MTN Boss Quits Over NCC's N1.04 Trillion Fine

Sifiso Dabengwa, the Group CEO of Telecom giant MTN, has resigned over the recent $5.2b (N1.04 Trillion) fine by imposed on the company by the Nigerian Communication Commission (NCC).

Sifiso Dabengwa, the Group CEO of MTN, has resigned over the recent $5.4b fine

The telecoms CEO in a statement Monday, November 9, said: “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.”

Phuthuma Nhleko the non-executive chairman has been appointed by MTN as the executive chairman for a maximum of six months while the company identifies a successor for Dabengwa, the statement further said.

However 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.

The probe by the JSE could result in another hefty fine or result in criminal charges for MTN.

MTN missed the deadline to deactivate its unregistered customers, prompting a 200,000-naira ($1,000) fine for each unregistered SIM, Premium Times reports.

Nhleko said: “I will 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.”

Africa’s largest telecom giant was fined on Monday, October 26, a record of $5.2bn by NCC. MTN was fined for non-compliance with a deadline set by the NCC to cut off 5.1 million customers with unregistered SIM cards.

SOURCE: NAIJ