MTN Group has announced that it is setting aside a sum of 9.3 billion rand ($600 million) to cover payments for the fine imposed on it by the NCC. NCC was fined $3.9 billion by the NCC for Sim card related breaches and have made a part payment of $251 million.
The company has been negotiating with the Government over a possible reduction of the fine and earlier in the year took the matter to court. It has now withdrawn the case and appointed former US Attorney, Eric Holder to help with negotiations.
The CEO confirmed the money set aside when he spoke to reporters;
“Like most provisions, it’s based on prevailing circumstances. It is not a number of finality,” Phuthuma Nhleko told reporters.
MTN also reported a 37% drop in profits to R23.5 b ( R1.5 billion)