MTN’s Nhleko to stay a while longer

MTN Executive Chairman Phuthuma Nhleko will continue to helm the company beyond the expiration date of his contract.

Johannesburg - MTN Executive Chairman Phuthuma Nhleko is continuing in his role as leader of the wireless company past the May 9 expiration of his initial contract, as he’s still working on the dual tasks of recruiting a new chief executive officer and resolving a record fine in Nigeria.

“The board gave Nhleko a mandate and he will continue as executive chairman until this mandate has been fulfilled,” MTN spokesman Chris Maroleng said by phone on Wednesday.

Read: MTN faces more woes in Nigeria

Nhleko, who was previously head of the Johannesburg-based company until 2011, returned to the executive role in November following the resignation of CEO Sifiso Dabengwa. He agreed to a six-month contract to address the company’s $5.2 billion fine in Nigeria, later reduced to $3.9 billion, for missing a deadline to disconnect customers deemed by the government to be unregistered in the country amid a crackdown on security.

Nhleko was paid R5 million ($331 000) for work from November 9 until the end of 2015, according to MTN’s annual report, indicating a total payout of R17.5 million for six month’s work, not including any bonuses.

MTN shares declined 0.4 percent to R133.32 as of 2.05pm in Johannesburg, valuing the company at R246 billion. The stock has weakened 30 percent since the Nigeria fine was made public in October.

BLOOMBERG