MTN Gets Thursday December 31 Deadline To Pay N1.04trillion Fine Reduced To N674billion

Telecommunication company has a new fine and a new deadline to meet.

According to a report available to societynowng.com

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.