Ramaphosa, MTN Chairman Faces Scrutiny over Nigerian Deal

Cyril Ramaphosa, an executive of South Africa’s ruling party, the African National Congress (ANC) and chairman of the board of the continent’s largest mobile phone operator; MTN Group has come under fresh scrutiny following his recent acquisition of minority stake in the group’s Nigerian interests.

Ramaphosa who last October took responsibility for police shooting to death of 34 mine workers following a protest against inhuman working conditions at the Marikana mines could be investigated by the Ethics Institute of South Africa.

Deon Russouw, chief executive of the SA Ethics Institute said investigations would start if he shows any interest at public position in the country which could then lead to a conflict of interest.

Russouw was quoted in South Africa media as insisted that the founder of National Union of Mineworkers (NUM) would have a conflict of interest should he seek public position owing to his numerous business interests.

“It’s quite clear that if one is about to assume a new position, then of course the conflict of interest would start at that point,” Russouw was quoted as saying in South African press.

Ramaphosa’s controlled Shanduka Group recently bought into MTN Nigeria in a $335 million deal but questions about corporate governance and a potential conflict of interest are being asked in his home country, South Africa.

There are also concerns in South Africa about the manner of the Nigerian deal while he a sitting chairman of the MTN Group and an executive of the ANC. He is expected to be voted in as ANC Deputy President in the party’s congress to be held in Mangaung next December.

He has already being nominated by the KwaZulu-Natal ANC executive and the very powerful women’s league. Being Deputy President of the ANC would pave way for his eventual emergence as South Africa’s president post Jacob Zuma.

Nigerian officials have maintained stoic silence over the deal.

Besides being chairman of the Shanduka Group, Ramaphosa also holds stakes in the Lonmin mine where 34 miners were killed following strikes last October. He would later donate R2 million through the Shanduka Group towards funeral expenses of the killed miners.

The workers rejected the offer calling the donation ‘blood money’ in apparent reference to his stake in the mining firm. He however stated that it was donated as a goodwill gesture.

The concerns stem from Ramaphosa who controls Shanduka Group being chairman of the MTN Group, of which MTN Nigeria is a subsidiary.