Mtn given deadline of dec 31st to Pay N674bn fine

GFINALLY, the Nigerian Communications
Commission, NCC, has reduced the N1.04 trillion
fine it imposed on MTN Nigeria to N674 billion.
However, the commission has also mandated the
telecom operator to pay the fine on or before
December 31, 2015.
The fine imposed on the telecom operator was due
to what NCC described as MTN’s inability to
disconnect about 5.1 million Nigerian subscribers
improperly registered on its network, after several
warnings in August and September 2015.
In reaction, MTN has said it would carefully study
the new development and would mandate its
Executive Chairman, Phuthuma Nhleko, to
immediately and urgently re-engage with the
Nigerian authorities before responding formally.
The reduction, which represents a 25 per cent slash,
provides MTN with a reprieve, after series of
meetings which have seen several officials from
South Africa thronging the country to negotiate the
fine.
Ikpoki, Goodluck resign
However, the reprieve did not come without costs
as about three of the company’s top and finest
management officials, including two Nigerians,
Messrs Michael Ikpoki and Akinwale Goodluck,
have been relieved of their duties following a
management shake up as a result of the
controversial fine.
While Ikpoki was MTN Nigeria’s CEO, Goodluck
was Head of Regulatory and Corporate Affairs, until
yesterday when MTN Group suddenly announced
their resignation.
In their stead, Ferdi Moolman and Amina Oyagbola
take positions as CEO and Head of Regulatory and
Corporate Affairs, respectively.
Earlier, the Group CEO of MTN, Mr Sifiso Dabengwa,
had resigned in likewise manner, when the pressure
of the fine began to build hard on the company.
Acting Group CEO, Phuthuma Nhleko, said the
shake up at MTN will strengthen leadership and
improve operational oversight, as well as engender
robust risk mitigation.
According to him, “this revised structure and
strengthened leadership will improve operational
oversight and increase management capacity. This
will enable MTN to continue to realise its strategy
and vision, while also ensuring we achieve high
governance standards and robust risk mitigation.”
Informing its shareholders of the development,
yesterday, MTN said after further engagements with
the Nigerian authorities, it has received a formal
letter dated December 2, 2015 from the NCC
informing the company that, after considering the
company’s request, it has taken the decision to
reduce the fine on the MTN Nigerian business from
the original N1,040,000,000,000 to N674 billion
which has to be paid by December 31, 2015.
However, “the company is carefully considering the
NCC’s reply, and the Executive Chairman, Phuthuma
Nhleko, will immediately and urgently re-engage
with the Nigerian authorities before responding
formally, as 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.”
Shake up/new operating structure
Meanwhile, the company also used the opportunity
to announce a shake up in its management level
and introduced new operating structure.
The new structure will see three regions, South and
East Africa, SEA, West and Central Africa, WECA
and Middle East and North Africa, MENA.
The group said the review was with a view to
strengthening operational oversight, leadership,
governance and regulatory compliance across its 22
country operations in Africa and the Middle East.
It announced that “effective December 1, 2015, Ms
Jyoti Desai assumed the new position of Group
Chief Operating Officer (COO), reporting to the
Executive Chairman, Phuthuma Nhleko.