MTN shuffles group structure

MTN's executive chairman Phuthuma Nhleko. Picture: Simphiwe Mbokazi

MTN's executive chairman Phuthuma Nhleko. Picture: Simphiwe Mbokazi

Published Dec 3, 2015

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Johannesburg – MTN - Africa’s largest operator by subscriber numbers - has reviewed its operating structure and has restructured into three regions.

In a statement issued on Thursday, the cellular operator says this review aims to strengthen “operational oversight, leadership, governance and regulatory compliance across its 22 country operations in Africa and the Middle East”.

MTN has recently been hard hit as it has a $3.4 billion fine to pay Nigerian authorities by month end after it did not cut off just more than 5 million subscribers whose details it did not have. The fine, which was reduced from the initial record $5.2 billion, resulted in MTN’s stock losing almost a quarter of its value and saw the resignation of CEO Sifiso Dabengwa and non executive chairman Phuthuma Nhleko taking an executive position and negotiating with authorities.

The news of the fine, which became public knowledge before the market was told, raised concerns over MTN’s governance and resulted in a JSE probe into possible insider trading.

MTN says it is now bringing back its previous reporting structure and now has three regions: West and Central Africa (WECA), South and East Africa (SEA), and Middle East and North Africa (MENA).

Nhleko says the “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."

MTN has also made a number of senior appointments to support this structure, it says.

From this month, Jyoti Desai will become COO, reporting to Nhleko. Desai has 14 years’ experience at MTN. She has previously held the positions of CIO at MTN Nigeria, was COO of MTN Irancell and was recently seconded to support the Nigerian country operations. Her replacement as technology and information officer will be announced soon.

Two regional VPs have also been appointed, also reporting to the Nhleko. The VP for WECA is Karl Toriola, with Ismail Jaroudi the VP for MENA. The VP for SEA will be announced soon.

Based in Nigeria, Toriola has been at MTN for 10 years, having held senior operational roles at MTN Group and MTN Iran. He was formerly also the CTO at MTN Nigeria and CEO at MTN Cameroon.

Jaroudi has been CEO of MTN Syria since 2006. Prior to this he held senior operational roles for Investcom’s subsidiaries across the Middle East and North Africa.

Also reporting to the Nhleko is the new group executive for mergers and acquisitions, Matthew Odgers. The former head of TMT for Africa & the Middle East and head of investment banking for Middle East and North Africa at UBS, Mr Odgers led UBS’s overall relationship with MTN.

MTN Nigeria’s CEO Michael Ikpoki and the head of regulatory and corporate affairs Akinwale Goodluck have tendered their resignations with immediate effect.

MTN says they are replaced by Ferdi Moolman as MTN Nigeria CEO and Amina Oyagbola as its head of regulatory and corporate Affairs. Mr Moolman was previously COO at MTN Irancell and most recently CFO at MTN Nigeria. A Nigerian national, Oyagbola also retains the position of MTN Nigeria’s head of human resources. She formerly headed regulatory affairs at the Nigerian operating company.

MTN adds its search for a group CEO is underway and remains a priority.

MTN, which launched in 1994, is active in 22 countries in Africa and the Middle East with 233 million subscribers. Nigeria is its largest operation.

IOL

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