N1.4tn fine: MTN CEO resigns

Following the recent $5.4billion (N1.4 trillion) fine imposed on the company by the Nigerian Communication Commission (NCC) the Group CEO of MTN, Sifiso Dabengwa on Monday resigned from his position as head of the telecommunications giant.
NCC had imposed the fine on the company for failing to cut off customers with unregistered SIM cards.
His resignation was communication to the shareholders on Monday.
The former group CEO, and now non-executive chairman, Phuthuma Nhleko is to replace Dabengwa for the next six months, until a replacement is named as the company continues to dialogue with the Nigerian government over the fine.

Read also: JSE suspends trade in MTN stocks

MTN said in a statement issued in Johannesburg on Monday that “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,” Mr. Dabengwa was quoted as saying in the statement.
“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,” Nhleko said.
The company which has up to November 16 to pay up said it will continue to inform shareholders of any engagements with the Nigerian government.

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