shuenyane, and group executive for business risk management and member of the tender committee, Ignatius Sehoole, had left MTN in recent months.

Shares in MTN declined R3.36 or 1.74% to R189.64 in afternoon trade on the JSE, having dropped several percentage points on Monday after regulator, Icasa, announced plans to cut mobile termination costs dramatically.