The Group Chief Executive Officer of telecom company, MTN, Sifiso Dabengwa, has resigned following the massive N1.04 trillion ($5.2 billion) fine imposed on the company by the Nigerian Communications Commission, NCC.
NCC hsd sanctioned MTN for failing to disconnect 5.1 million unregistered subscribers.
Non-Executive Chairman, Phuthuma Nhleko, will act as executive chairman for a maximum period of six months while the company identifies a successor to Dabengwa, MTN said in a statement issued in Johannesburg on Monday.
“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,” Dabengwa was quoted as saying in the statement.
MTN has until Nov. 16 to pay the Nigeria penalty, which relates to the timing of the disconnection of 5.1 million subscribers and is based on a charge of N200,000 ($1,008) for each unregistered customer.
The company’s shares lost almost a quarter of their value following the disclosure of the fine, before a partial recovery.
“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,” Nhleko said.
MTN said it will continue to inform shareholders of any engagements with the Nigerian government.
The South African bourse had last week suspended trading in the shares of telecoms firm following the huge fine.
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