The Sunday Times reported on 18 August 2013 that MTN has suspended its chief corporate services officer in South Africa, Robert Madzonga, because he authorised R12.3 million in questionable payments to a legal friend.
MTN would not comment on the specifics of Madzonga’s suspension. However, Madzonga told the newspaper that his suspensions was based on payments he authorized.
Some of the payments, according to the report, were based on invoices for 40 hour days and hourly rates of up to R168,358.
A report by PwC further found that there was no evidence that the lawyer receiving these payments, Nozuko Nxusani, did any work for MTN.
The suspension comes less than a month after MTN announced that group chief financial officer and executive financial director, Nazir Patel had resigned amid controversy which includes an internal investigation.
“Patel explained to the company that he does not wish his continued employment with the company to prejudice the company in respect of certain allegations made against him, which are subject to an ongoing investigation which had been commissioned by the company,” MTN said in a statement.