News
Talks between telco and government reportedly stall, pending outcome of investigation.
MTN is playing its cards close to its chest when it comes to the latest developments in its long-running Nigeria fine saga.
The South African operator group reacted with caution to press reports claiming that talks between it and the Nigerian government over the US$3.9 billion fine – levied in October last year at $5.2 billion and later reduced in size – have been mothballed pending the outcome of an investigation.
A spokesperson for MTN urged shareholders not to base any investment decisions on media reports, Bloomberg reported.
The comment came after the newswire itself claimed that talks were on hold due to an ongoing investigation by Nigeria’s House of Representatives that is looking at the size of the fine and the way in which it was imposed. It cited a spokesperson for the Nigerian Ministry of Communications.
The MTN spokesperson stated that any update to the situation will be communicated to investors via the Johannesburg stock exchange’s news service.
MTN’s most recent stock exchange announcement on the subject of the fine was published in late April. At that time it noted that it was engaging with authorities with a view to finding a resolution and again advised stockholders to exercise caution in their dealings.
The fine was imposed due to MTN’s failure to disconnect unregistered SIM cards in accordance with the Nigerian Communications Commission’s (NCC’s) timeline.
The situation cost then-CEO Sifiso Dabengwa his job. MTN appointed non-executive chairman and former CEO Phuthuma Nhleko as executive chairman on an interim basis in November to deal with the fine. Nhlekowas due to hold the post for six months, but is still in situ, MTN having thus far failed to broker a deal with the relevant authorities.
