African telecoms firm MTN chief quits over huge Nigerian fine
The chief executive of South Africa-based mobile phone operator MTN has resigned over a $5.2 billion fine imposed on the company in Nigeria, the telecoms giant said in a statement Monday.
“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,” CEO Sifiso Dabengwa said.
MTN has appointed non-executive chairman Phuthuma Nhleko as executive chairman for a maximum of six months while the company identifies a successor for Dabengwa, the statement said.
The Nigerian Communications Commission (NCC) fined Africa’s largest telecoms firm for missing a deadline to deactivate 5.1 million unregistered SIM cards.
The Johannesburg Stock Exchange (JSE) has launched an investigation into MTN for “possible insider trading” before the company announced it had been hit by the fine.
Its share price fell from 190.84 rand ($13.4), shortly before the fine was revealed, to close at 157.45 rand on Friday — a fall of 17.5 percent in two weeks.
Shares were steady at 157.45 rand on Monday morning, the lowest price since April 2013.
The probe by the JSE could result in South Africa’s bourse operator slapping MTN with another hefty fine or result in criminal charges.
Nigeria, Africa’s most populous country, is MTN group’s largest market where it had over 62.8 million subscribers by the second quarter of this year.
Nhleko said he would “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”.
“Together with the MTN Board, my second priority will be to find an appropriate Chief Executive Officer to take MTN forward. I will then revert to my non-executive Chairman role,” Nhleko said.
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3 Comments
Sterling Homes ltd selling Plots and Acres of Land//
Hebron garden estate is owned by Sterling homes Ltd and it’s
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about 6minutes drive to Eleko beach and 15minutes drive to Lekki free trade
zone. There are several notable Landmarks before the estate. These include, The
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Estate & lots more. PAYMENT PLAN FOR A PLOT: *Smart plan: Outright payment
#2.8m. *Easy Plan: #3m. Spread #210,000 for 10months after the initial deposit
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Havilah park and garden is an estate located about 6mins
drive off the Lagos-Ibadan expressway. It’s about 25mins drive to Berger
bus-stop. The estate is fenced with a gate house, and our ultra- modern
borehole is already in place. The price of a plot is #630,000 outright, and we
still have other installment plan also. For more information and site
inspection call Yemi Amodu @ Sterling Homes LTD: Plot 2, River Valley Estate,
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Moriah park is situated at Agbowa, Ikorodu. The estate is
facing the Lagos state housing scheme popularly called Fashola estate. It’s
fenced round with a gate house and an industrial borehole has been constructed
at the site as well. It’s selling for a promotional offer of #750,000 outright,
though we still have other installment payment option. For more information and
site inspection, call Yemi @ Sterling Homes LTD: Plot 2, River Valley Estate,
Ojodu Berger, Lagos. Mobile: 07084546154, 08136119495
1 year ago, South Africa seizes $9million from Nigeria underground arms deal. months later, Nigerians are killed in SA xenophobia. Two weeks ago in India, Nigeria declared. we are broke’. shortly after MTN based out of SA is fined $5billion.Straight to the single treasury account! Hurray. salaries will be paid till january. instead of borrowing from IMF. smart. potential investors beware.
hahaha!
We will review and take appropriate action.