As the deadline set by the Nigerian Communications Commission (NCC) for MTN Nigeria to pay the N1.4 trillion ($5.2 billion) fine imposed on the company the telecom regulator for failing to disconnect five million unregistered subscribers expires November 16, the operator has stated that its Group Executive Chairman, Mr. Phuthuma Nhleko, is continuing discussions with the Nigerian authorities in seeking ways to amicably resolve the crisis.
In a statement issued this morning at the Group headquarters in Johannesburg, South Africa, the MTN Group, in giving further information to shareholders on the subject, wrote:
“Shareholders are advised that the Executive Chairman of the Company, Mr. Phuthuma Nhleko, has personally met with the Nigerian authorities to continue the ongoing discussions with them regarding the fine of N200,000 for each unregistered subscriber (“the fine”), the equivalent of US$5.2 billion imposed on MTN Nigeria by the Nigerian Communications Commission (“NCC”).
“These discussions include matters of non-compliance and the remedial measures that may have to be adopted to address this,” the statement added.
According to the MTN statement, although the NCC “set a deadline for payment of the fine by Monday, 16 November 2015, shareholders are advised that the Nigerian authorities have, without prejudice, agreed that the imposed fine will not be payable until the negotiations have been concluded.”
The statement added that “MTN is committed to resolving the matter together with the NCC as soon as possible and will continue to update stakeholders of any material developments regarding the afore-mentioned fine via SENS (Stock Exchange News Service).
“Accordingly, shareholders are advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made,” the statement added.
In the wake of the fine and in the ensuing boardroom discussions, the crisis has already taken toll on the company with the resignation of the Group President and CEO, Mr. Sifiso Dabengwa, who threw in the towel in a statement issued on November 9, 2015, stating:
“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.”
Upon his resignation, the Group called upon the Non-Executive Chairman, Nhleko, to assume the full capacity as Executive Chairman for a maximum period of six months, until a successor to Mr. Dabengwa is found.
By MKPE ABANG