Cape Town, South Africa (PANA) – The CEO of South African telecoms giant MTN, Sifiso Dabengwa, announced on Monday his resignation in the wake of the biggest scandal in the company’s history.
This after it was slapped with a US$5.2 billion fine by authorities in Nigeria for failing to disconnect SIM cards that weren’t properly registered in the West African country in August and September.
The company confirmed that Sifiso Dabengwa has resigned with immediate effect and that Phuthuma Nhleko has been appointed as executive chairperson in a temporary capacity.
“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,” Dabengwa said in a statement received by PANA.
MTN was given until 16 November to pay the penalty, which relates to the timing of the disconnection of 5.1 million subscribers.
Nhleko is expected to negotiate with the Nigerian regulator about the fine which saw MTN’s shares on the Johannesburg Securities Exchange plummet.
The mobile phone operator, which has more than 200 million subscribers across Africa and the Middle East, has told shareholders that it was still discussing the matter with the authorities which issued the massive fine.
