Johannesburg - It is D-Day for mobile network operator MTN today as the Nigerian Communications Commission (NCC) deadline for the payment of the $5.2 billion (R74.69bn) fine looms.
MTN is expected to pay the fine for failing to disconnect millions of unregistered subscribers from its network today.
An MTN insider claimed that newly appointed executive chairman Phuthuma Nhleko spent the week in Nigeria trying to broker a better deal for the embattled operator.
“Nhleko wants to make sure that the issue is resolved as amicably as possible with the Nigerians,” the insider said.
“So for him it is all or nothing, because the future existence of the company in Nigeria could be highly dependent on the outcome of the talks.”
Continuing talks
MTN has said it is continuing talks with authorities in Nigeria over the fine.
Nhleko was named executive chairman of MTN for a period of up to six months after Sifiso Dabengwa stepped down as chief executive with immediate effect last Monday.
MTN was not available for comment. The company, Africa’s largest mobile operator, has 62 million subscribers in Nigeria.
Soon after his appointment to the position last week, Nhleko made it clear that his immediate priority was to meet with the Nigerian authorities to resolve the hefty fine that threatened to cripple the telecoms giant.
In an interview with Business Report, Nhleko said he was optimistic that a solution would be found soon, but he refused to be drawn on details about the discussions with the NCC.
“The priority really right now is to get to some sort of resolution in Nigeria and we’re hopeful that will happen within a reasonable period, which hopefully you’re looking at two weeks or whatever, all things being equal. But as I have indicated, it can’t be guaranteed,” Nhleko said.
The South African government on Friday made it clear that it would not get involved in the negotiations between MTN and the NCC.
Not involved
The Department of International Relations and Co-operation (Dirco) said the matter was an issue between MTN and the Nigerian authority.
“We are certainly not involved,” Dirco spokesman Clayson Monyela said.
“We have made it clear over time that while we value our (political) relations with Nigeria, the MTN issue is beyond our involvement.”
Earlier this month, Minister in the Presidency, Jeff Radebe, said the MTN issue would not affect “cordial relations” between Nigeria and South Africa.
He said South Africa was treating the matter as a compliance issue with the laws and regulations of Nigeria.
“That is the context within which we should look at this matter,” Radebe said. “We do hope that the talks between MTN and the Nigerian authorities will bear fruit, because we are very desirous that economic relations between Nigeria and South Africa continue from strength to strength.”
An analyst, who refused to be named, said South Africa had adopted a wait-and-see attitude on the matter, because it was still studying Nigerian President Muhammadu Buhari’s attitude towards South Africa.
The economist said it would be suicidal for South Africa to get involved at the moment.
“Buhari has been a little cold towards South Africa, so the government would not want to be seen to be pushing him further away,” the analyst said.
“Remember that Buhari won the elections on the anti-corruption ticket and he would not want that to be challenged. So in a way, MTN is on its own on the fine, because South Africa would not want to burn its bridges.”
* Additional reporting by Reuters
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