MTN CEO RESIGNS AS NCC INSISTS ON PAYMENT OF N1TRILLION FINE

According to the report by News Watch Times, MTN Group Chief Executive, Sifiso Dabengwa, yesterday, resigned his position.

His resignation is coming on the heels of a record $5.2 billion (N1.04 trillion) fine imposed on the company by the Nigerian Communications Commission (NCC) for failing to deactivate 5.1-million unregistered SIM cards on its network.

MTN, in a statement, said yesterday that Dabengwa has been replaced by former CEO and Chairman, Phuthuma Nhleko, 55, for six months, while the company searches for a permanent successor.

“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,” Dabengwa said in a statement.

Meanwhile, despite this development, the Federal Government through its telecommunication regulator, NCC, is bent on payment of the penalty imposed on MTN, stating that the November 16 deadline date for the payment of the fine is sacrosanct.

A senior NCC official, who spoke with the Newswatch Times yesterday on the fine issue, said the commission has been under intense pressure from the MTN, but “we will not waive the fine.”

Though the official confirmed that the delegation from MTN South Africa is in the country, he said “we are yet to meet officially.”

He said: “I can confirm to you that the November 16 deadline is sacrosanct despite change in their leadership and delegation. And we have told you we are not directly in charge of this case again. Coming to us may not bring out anything meaningful for them. Yes, they are putting pressure on us, but we are not going to yield to it…We are not ruling out any diplomatic settlement; we believe the Presidency has the final say.”

NCC on October 20 slammed a N1.4 trillion in fines on MTN for failing to disconnect some 5.1 million unregistered subscribers, but the news only came to light last Monday.

Meanwhile, the South Africa’s MTN Group has said Nhleko will lead its continuing talks with NCC in the bid to get a reduction on the fine.

Newswatch Times gathered that the MTN board chose Nhleko because of his vast experience in Nigeria and in-depth knowledge of the company and has reassured its shareholders that its affairs are in capable hands under Nhleko who is “no stranger to the business as he served as Non-executive Director and Chairman of MTN from July 2001 until June 2002 and thereafter as an executive director, Group President and CEO until March 2011.”

Nhleko has subsequently chaired the Group in a non-executive capacity for the past two and a half years (29 May 2013), according to MTN.

“I will assume responsibility as Executive Chairman for the next six months as I 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,” Nhleko said.

Nigeria is MTN’s largest market and contributes more than a third of its revenues. The fine, which amounts to double MTN’s profit last year, was for failing to cut off unregistered mobile users.