MTN Group CEO resigns amid $5.2 bln Nigerian fine

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South Africa’s MTN Group said on Monday its chief executive will resign immediately as the telecoms firm continued talks with the Nigerian government over a $5.2 billion fine.

Reuters

Non-executive chairman Phuthuma Nhleko was appointed executive chairman for a maximum of six months after Sifiso Dabengwa stepped down, Africa’s biggest mobile phone company said in a statement.

MTN was fined in October by the Nigerian telecoms regulator for failing to cut off users with unregistered SIM cards.

“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.

MTN said it continued talks with authorities in Nigeria, the company’s biggest market, over the fine.

Dabengwa has been chief executive of MTN since 2011.

Shares in MTN have slid about 17 percent since Oct. 26 to 157 rand by Friday, following news of the charge.

Ratings agencies Moody’s and Fitch lowered MTN’s credit rating outlook to “negative” last month flagging the risk of significant cash outflow and the likely damage to the Nigerian business due to lengthy talks.

6 COMMENTS

  1. Sifiso now time to and join your dad Dumiso to run ZAPU … and make sure this time round you kep a register of your members!!!

  2. This fine is too excessive i think there is an element of vindictiveness on the part of the nigerians plus their calculations are based on outdated Revenue per user which are higher than is the case now.The fine will dampen FDI even by global standards its excessive i thing the Nigerian government is trying to find easy cash to plug a yawning and substantial budgetary gap due to a decline in oil revenues and MTN should haven known better do Dabengwe will be able to find another job with such rewards ,the guy was was racking them millions in rands as well as US$.Am proud of you for managing a multibillion dollar entity with a respectable global footprint.Ndoma Zimba anodadisa kaaya.

  3. Sifiso was doing a superby job for MTN. He has also done a good thing to resign and conserve shareholder value. This is in line with good corporate governance. In Zimbabwe we should be proud of our son Sifiso for having steered a listed company on JSE to such heights. Good luck Sifiso.

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