Ex-CEO received $1.6 million payout following NCC fine saga

Media reports reveal that South Africa‘s MTN paid Sifiso Dabengwa, its former CEO, $1.6 million after he resigned over a record fine imposed on the company by Nigerian authorities.

Dabengwa resigned back in November after Nigerian regulator, the NCC, imposed a $5.2 million fine on MTN’s Nigerian unit in October.

MTN said in its annual report on Monday that Dabengwa was awarded a total payout of 40.6 million rand.

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Non-executive chairman Phuthuma Nhleko was named executive chairman of Africa‘s biggest telecom company for a period of six months, to help resolve the fine, following Dabengwa's resignation.

MTN’s share price has gone down almost 20% since October when the fine was imposed while the stock had fallen 1.21% at 145.59 rand by 1407 GMT.

Last year, Nigeria imposed a deadline on mobile operators to cut off unregistered SIM cards, which MTN failed to adhere to, amid fears the lines were being used by criminal elements, including militant Islamist group Boko Haram.