The resignation of MTN’s group chief executive officer Sifiso Dabengwa should not be seen as an admission of wrongdoing, the operator’s spokesperson said.<\/p>\n
MTN on Monday confirmed that Dabengwa had resigned following the company having been fined $5.2bn in Nigeria for failing to disconnect five million unregistered SIM in a timely manner in the country. MTN said in a market update to shareholders that it’s still engaging with the Nigerian Communications Commission (NCC) on its mega fine in Nigeria.<\/p>\n
Dabengwa further said in a statement on Monday morning that his resignation was in the \u201cinterest of the company and its shareholders\u201d.<\/p>\n
\u201cHe went on to say that it was an honouring gesture – our position is that we don\u2019t want his resignation to indicate or confirm any wrongdoing,\u201d Chris Maroleng, MTN group executive of Corporate Affairs, told Fin24.<\/p>\n
Maroleng would also not be drawn on whether MTN’s fine in Nigeria could be a means for the country to make up for its lower oil revenues this year.<\/p>\n
\u201cWe cannot really further any speculation around the intentions of the regulator \u2013 though the size of the fine took us by surprise,\u201d Maroleng told Fin24.<\/p>\n
It’s been widely reported that the NCC has set MTN a payment deadline of November 16.<\/p>\n
\u201cWe anticipate before then – November 16 – some kind of response with the authorities in Nigeria,\u201d Maroleng said.<\/p>\n
In the meantime, MTN has appointed former group chair Phuthuma Nhleko as interim executive chair while the company searches for someone to permanently replace Dabengwa.<\/p>\n
Nhleko\u2019s particular experience in Nigeria and emerging markets was a deciding factor in his appointment, said the company.<\/p>\n
\u201cThe gravity of current events in Nigeria required MTN to act swiftly and the board felt that Phuthuma Nhleko had the necessary experience especially in Nigeria,\u201d said Maroleng.<\/p>\n
He said that MTN was committed to driving its agenda in all its emerging markets and Nhleko\u2019s appointment was an indicator of the operator\u2019s intentions.<\/p>\n
\u201cThis should indicate to the market our intention to address the situation seriously.\u201d<\/p>\n
Should the NCC though decline to accept a fine reduction, it could potentially force MTN to cease operations in Nigeria. Maroleng, however, declined to comment on how the company would deal with that possibility.<\/p>\n
\u201cWe engage with those regulators and any comment now would be premature.\u201d<\/p>\n
MTN’s share price on Monday morning in Johannesburg was down 1.1% in trade to R155.70 at 09:57.<\/p>\n
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