MTN appoints new CEO following agreement on Nigeria fine

20 Jun 2016
Financial Nigeria


MTN said the appointment follows the successful resolution of the fine imposed on the company by Nigerian authorities.

Rob Shuter, CEO, Vodafone European Cluster, and newly appointed Group President/CEO of MTN Group. Photo credit: Bloomberg

MTN Group, Africa’s largest mobile operator, said on Monday that it has appointed Rob Shuter as its new Chief Executive Officer/Group President.

Shuter, who is the current CEO of the European cluster of Vodafone Group, will replace Sifiso Dabengwa, who resigned last November in the wake of a $5.2 billion fine imposed on MTN by Nigerian Communications Commission (NCC) for the telecoms company's failure to disconnect unregistered subscribers.

"MTN is confident that Rob will bring experience and new insights to the CEO role having had many years in the telecoms sector both in Africa and Europe," MTN said in a statement today.

Phuthuma Nhleko, who has served as Executive Chairman since Dabengwa’s resignation, will revert to his role as Non-Executive Chairman as soon as Shuter assumes his new position.

Shuter, a South African national, has extensive experience in telecoms and banking, having held senior management roles at Vodacom Group, Standard Bank, and Nedbank. He was appointed CEO of Vodafone Netherlands in April 2012, before his role was expanded in October 2015 to include other European markets excluding the four biggest: Germany, United Kingdom, Italy, and Spain.

Aside from Shutter, MTN also announced the appointments of three new Non-Executive Directors: Paul Hanratty, a former Chief Operation Officer of Old Mutual; Stan Miller, a former CEO of KPN, a Dutch telephone company, and who was part of MTN’s founding management team; and Nkunku Sowazi, an Asset Manager at Kagiso Tiso Holdings.

The South African telecoms company also named Godfrey Motsa, a former CEO of Vodacom DRC Congo and Vodacom Lesotho, as Vice President of its South and East Africa division. An unnamed person was also appointed as Vice President of Mergers, Acquisitions, and Strategy effective, June 30th.

MTN said its executive appointments follow the successful resolution of the fine imposed on the company by Nigerian authorities. MTN reached a deal to reduce the fine $5.2 billion fine to to $1.67 billion, which will be paid over three years.

"MTN has weathered a rather difficult storm and will continue to review its governance and management operating structure to ensure that it operates at an optimum level and continues to replenish management talent to ensure a sustained growth of the business," Nhleko said.

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