MTN pays former CEO $1.6m over Nigerian fine

 

At a time it is reeling from concerns on how to pay the $5.2 billion fine slammed on its Nigeria subsidiary by the Nigerian Communications Commission (NCC), the MTN Group has paid its erstwhile Group Chief Executive Officer, Sifiso Dabengwa, R23.7 million ($1.63 million) for “loss of office” as a result of the fine.
Details of Dabengwa’s settlements were revealed in MTN’s 2015 Integrated Business Report, released yesterday in Johannesburg, which stated that the “loss of office comprises notice pay and a restraint of trade.”


Dabengwa resigned from MTN on November 11, 2015 having worked with the company since joining it in October 2001.

According to Bloomberg, the payout took Dabengwa’s total 2015 remuneration to R40.6 million.
The Integrated Business Report, disclosed that the Executive Chairman, Phuthuma Nhleko, who returned to resolve the Nigeria penalty after Dabengwa left, was paid R5 million for 2015 work from November 9.

The fine resulted in MTN’s share price at the time losing almost a fifth of its value. Dabengwa’s resignation was also shortly followed by MTN Nigeria CEO, Michael Ikpoki, as well as the Corporate Services Executive, Akinwale Goodluck, both of who stepped down in December.