Johannesburg, 24 Mar 2016
The MTN Group has announced it has hired a former top US Attorney General, Eric Holder, to help challenge a $3.9 billion fine imposed by Nigeria for failing to disconnect unregistered users. The Nigerian Communications Commission issued a hefty fine of $5.2 billion in October last year to telecommunications giant MTN, Africa's largest mobile phone company. Prompting weeks of lobbying, which led to a 25% reduction, to $3.9 billion on the fine, negotiations are still under way.
The fine was a result of MTN's failure to disconnect over 5.1 million unregistered subscribers in the region. In the immediate aftermath of the issuing of the original fine, MTN's share price dropped sharply, as concerns about the company's ability to pay the fine had investors extremely worried.
Mohamed Cassoojee, Country Manager and Vice-President of Software AG South Africa, says, going forward, the country's businesses can expect to see even stricter regulation of governance, risk and compliance (GRC) within South Africa and the rest of the continent. "Failing to address and properly manage GRC should not be under-estimated, and can carry devastating results for even the most powerful of organisations."
Cassoojee says the constant evolution of legislation and the increasingly stringent implementation of auditing procedures across a broad range of industries means it has never been more critical for organisations, both large and small, to ensure their GRC is effectively managed, with watertight attention to detail.
"While many organisations of varying sizes view the implementation of improved GRC processes and procedures as a monumental endeavour, it is, in fact, a far simpler and more cost-effective exercise than is often realised, thanks to the technology and solutions available to automate and digitise many of these processes."
Cassoojee goes on to say that by making use of powerful ICT solutions, which integrate and plug into existing GRC systems, businesses can continue their operations with confidence, and even avoid disaster. "Businesses simply cannot afford to procrastinate in ensuring effective organisational GRC. That being said, it is important for businesses to explore and understand the needs of their unique organisations, as well as the various customisable ICT solutions available to address these," he concludes.
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