MTN CEO cleared in investigation
Update: In a SENS accouncement on Friday, 6 September, MTN said its board held a special meeting on Wednesday, 4 September 2024, to deliberate on a report by an independent law firm, assisted by counsel, tasked to verify allegations contained in an anonymous complaint against executive members.
The report showed that attempts to engage with the complainant were unsuccessful and that there was no evidence of improper conduct by those cited in the complaint.
“In its deliberations, the board accepted the Report finding and is of the view that the matter has been
addressed and is now closed. The board further expressed its full support for the Group Chief
Executive Officer and the MTN strategy,” said MTN.
MTN Group Ltd., Africa’s biggest wireless service provider by subscribers, said it’s probing issues of alleged favoritism by Chief Executive Officer Ralph Mupita.
The Johannesburg-based Sunday Times newspaper reported on 1 September that an unspecified number of executives threatened to quit after complaining about Mupita allegedly giving preferential treatment to a female executive.
The newspaper cited people it didn’t identify.
MTN’s board is “engaged in a verification process in relation to the allegations raised, and once this process has been completed,” the company said in response to Bloomberg’s questions. It will deliberate and communicate as appropriate with stakeholders.
Mupita said the board was managing the process.
Nine of MTN’s executives have signed a memorandum backing Mupita, according to people with knowledge of the matter who asked not to be identified because they’re not authorised to discuss the matter.
Another executive later added his support via email, bringing the number to 10, said the people.
According to the company’s website, the company has 15 executives, excluding Mupita.
“Corporate governance failures are of serious concern” to the Public Investment Corp., Africa’s largest fund manager and MTN’s top shareholder, said in response to Bloomberg questions.
“These may adversely affect business operations of investee companies and cause potential value destruction for shareholders.”
Mupita earlier this week sent a letter to staff assuring them that MTN has governance processes in place to address employee matters, including those concerning senior leadership.
“The group board is going through the necessary processes to understand the matters and will address them,” according to the letter seen by Bloomberg.
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