New CEO Nhleko pulls a rabbit out the hat; MTN Nigerian fine cut by $1.8bn

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A long-time colleague of MTN chairman Phutuma Nhleko confided his reappointment as CEO was the best chance the company had to get its massive Nigerian fine reduced. But even he was sceptical the long-time driver of the group’s success could pull it off. Not for the first time, Nhleko’s business acumen has surprised us all. It was on his insistence that MTN enter Nigeria 15 years ago, at a time when literally the rest of the world was too nervous to consider it. Now Nhleko’s personal involvement has resulted in the previously resistant Nigerian authorities agreeing to drop the fine from $5.2bn to $3.8bn. Given the “crime” the scale remains still outrageous. But MTN shareholders will obviously be delighted after the price of their investment had dropped by a quarter on news of the fine. The cell phone company’s Nigerian bossman Michael Ikpoki has been fired – presumably as part of the deal. Last month MTN Group CEO Sifiso Dabengwa fell on his sword, confirming our suggestion that in instances like this, heads always roll. Sadly, only In the private sector, it seems. – Alec Hogg    

Zapiro and MTN
Zapiro’s brilliant interpretation of the initial $5.2bn fine. For more Zapiro magic, click here.

By Renee Bonorchis

(Bloomberg) — The Nigerian Communications Commission cut the fine imposed on MTN Group Ltd., Africa’s biggest mobile- phone operator, to $3.4 billion from $5.2 billion, payable by the end of this month.

“MTN 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,” the Johannesburg-based company said in a statement Thursday.

Travellers walk past an MTN telecom shop at King Shaka International Airport in Durban, South Africa, November 16, 2015. Nigeria is standing by a $5.2 billion fine imposed on MTN Group for failing to disconnect unregistered SIM cards though Monday's payment deadline may lapse while a company appeal is considered, Nigeria's telecoms regulator said. REUTERS/Rogan Ward
Travellers walk past an MTN telecom shop at King Shaka International Airport in Durban, South Africa, November 16, 2015. Nigeria is standing by a $5.2 billion fine imposed on MTN Group for failing to disconnect unregistered SIM cards though Monday’s payment deadline may lapse while a company appeal is considered, Nigeria’s telecoms regulator said. REUTERS/Rogan Ward

The Nigerian regulator imposed the original levy on MTN in October for failing to meet a deadline to disconnect 5.1 million unregistered subscribers. The company’s shares have lost 23 percent of their value since the fine was made public on Oct. 26. Chairman Phuthuma Nhleko took an executive position in November and led negotiations with the NCC after Chief Executive Officer Sifiso Dabengwa resigned.

Nhleko will “immediately and urgently re-engage with the Nigerian authorities before responding formally,” MTN said in the statement. “All factors having a bearing on the situation will be thoroughly and carefully considered before the company arrives at a final decision.”

MTN named Ferdi Moolman as head of the Nigerian operations, replacing Michael Ikpoki.

Read also: UPDATE: Nigeria extends MTN’s $94.2m licence to 2021 despite $5.2bn fine

From News24

Johannesburg – Africa’s biggest mobile network MTN has announced that its Nigerian chief executive officer has resigned amid a multi-billion dollar fine in that country.

The company announced in a statement on Thursday morning that Michael Ikpoki, its Nigerian CEO, has handed in his resignation with immediate effect. MTN Nigeria’s head of regulatory and corporate affairs, Akinwale Goodluck, has also resigned.

The former chief operating officer and chief financial officer at MTN Nigeria, Ferdi Moolman, will become that business unit’s CEO. Nigerian national Amina Oyagbola has also been named head of regulatory and corporate affairs at MTN Nigeria.

The resignations in Nigeria come amid MTN being fined $5.2bn by regulators in that country for failing to disconnect up to five million unregistered SIM cards in that country.

However, in a market update to shareholders on Thursday, MTN said that the Nigerian Communications Commission (NCC) had agreed to cut the fine to $3.4bn and that this penalty needs to be paid by December 31 2015.

In the wake of the announcement of the fine in late October, MTN’s group chief executive officer Sifiso Dabengwa subsequently quit amid the company’s share price losing a fifth of its value. MTN’s former CEO Phuthuma Nhleko was then appointed as executive chairperson and tasked with tackling the fine.

MTN also said that the search for a new group CEO is underway and remains a priority.

‘Implementing a previous structure’

Meanwhile, along with the announcement of the Nigerian resignations, MTN said that the group has resolved to re-implement its previous reporting structure which splits its operations into three regions: West and Central Africa  (WECA), South and East Africa (SEA),  and Middle East and North Africa (MENA).

The company also announced other new senior appointments in line with this structure.

“This revised structure and strengthened leadership will improve operational oversight and increase management capacity,” said MTN group executive chairman Phuthuma Nhleko in a statement.

MTN has over 230 million subscribers across Africa and the Middle East and over 60 million in Nigeria, making it that country’s biggest mobile network. – Fin24

Source: http://www.fin24.com/Tech/Companies/mtn-fine-slashed-as-nigeria-ceo-quits-20151203

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