Johannesburg - MTN Group’s largest shareholder has questioned the role that the board of directors played in the events that lead to Africa’s largest company being fined a record $5.2 billion by Nigerian regulators.
The Public Investment Corporation, which owns 13 percent of Johannesburg-based MTN, called on the board to take greater responsibility for the fine imposed by the Nigerian Communications Commission, according to a statement on Monday.
The Pretoria-based money manager is also seeking a meeting with MTN executive chairman Phuthuma Nhleko, who is assuming control of the company after Sifiso Dabengwa resigned as chief executive officer this weekend.
“The PIC is of the view that a lot more people need to take collective responsibility for the fine that was imposed on MTN Nigeria for alleged failure to comply with regulatory requirements in that country,” PIC CEO Daniel Matjila said in the statement.
“Could risk and compliance have not foreseen that there were instances of non-compliance, which could lead to penalty? What actions were taken to address non-compliance and mitigate possible fallout?”
The mobile-phone company has until November 16 to pay the levy, which was imposed for missing a deadline to disconnect 5.1 million customers with unregistered SIM cards
Nhleko will lead the conversations with the NCC after Dabengwa resigned. The company’s shares have lost about 16 percent of their value since the fine was made public two weeks ago.
BLOOMBERG