The boss of Africa's biggest mobile company, MTN, has resigned after the firm received a $5.2bn (£3.4bn) fine from Nigeria.
Chief executive Sifiso Dabengwa tendered his resignation with immediate effect, saying it was "in the interest of the company and its shareholders".
The fine, which amounts to double MTN's profit last year, was for failing to cut off unregistered mobile users.The firm was given until 16 November, just two weeks, to pay the penalty.
The company is in talks to reduce the fine. "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," said Mr Dabengwa in a
statement. He had been in the post since 2011.
Non-executive
chairman Phuthuma Nhleko has been appointed executive chairman for a
maximum of six months while the company looks for a successor. It
is thought that the Nigerian government imposed the fine after the
kidnapping of a former finance minister, Chief Olu Falae. The kidnappers
used an unregistered Sim card from MTN to demand a ransom. Nigeria is MTN's biggest market, with 28.5 million subscribers, followed by Iran and South Africa.
The resignation of Sifiso Dabengwa has not come as a surprise to analysts and market watchers.
His
job was on the line ever since the authorities in Nigeria slapped MTN
with a $5.2bn fine for failing to cut off mobile phone users who were
using unregistered Sim cards.
Mr Dabengwa had been in the top
post at MTN for four years, but had served as the company's chief
operating office and as head of its Nigerian operations before that.
The
ratings agencies Moody's and Fitch lowered MTN's credit rating last
month because of the Nigeria fine, the size of which the company is
still thought to be trying to negotiate lower.
Source: BBC
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