MTN CEO Sifiso Dabengwa resigns
Updated | By ANA
MTN Chief Executive Sifiso Dabengwa has resigned in the wake of the multi-billion dollar fine imposed on the company by Nigeria.
Dabengwa’s resignation announced by MTN on Monday sees the return of former boss Phuthuma Nhleko who has been appointed as Executive Chairman in a temporary capacity.
In a statement on Monday MTN said it “wishes to inform the market that MTN’s Chief Executive Officer, Mr Sifiso Dabengwa has resigned”.
MTN, which faces a $5.2bn fine imposed by Nigerian authorities, quoted Dabengwa as saying: “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.”
The fine was imposed after MTN failed to deactivate millions of SIM cards that did not conform to Nigerian laws.
Non-Executive Chairman Nhleko has agreed to act as executive chairman for a maximum period of 6 months while the Company identifies a successor for Dabengwa, MTN said.
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.
Commenting on his appointment, Nhleko 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”.
MTN said Alan van Biljon will continue to serve as the Lead Independent Director on the MTN board of directors (MTN board) while Nhleko takes over executive responsibility.
“Together with the MTN board, my second priority will be to find an appropriate chief executive officer to take MTN forward. I will then revert to my non-executive chairman role,” said Nhleko.
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