The Nigerian telecoms regulator, the Nigerian Communications Commission, NCC, penultimate week, slammed MTN Nigeria with N1.04 trillion fine for failing to disconnect subscribers with unregistered and incomplete subscriber identification modules (SIM) cards within the stipulated time.
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Nigeria is MTN’s biggest market, with 28.5 million subscribers, followed by Iran and South Africa.
Mr Maroleng would also not be drawn on whether MTN’s fine in Nigeria could be a means for the country to make up for its lower oil revenues this year.
The fine, which amounts to double MTN’s profit in 2014, was for failing to cut off unregistered mobile users.
This is coming just as the MTN group announced the appointment of Phuthuma Nhleko as Executive Chairman in a temporary capacity following the resignation of Sifiso Dabengwa as its CEO.
“A lot more people need to take collective responsibility for the fine… for the alleged failure to comply with regulatory requirements”, the PIC’s chief executive Daniel Matjila said in a statement. Dabengwa was once the CEO of MTN Nigeria from 2004 to 2006.
The resignation of Dabengwa has not come as a surprise to analysts and market watchers.
Authorities feared MTN top shots who probably had prior knowledge of the fine may have “illegally” traded in company stocks for private gain before the news became public, reports say.
Additionally, the company has been given till November 16 to pay the fine while its shares has already lost about 16 percent of their value since the fine became public two weeks ago.
“I will 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 in a statement on Monday.
Meanwhile, the company also said Mr. Alan van Biljon would continue to serve as the Lead Independent Director on the MTN board of directors (MTN Board), while Nhleko takes over executive responsibility.
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Ratings agencies Moody’s and Fitch lowered MTN’s credit rating outlook to “negative” last month flagging the risk of significant cash outflow and the likely damage to the Nigerian business due to lengthy talks.
