MTN’s Nhleko might stay to resolve hanging issues
Interim MTN chief executive Phuthuma Nhleko might have to stay a bit longer than the six months he was contracted for.
|||Johannesburg - Telecommunications giant MTN yesterday indicated the group’s interim chief executive, Phuthuma Nhleko, might have to stay a bit longer than the six months he was contracted for if the issues he was appointed to resolve remain incomplete by the end of his term next month.
This followed media reports over the weekend that Nhleko was planning to step down from the position next month when his term came to an end.
Read: Nhleko's planned exit bodes well for MTN Nigeria
Nhleko, currently the executive chairman, agreed in November to act as chief executive for a maximum period of six months while the company searched for a successor following the resignation of former chief executive, Sifiso Dabengwa.
Nhleko’s mandate was to find a suitable candidate for the chief executive position and also resolve the $3.9 billion (R56.4bn) fine on cellular operator imposed by Nigerian legislators for not deactivating 5.1 million unregistered customers.
MTN dismissed the reports, saying it would depend on whether Nhleko stayed longer to fulfil his mandate.
MTN spokesman Chris Maruleng said the company’s board had not yet discussed Nhleko’s tenure.
“Effectively, the position put forward by Nhleko is that in his capacity as interim chief executive, his tenure would be determined by resolving two outstanding issues.
“First, it is the appointment of the permanent chief executive and second, it is the resolution of the Nigeria fine,” Maruleng said.
“On both occasions, he has not indicated that he has reached finality on these matters. The board gave him a mandate to resolve, and he is still working to do just that.”
Maruleng added: “We won’t be drawn to a public comment about Nigeria fine and we don’t want to entertain media speculation. We are actively engaged with Nigerian authorities and our shareholders will be notified officially via the JSE-Sens.”
When Nhleko was given the mandate, MTN said he would revert back to his non-executive chairman role once the permanent chief executive had been found.
Nhleko is no stranger to the business as he served as non-executive director and chairman of MTN from July 2001 until June 2002, and as an executive director, group president and chief executive until March 2011. Shares fell 1.29 percent to R140.75.
ANA