How MTN secured $3.4b fine

South African telecommunications company, MTN, have been able to reduce its fine burden imposed by the Nigerian Communication, NCC, as the Nigerian regulator has reduced the fine to $3.4 from the initial over $5 billion.

MTN, in a statement on Thursday, said the NCC has agreed to slash the fine while also announcing the resignation of its Nigerian Chief Executive officer, Micheal Ikpoki.

A statement released by MTN said: “MTN Nigeria’s CEO Michael Ikpoki and the head of Regulatory and Corporate Affairs Akinwale Goodluck have tendered their resignations with immediate effect,” the company said in a statement Thursday morning.

“They are replaced by Ferdi Moolman as MTN Nigeria CEO and Amina Oyagbola as its head of Regulatory and Corporate Affairs. Mr Moolman was previously COO at MTN Irancell and most recently CFO at MTN Nigeria. A Nigerian national, Ms Oyagbola also retairm ns the position of MTN Nigeria’s Head of Human Resources. She formerly headed regulatory affairs at the Nigerian operating company.”

It will be recalled that NCC had sanctioned MTN with a N1.4 trillion fine for its failure to disconnect unregistered and improperly registered lines. However, it’s interim CEO, Phuthuma Nhleko, had been interfacing with the Nigerian government to see how how the company can get a middle way into the fine.

The minister of communications, Adebayo Shittu, had hinted on the possibility of finding a middle way for the telecommunications company so as not to run the company out of the country.

The statement from MTN’s South African headquarters said: “The MTN group has reviewed its operating structure with a view to strengthening operational oversight, leadership, governance and regulatory compliance across its 22 country operations in Africa and the Middle East.

“To this end, the Group has resolved to re-implement its previous reporting structure. This will see MTN Group restructured into three regions – namely West and Central Africa (“WECA”), South and East Africa (“SEA”), and Middle East and North Africa (“MENA”). MTN has also made a number of senior appointments to support this structure.

“Effective 1 December 2015 Jyoti Desai assumed the new position of Group Chief Operating Officer (“COO”). Based in Johannesburg, she reports to the Executive Chairman, Phuthuma Nhleko. Ms Desai has 14 years’ experience at MTN. She has previously held the positions of Chief Information Officer at MTN Nigeria, was COO of MTN Irancell and was recently seconded to support the Nigerian country operations. Her replacement as Group Chief Technology and Information Officer will be announced soon.

“Two regional Vice Presidents (“VP”) have been appointed, also reporting to the Executive Chairman. The VP for WECA is Karl Toriola, with Ismail Jaroudi the VP for MENA. The VP for SEA will be announced soon.

“Based in Nigeria, Mr Toriola has been at MTN for 10 years, having held senior operational roles at MTN Group and MTN Iran. He was formerly also the Chief Technology Officer at MTN Nigeria and CEO at MTN Cameroon.

“Mr Jaroudi has been CEO of MTN Syria since 2006. Prior to this he held senior operational roles for Investcom’s subsidiaries across the Middle East and North Africa.

“Also reporting to the Executive Chairman is the new Group Executive for M&A, Matthew Odgers. The former head of TMT for Africa & the Middle East and head of investment banking for MENA at UBS, Mr Odgers led UBS’s overall relationship with MTN.

It is believed MTN’s interim CEO has been in the country trying to see how the company can get reprieve from the sanction.

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