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MTN gets extension on fine payment

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 16 Nov 2015
MTN's interim leader Phuthuma Nhleko is in Nigeria to negotiate with authorities over a $5.2 billion fine imposed on the telco.
MTN's interim leader Phuthuma Nhleko is in Nigeria to negotiate with authorities over a $5.2 billion fine imposed on the telco.

MTN will not have to pay a $5.2 billion (R74 billion) fine in Nigeria today as expected.

The deadline for the fine imposed by the Nigerian Communications Commission (NCC) was set for today but "the Nigerian authorities have, without prejudice, agreed the imposed fine will not be payable until the negotiations have been concluded", according to a statement from MTN this morning.

MTN is continuing its negotiations with the Nigerian authorities over the fine, which was handed down on 26 October because the telco failed to disconnect over five million customers with unregistered SIM cards in Africa's biggest economy.

MTN's executive chairman, Phuthuma Nhleko, is in Nigeria and "has personally met with the Nigerian authorities to continue the ongoing discussions with them regarding the fine of N200 000 for each unregistered subscriber".

"These discussions include matters of non-compliance and the remedial measures that may have to be adopted to address this," according to MTN.

Group CEO Sifiso Dabengwa resigned last week and former CEO and non-executive chairman Nhleko took the reins as executive chairman while the company looks for Dabengwa's successor.

"MTN is committed to resolving the matter together with the NCC as soon as possible and will continue to update stakeholders of any material developments regarding the afore-mentioned fine via SENS," says the company.

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