Beleaguered cellphone giant MTN’s CEO, Sifiso Dabengwa, has resigned with immediate effect, the company said on Monday.
MTN Nigeria was recently fined $5.2bn by the Nigerian Communications Commission for failing to deactivate 5.1-million unregistered SIM cards on its network.
The company’s share price has been hard hit by the news, with the JSE last Monday temporarily suspending trading in MTN’s shares.
MTN said on Monday that nonexecutive chairman Phuthuma Nhleko had agreed to act as executive chairman for a maximum period of six months while the company identified a successor for Mr Dabengwa.
The company is also being investigated by the JSE as it disclosed the Nigerian matter only when information started going public in Nigeria, even though it was fined in August.
Nigeria is MTN’s biggest market with 62-million customers, followed by South Africa.
MTN said: "The engagement with the Nigerian authorities on the Nigerian Communications Commission fine is continuing and shareholders will be advised as soon as there are any material developments on this matter."
The company also advised investors to "exercise caution when dealing in the company’s securities until a further announcement is made".
by Staff Writer
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