The Nigerian Communications Commission recently imposed a fine of around R73 billion on MTN Nigeria, sending the company\u2019s share price plunging.<\/p>\n
The fine was imposed because MTN Nigeria did not disconnect 5.1 million unregistered subscribers as required by the country\u2019s SIM registration rules.<\/p>\n
The news broke early on 26 October, but shareholders had to wait until much later that day for an official announcement from MTN.<\/p>\n
The company initially evaded questions regarding the issue, and the lack of transparency from MTN was widely criticized.<\/p>\n
Business Day TV host and investor Simon Brown said<\/strong><\/a>\u00a0MTN set all sorts of lows for corporate disclosure.<\/p>\n He joked that you have to admire a company which \u201ccan say nothing, and then deplore the resultant frenzy of speculation\u201d.<\/p>\n Speaking on Business Day TV, Sasfin Securities\u2019 David Shapiro said its\u00a0loss is not only around R70 billion in market cap, but also the trust of investors.<\/p>\n \u201cThey [MTN] have been appalling. They [management] brought a lot of ruin to the company,\u201d he said.<\/p>\n Shapiro questioned where former MTN CEO Sifiso Dabengwa was during the debacle, and why we have not heard from the MTN Nigeria CEO.<\/p>\n He previously said\u00a0investors want clarity on why the fine was imposed, and what is happening behind the scenes. \u201cThey have to let us know how the negotiations are progressing.”<\/p>\n On 9 November\u00a0MTN announced<\/strong><\/a> that Sifiso Dabengwa had resigned as CEO, following the incident\u00a0in Nigeria.<\/p>\n “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,” said Dabengwa.<\/p>\n MTN appointed former MTN CEO Phuthuma Nhleko as executive chairman in a temporary capacity.<\/p>\n Nhleko has agreed to act as executive chairman for a maximum period of 6 months while the company identifies a successor for Dabengwa.<\/p>\n Behind MTN\u2019s R73-billion Nigeria mess<\/strong><\/a><\/p>\nMTN CEO resigns<\/h3>\n
More on MTN<\/h3>\n