MTN board clears CEO

MTN says an independent report found no evidence of improper conduct by its Group CEO, Ralph Mupita, after an anonymous whistleblower would not engage with investigators.

This follows a Sunday Times report citing multiple anonymous sources inside the company alleging that Mupita was playing favourites with an unnamed female executive.

Among the allegations was that Mupita tried to transfer some functions that fall under MTN SA CEO Charles Molapisi to the female executive, whose name is known to MyBroadband.

Concerns over Mupita’s relationship with the executive were reportedly of such concern, it was discussed at a group board meeting in China earlier this year.

It was also the subject of an anonymous whistleblower complaint, which prompted the board to appoint an independent law firm to investigate the allegations.

Amid the allegations, executives reportedly threatened to quit en masse over Mupita’s leadership style.

However, the report also quoted a former MTN executive who said most executives were too afraid to speak out.

This aligns with the whistleblower’s complaint, which stated that a culture of fear now permeates MTN.

A former MTN executive said there was infighting among the leadership and a culture causing underperformance.

They said two or three executives were pushing back against Mupita, but others were afraid of being sidelined if they did so.

Bloomberg reported on Friday that ten of fifteen executives had signed a memorandum backing Mupita. It cited people with knowledge of the matter who asked not to be identified.

Earlier this week, Mupita sent a letter to staff assuring them that MTN has governance processes in place to address employee matters, including those concerning senior leadership.

“The group board is going through the necessary processes to understand the matters and will address them,” he stated.

On Friday, MTN issued a statement via the JSE news service saying that the matter had been investigated and closed.

“The group board held a special meeting on Wednesday, 4 September 2024, to deliberate on a report by an independent law firm, assisted by counsel, tasked to verify allegations contained in an anonymous complaint against members of the MTN executive,” it stated.

“The independent report stated that attempts to engage with the complainant were unsuccessful and found that there was no evidence of improper conduct by those cited in the complaint.”

The board said it deliberated and accepted the report’s finding.

“The board is of the view that the matter has been addressed and is now closed,” it said.

“The board further expressed its full support for the Group Chief Executive Officer and the MTN strategy.”