Following the N1.4 trillion ($5.2 billion) fine slammed MTN Nigeria by the Nigerian Communications Commission (NCC) over delayed disconnection of unregistered mobile phone numbers, MTN Group in South Africa, Monday, announced the resignation of its Chief Executive Officer, Mr. Sifiso Dabengwa, from office.
His exit was announced Monday morning to shareholders at the Johannesburg Stock Exchange.
The statement read: “MTN wishes to inform the market that MTN’s Chief Executive Officer, Mr. Sifiso Dabengwa, has resigned. 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,” stated Dabengwa.
Nhleko, the current non-executive Chairman has agreed to act as Executive Chairman for a maximum period of six months while the company identifies a successor for Dabengwa.
Nhleko who had served as Non-executive Director and Chairman of MTN from July 2001 until June 2002 and thereafter as an Executive Director, Group President and CEO to March 2011, had also chaired the group in a non-executive capacity for the past two and half years.
He said, “I will assume responsibility as Executive Chairman for the next six months as 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.”
To ensure compliance with King III, Mr. Alan van Biljon will continue to serve as the Lead Independent Director on the MTN board of directors (MTN Board) while Nhleko takes over executive responsibility.
“Together with the MTN Board, my second priority will be to find an appropriate Chief Executive Officer to take MTN forward. I will then revert to my Non-executive Chairman role,” Nhleko said.
Meanwhile, stakeholders were also assured that MTN will continue to inform them of any material engagements with the Nigerian authorities through the Stock Exchange News Service of the JSE Limited (SENS). They were however advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made.
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