The former Chief Executive Officer of MTN Sifiso Dabengwa has pocketed a mind-blowing amount of R23.7 million after his resignation following a record fine imposed on the company by authorities in Nigerian. The former MTN CEO quit the company amid chaos and allegations.
It was disclosed by MTN in its annual report that former MTN CEO was awarded an overall payout by the company. This includes all benefits of R40.6 million.
Dabengwa reportedly quit the company in November after Nigerian authorities imposed a fine of $5.2 million on MTN’s Nigerian unit in October.
There was a mandate by Nigerian authorities last year whereby a deadline was mapped out for mobile operators to cut off all unregistered SIM cards, which MTN failed to meet up with. The fact that the unregistered lines were being used by criminal gangs and the terrorist group Boko Haram gave rise to the ultimatum to register sims as this will make it easier for security officials to investigate crimes.
The Nigerian House of Assembly directed its Committee on Telecommunications to make further inquiry into the extent to which the non-compliance of the MTN group with the law, allegedly led to the death of over 10,000 innocent Nigerians killed by the terrorist group Boko Haram.
The House also wanted to know if MTN can be subjected to criminal proceedings under the law.
MTN is still trying to reduce the fine imposed on its Nigerian unit but has since managed to negotiate the fine down to $3.9 million.
While efforts are being made to resolve the fine, Phuthuma Nhleko has been named executive chairman of Africa’s biggest mobile phone group for a period of six months.
As the news of the fine spread in October, MTN’s share price had been down almost 20 percent.