MTN has announced the resignation of its Chief Executive Officer Mr Sifiso Dabengwa following the controversial $5billion fine imposed on it by the Nigerian Communication Commission. The company made this announcement in a press release in its website and referred to the prevailing circumstances in Nigeria as a reason. The former CEO explained his reason for resigning;
“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,”
Replacing him in an acting capacity will be Phuthuma Nhleko, who is the current Non-executive Chairman. He has now been named Executive Chairman for the next 6 months pending when they find a suitable successor. Nhleko in his first official statement about Nigeria since being named CEO said;
“I will assume responsibility as Executive Chairman for the next 6 months as 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,”
According to MTN, Mr Nhleko is no stranger to the business as he served as Non-executive Director and Chairman of MTN from July 2001 until June 2002 and thereafter as an executive director, Group President and CEO until March 2011. He has subsequently chaired the Group in a Non-executive capacity for the past two and a half years (29 May 2013).