FINALLY, the Nigerian Communications Commission, NCC, has reduced the
N1.04 trillion fine it imposed on MTN Nigeria to N674 billion.
However, the commission has also mandated the telecom operator to pay the fine on or before December 31, 2015.
The fine imposed on the telecom operator was due to what NCC
described as MTN’s inability to disconnect about 5.1 million Nigerian
subscribers improperly registered on its network, after several warnings
in August and September 2015.
In reaction, MTN has said it would carefully study the new
development and would mandate its Executive Chairman, Phuthuma Nhleko,
to immediately and urgently re-engage with the Nigerian authorities
before responding formally.
The reduction, which represents a 25 per cent slash, provides MTN
with a reprieve, after series of meetings which have seen several
officials from South Africa thronging the country to negotiate the fine.
Ikpoki, Goodluck resign
However, the reprieve did not come without costs as about three of
the company’s top and finest management officials, including two
Nigerians, Messrs Michael Ikpoki and Akinwale Goodluck, have been
relieved of their duties following a management shake up as a result of
the controversial fine.
While Ikpoki was MTN Nigeria’s CEO, Goodluck was Head of Regulatory
and Corporate Affairs, until yesterday when MTN Group suddenly announced
their resignation.
In their stead, Ferdi Moolman and Amina Oyagbola take positions as
CEO and Head of Regulatory and Corporate Affairs, respectively.
Earlier, the Group CEO of MTN, Mr Sifiso Dabengwa, had resigned in
likewise manner, when the pressure of the fine began to build hard on
the company.
Acting Group CEO, Phuthuma Nhleko, said the shake up at MTN will
strengthen leadership and improve operational oversight, as well as
engender robust risk mitigation.
According to him, “this revised structure and strengthened leadership
will improve operational oversight and increase management capacity.
This will enable MTN to continue to realise its strategy and vision,
while also ensuring we achieve high governance standards and robust risk
mitigation.”
Informing its shareholders of the development, yesterday, MTN said
after further engagements with the Nigerian authorities, it has received
a formal letter dated December 2, 2015 from the NCC informing the
company that, after considering the company’s request, it has taken the
decision to reduce the fine on the MTN Nigerian business from the
original N1,040,000,000,000 to N674 billion which has to be paid by
December 31, 2015.
However, “the company is carefully considering the NCC’s reply, and
the Executive Chairman, Phuthuma Nhleko, will immediately and urgently
re-engage with the Nigerian authorities before responding formally, as
it is essential for the company to follow due process to ensure the best
outcome for the company, its stakeholders and the Nigerian authorities
and accordingly all factors having a bearing on the situation will be
thoroughly and carefully considered before the company arrives at a
final decision.”
Shake up/new operating structure
Meanwhile, the company also used the opportunity to announce a shake
up in its management level and introduced new operating structure.
The new structure will see three regions, South and East Africa, SEA,
West and Central Africa, WECA and Middle East and North Africa, MENA.
The group said the review was with a view to strengthening
operational oversight, leadership, governance and regulatory compliance
across its 22 country operations in Africa and the Middle East.
It announced that “effective December 1, 2015, Ms Jyoti Desai assumed
the new position of Group Chief Operating Officer (COO), reporting to
the Executive Chairman, Phuthuma Nhleko.
No comments:
Post a Comment