After
long negotiations and plea, the NCC has finally reduced the staggering
$5.2bn imposed on MTN Nigeria for violation of sim card deactivation
directive.
When News Breaks Out, We Break In. (The 2014 Bloggies Finalist)
The Nigerian Communications Commission has reduced the $5.2bn
slamed fine on giant telecommunications company MTN Nigeria to $3.4bn
for flouting the regulatory body's directive on SIM deactivation.
The Nigerian Communications Commission handed Africa's biggest
mobile phone company the penalty in October after MTN failed to cut off
users with unregistered SIM cards from its network.
Nigeria, MTN's biggest market, has been pushing telecoms firms to verify the identity of subscribers amid worries unregistered SIM cards were being used for criminal activity in a country facing the insurgency of Islamic militant group Boko Haram.
The fine, originally $5.2 billion, prompted MTN to hold talks with the NCC over the past five weeks seeking a reduction.
"After further engagements with the Nigerian authorities, the NCC has reduced the imposed fine," MTN said in statement. “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 to N674 billion which has to be paid by 31 December 2015,” the NCC said.
The company, which makes about 37 per cent of its sales from Nigeria, said it was considering the NCC's decision. "Executive Chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian authorities before responding formally," it said.
Nhleko, who took charge for up to six months after the abrupt resignation last month of Sifiso Dabengwa, led the company for nine years before stepping down in 2011.
Meanwhile, the MTN announced a shake-up of its senior management structure in an effort to strengthen oversight, governance and regulatory compliance across its operations in 22 countries in Africa and the Middle East. “MTN Nigeria’s CEO, Michael Ikpoki and the head of Regulatory and Corporate Affairs, Akinwale Goodluck, have tendered their resignations with immediate effect,” the company said in a statement on Thursday morning.
“They are replaced by Ferdi Moolman as MTN Nigeria CEO and Amina Oyagbola as its head of Regulatory and Corporate Affairs. Mr Moolman was previously COO at MTN Irancell and most recently CFO at MTN Nigeria. A Nigerian national, Ms Oyagbola also retains the position of MTN Nigeria’s Head of Human Resources. She formerly headed regulatory affairs at the Nigerian operating company.”
Nigeria, MTN's biggest market, has been pushing telecoms firms to verify the identity of subscribers amid worries unregistered SIM cards were being used for criminal activity in a country facing the insurgency of Islamic militant group Boko Haram.
The fine, originally $5.2 billion, prompted MTN to hold talks with the NCC over the past five weeks seeking a reduction.
"After further engagements with the Nigerian authorities, the NCC has reduced the imposed fine," MTN said in statement. “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 to N674 billion which has to be paid by 31 December 2015,” the NCC said.
The company, which makes about 37 per cent of its sales from Nigeria, said it was considering the NCC's decision. "Executive Chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian authorities before responding formally," it said.
Nhleko, who took charge for up to six months after the abrupt resignation last month of Sifiso Dabengwa, led the company for nine years before stepping down in 2011.
Meanwhile, the MTN announced a shake-up of its senior management structure in an effort to strengthen oversight, governance and regulatory compliance across its operations in 22 countries in Africa and the Middle East. “MTN Nigeria’s CEO, Michael Ikpoki and the head of Regulatory and Corporate Affairs, Akinwale Goodluck, have tendered their resignations with immediate effect,” the company said in a statement on Thursday morning.
“They are replaced by Ferdi Moolman as MTN Nigeria CEO and Amina Oyagbola as its head of Regulatory and Corporate Affairs. Mr Moolman was previously COO at MTN Irancell and most recently CFO at MTN Nigeria. A Nigerian national, Ms Oyagbola also retains the position of MTN Nigeria’s Head of Human Resources. She formerly headed regulatory affairs at the Nigerian operating company.”
Read below the mail MTN management sent to its staff
“The Nigerian Communications Commission (NCC) reduces imposed fine
to US$3.4 billion equivalent and further cautionary announcement.Shareholders are advised that, after further engagements with the Nigerian Authorities, the NCC has reduced the imposed fine. 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 Nigeria business
from the original N1,040,000,000,000 (One Trillion, Forty Billion Naira)
to N674 Billion 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. The Company is
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 the
Company, 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. As we committed to you previously, and in the spirit of our Vital
Behaviour of Complete Candour, we will keep you updated as the matter
unfolds. As we enter the busy year-end period in our business, I
encourage you to continue focusing on our customers and strive to keep
our promise to provide the bold, new Digital World to them.
Regards,Phuthuma
When News Breaks Out, We Break In. (The 2014 Bloggies Finalist)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.