Confusion over Slash in MTN's Fine as Telco Sacks Ikpoki, Nigerian CEO

Confusion reigned yesterday over the status of the huge fine slammed on MTN Nigeria in October for failing to disconnect 5.1 million unregistered subscribers, with the teleco claiming that the Nigerian Communications Commission (NCC) has cut the fine to $3.4 billion from $5.2 billion, payable by the end of this month.

But an event in Abuja yesterday, Barr Adebayo Shittu, minister of communication, insisted that MTN Nigeria must pay the $5.2 billion fine.

Also, Professor Umar Danbatta, NCC’s executive vice chairman, at the event stated that the federal government’s decision on the fine has not changed.
 
 Prof. Danbatta stated that though the payment deadline had long expired, the fine issue is still being given the deserved attention by the NCC.

Elsewhere, the crisis at MTN has claimed its first victim with the sacking of Michael Ikpoki, who has been replaced by Ferdi Moolman as head of the Nigerian operations.

The announcement of Mooolman is part of the communications pushed out by MTN when it claimed that “MTN has received a formal letter dated December 2, 2015 from the NCC informing the company that, after considering the company’s request, it has taken the decision to reduce the fine”

MTN’s shares on South Africa Stock Exchange have lost 23 percent of their value since the fine was made public on Oct. 26.

Chairman Phuthuma Nhleko took an executive position in November and led negotiations with the NCC after Chief Executive Officer Sifiso Dabengwa resigned.

Nhleko will “immediately and urgently re-engage with the Nigerian authorities before responding formally,” MTN said in the statement.

 “All factors having a bearing on the situation will be thoroughly and carefully considered before the company arrives at a final decision.”

But in Nigeria, Shittu, minister of Communication, debunked speculation that the federal government was planning to waive the fine slammed on the South African firm.

Since Monday, there have been speculations in some online media platforms that President Muhammadu Buhari may waive the N1.04 trillion fine when he meets his South African counterpart, President Jacob Zuma when they meet for the Forum of China-Africa Co-operation in Johannesburg later this week.

An online report on TVC news quoted the spokesman for the Department of International Relations South Africa, Clayson Monyela, as saying that expected meeting between the two heads of state will decide MTN’s fate regarding the fine, adding that the government was monitoring the development with keen interest.

Also Danbatta, NCC boss said though the deadline has expired, the fine is still receiving attention.

Danbatta said: “The fine is still receiving attention. The deadline has expired, that we are aware. What we did was to write to them to acknowledge the letter that have written to the commission which admitted that they committed a breach in the letter, they have undertaken to good regulatory behaviour and an apology to the Nigerian people as well as well as solicitation of leniency on the quantum of the fine, these things are still receiving attention and we wrote to acknowledged the receipt of the letter in order to ensure that there are no further sanctions of non-compliance on the deadline. So they not have broken any rule.”