Mobile giant MTN SA would this morning not comment on rumours that its CEO, Ahmad Farroukh, has tendered his resignation.
Weekend media reports speculated that Farroukh announced his resignation plans at a meeting last month, but it is understood his resignation has not been officially accepted.
It is also understood MTN is not willing to comment publically on the matter before it has had a chance to address its shareholders, as the issue could potentially have a material impact on the company's share price.
However, an MTN source has confirmed to ITWeb that Farroukh submitted his resignation, but says it has yet to be accepted. "That is what is being discussed now."
The source says Farroukh's decision to step down was mainly prompted by the protracted Communication Workers Union (CWU) strike, which has now entered its eighth week and has been occasionally marred by incidents of violence.
The source says Farroukh's family, who live abroad, were not happy for him to remain at the helm of SA's second biggest mobile provider, as they fear for his safety due to the protracted strike action. It is also understood Farroukh has been worrying about the effects of the industrial action on the company and is disappointed with its inability to bring the strike to an end.
While the strike - over salary hikes and bonus payouts - has seen CWU members protest outside the cellular giant's various facilities around the country, its effect on MTN operations has been minimal.
The operator's core network had remained operational, but MTN has admitted some problems with service delivery as a result of the strike, with MTN SA human resources chief Themba Nyathi previously conceding some service and product channels had been affected.
Before taking the reins at MTN SA in August last year, Farroukh served as CEO of the MTN Group, which has 228 million subscribers in 22 countries across the Middle East and Africa, making MTN the largest mobile operator in Africa.
Farroukh previously also served as VP of the West and Central Africa region and as CEO of MTN Nigeria.
The source says Farroukh's exit would be a significant blow for MTN, which has been placed on a solid footing for the future during the CEO's short stint at the top. "It was a very solid pair of hands. It will be very sad to see him go."
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