MTN has suspended its chief corporate services officer in SA, Robert Madzonga, for authorising R12.3 million in questionable payments to a lawyer he knew, reports Sunday Times.
The newspaper reports the telecoms giant declined to provide details for Madzonga's suspension, saying it does not want to be drawn "into any media speculation about what is essentially an internal matter."
According to the report, Madzonga confirmed that the charges he faces are related to payments he authorised. However, the charges have reportedly not been properly formulated, but there are two broad charges relating to Madzonga's dealings with two law firms, Nozuko Nxusani Inc and Mashiane, Moodley and Monama Inc.
The Nozuko Nxusani matter supposedly dates back to an August 2011 report by PricewaterhouseCoopers (PwC), which found that Madzonga signed off 78 questionable invoices worth close to R12.3 million.
The PwC report allegedly described the invoices as "unrealistic", such as one for 3 December 2010 when Nxusani billed MTN for working a 40-hour work day, and another for September 30, when she billed for working a 37-hour work day. She was also reportedly paid rates of up to R168 358 an hour.
The report also notes that Madzonga signed off payments to Nxusani six times before he received the invoices.
Madzonga's suspension comes less than a month after MTN announced that group chief financial officer and executive financial director, Nazir Patel, had resigned amid controversy which includes an internal investigation.
Patel's resignation was reportedly the end result of him diverting money out of the operator's Iran business, flouting the company's procedures.
MTN this week revealed it boosted its subscriber base by 6.5%, to 201.5 million, during the six months to 30 June.
Share