CEO Sifiso Dabengwa resigns following $5.2 billion NCC fine

A statement released by MTN Group on Monday morning confirms Sifiso Dabengwa’s resignation and states that non-executive chairman Phuthuma Nhleko will be replacing the departing CEO

 

According to various media reports, the group chief executive officer of South African-based telecoms giant MTN, Sifiso Dabengwa, has formally tendered a letter of immediate resignation following the $5.2 billion fine scandal between the company and the Nigerian branch of MTN.

Bloomberg reports that Dabengwa resigned over the weekend after consultation with the board adding that his financial compensation is unresolved according to MTN spokesman, Chris Maroleng.

A statement released by MTN Group on Monday morning confirms Dabengwa’s resignation and states that non-executive chairman  will be replacing the departing CEO for a maximum of six months while the company identifies a successor.

“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,” Dabengwa said in the statement.

In his statement, stand-in CEO Nhleko said: “I 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.”

MTN Nigeria was fined $5.2 billion by the NCC for failing to deactivate improperly registered SIMs and given till November 16, 2015 to pay up.

Meanwhile, in the time since news of the fine broke, MTN shares have lost almost a quarter of their value and trading of the company’s shares have already been suspended by the Johannesburg Stock Exchange.

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