Company's largest shareholder tackles board following CEO's resignation

MTN Group’s largest shareholder, the Public Investment Corp., has challenged the role of the board of the South Africa-based company as regards the events that led to the company being fined $5.2 billion by the NCC.

In a statement released today, the PIC, which owns 13 percent of the MTN Group, called on the board to take greater responsibility for the fine imposed on the company by the Nigeria Communications Commission, according to a report by Bloomberg.

The report further reveals that the Pretoria-based money manager is also seeking a meeting with Phuthuma Nhleko, MTN executive Chairman who is assuming control of the company after CEO Sifiso Dabengwa resigned over the weekend.

“The PIC is of the view that a lot more people need to take collective responsibility for the fine that was imposed on MTN Nigeria for alleged failure to comply with regulatory requirements in that country,” PIC CEO Daniel Matjila said in the statement, according to Bloomberg.

READ: CEO Sifiso Dabengwa resigns following $5.2 billion NCC fine

“Could risk and compliance have not foreseen that there were instances of non-compliance, which could lead to penalty? What actions were taken to address non-compliance and mitigate possible fallout?” the PIC CEO added.

MTN Nigeria was fined $5.2 billion by the NCC for refusing to deactivate about 5.1 million preregistered SIMs.

Additionally, the company has been given till November 16 to pay the fine while its shares has already lost about 16 percent of their value since the fine became public two weeks ago.