Fine: MTN shareholder wants more workers to go

MTN’s largest shareholder, the Public Investment Corporation, has called for more employees of the company to resign over the N1.04tn fine imposed on it by the Nigerian Communications Commission.

It made the call on Wednesday, two days after Sifiso Dabengwa took responsibility for the penalty and resigned as MTN Group’s President and Chief Executive Officer, according to Reuters.

The PIC, which is based in South Africa, said with the huge fine hanging on the MTN Group and its shareholders, the resignation of other employees who were responsible for acts that led to the fine had become necessary.

“A lot more people need to take collective responsibility for the fine, and for the alleged failure to comply with regulatory requirements,” the Chief Executive Officer, PIC, Daniel Matjila, said.

He added that the corporation was meeting with the new Executive Chairman of the MTN Group, Phuthuma Nhleko, “about his plans to tackle the fine and get a reduction.”

However, the Group Public Affairs Manager, MTN, Chris Maroleng, said the company was not in doubt about Nhleko’s ability to tackle the fine, saying it believed that the six months given to him to act as executive chairman would be successful.

“The board chose Nhleko because of his vast experience in Nigeria and his in-depth knowledge of the company,” Maroleng said.

Dabengwa had been the chief executive of MTN since 2011 when he took over from Nhleko.

Momentum SP Reid analyst, Sibonginkosi Nyanga, shared Maroleng’s views, saying, “Obviously, having only six months, he is there to do something about the fine. He is the guy who built MTN into what it is.”

Meanwhile, the manager of a $3.5bn emerging markets fund at Wells Fargo and Co., Derrick Irwin, on Wednesday said that the MTN Group had been the victim of a “shakedown” by the NCC.

“This shakedown has serious negative investment implications for the country,” he said.

The NCC imposed the penalty on MTN for failing to meet a deadline to disconnect 5.1 million unregistered subscribers. MTN’s shares have lost about a fifth of their value since the fine was made public on October 26.