* Corrected 53 percent to 35 percent in our earlier report
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian Communications Commission (NCC) has cut by 35 percent (N1.04 Trillion) the fine initially imposed on South African mobile operator MTN to $3.4 billion from $5.2 billion.
The company said deadline for payment has been scheduled for December 31, 2015.
“MTN has received a formal letter dated 2 December 2015 from the NCC informing the company that, after considering the company’s request, it has taken the decision to reduce the fine on the MTN Nigerian business from the original N1,040,000,000,000 (One Trillion, Forty Billion Naira) to N674 Billion Naira which has to be paid by 31 December 2015. The fine relates to the late disconnecting of 5.1 million MTN Nigeria subscribers in August and September 2015, MTN said in statement.
According to MTN,it’s carefully considering the NCC’s reply, however the executive chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian Authorities before responding formally, as it is essential for the company to follow due process to ensure the best outcome for it.
The South African telecoms giant said its stakeholders and the Nigerian Authorities and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the company arrives at a final decision.
“Shareholders are therefore advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made,” the statement added.
In a separate development, MTN announced that there was a shake-up of its seniour management structure in an effort to strengthen oversight, governance and regulatory compliance across its operations in 22 countries in Africa and the Middle East.
In this regard, Michael Ikpoki, MTN’s Nigeria CEO and the head of regulatory and corporate affairs Akinwale Goodluck have resigned with immediate effect, MTN said.
In Ikpoki’s replacement, the company named Jyoti Desai, a 14-year veteran of the Johannesburg-based firm, as chief operating officer (COO) with effect from December 1.
MTN says that Desai’s replacement as group chief technology and information officer will be announced soon.
