NCC Slashes MTN ’ s Fine To N 674bn, CEO Quits

NCC Slashes MTN ’ s Fine To N 674bn, CEO Quits

Everest Amaefule and Ozioma Ubabukoh The MTN Group on Thursday said that it had received a formal letter from the Nigerian Communications ... 00:13

Everest Amaefule and Ozioma Ubabukoh
The MTN Group on Thursday said that it had received
a formal letter from the Nigerian Communications
Commission confirming the reduction of the N1.04tn
($5.2bn) fine imposed on its Nigerian subsidiary to
N674bn ($3.4bn).
The letter, dated December 2, 2015, was a response
to MTN’s initial request to NCC for a reduction in the
fine.
According to the NCC response to an earlier plea for
leniency by the group, the fine, which relates to the
late disconnection of 5.1 million unregistered MTN
Nigeria Subscriber Identification Module cards in
August and September, must now be paid on or
before December 31, 2015.
It also emerged on Thursday that as a consequence
of the fine, the Chief Executive Officer of its Nigerian
subsidiary, Mr. Michael Ikpoki, and the Head of
Regulatory and Corporate Affairs, Mr. Akinwale
Goodluck, stepped down from their positions.
The Chief Operating Officer of MTN Irancell, Ferdi
Moolman, and Amina Oyagbola, were appointed to
replace Ikpoki and Goodluck respectively.
The Executive Chairman, MTN Group, Phuthuma
Nhleko, said in a statement that Ikpoki and
Goodluck’s exit was part of a revised structure and
strengthened leadership aimed at improving the
company’s operational oversight and increase
management capacity.
He said, “This will enable MTN to continue to realise
its strategy and vision, while also ensuring that we
achieve high governance standards and robust risk
mitigation.
“As I said in my last communication to you, MTN
employees are the key to the success of our
organisation and I continue to appreciate your support
during this period of transition. Welcome to our new
joiners and congratulations to those who are in new
positions.”
Nhleko had earlier said that MTN would urgently re-
engage with the Nigerian authorities before
responding formally to the NCC letter informing it of
the cut to the fine and the new deadline for payment,
adding, “It is essential for the company to follow due
process to ensure the best outcome for the company,
its stakeholders and the Nigerian authorities; and
accordingly, all factors having a bearing on the
situation will be thoroughly and carefully considered
before the company arrives at a final decision.”
Nhleko subsequently advised shareholders to
continue to exercise caution when dealing in the
company’s securities until a further announcement is
made.
The Chief of Staff to the President, Abba Kyari, had
taken over negotiations with MTN officials regarding
the fine from Vice President Yemi Osinbajo.
The change of guard had been informed by a conflict
of interest as Osinbajo had in his assets declaration
disclosed that he had shares in the leading mobile
operator.