Telecoms firm MTN on Friday dismissed complaints against CEO Ralph Mupita for alleged favouritism after an independent report cleared his name.
It said in a statement it had noted the media reporting in the past few days regarding allegations of complaints against members of the Group’s executive.
“MTN shareholders are advised that the Group board (the Board) held a special meeting on Wednesday 4, September 2024 to deliberate on a report by an independent law firm, assisted by counsel, tasked to verify allegations contained in an anonymous complaint against members of the MTN executive.
“The independent report (the Report) stated that attempts to engage with the complainant were unsuccessful and found that there was no evidence of improper conduct by those cited in the complaint,” it said.
MTN said in its deliberations, the board had accepted the report finding and is of the view that the matter had been addressed and is now closed.
“The Board further expressed its full support for the Group Chief Executive Officer and the MTN strategy,” it said.
The Sunday Times newspaper reported on September 1 that an unspecified number of executives threatened to quit after complaining about Mupita allegedly giving preferential treatment to a woman executive.
Bloomberg reports that ten of MTN’s 15 executives, besides Mupita, responded by signing a memo backing the CEO, according to people with knowledge of the matter, who asked not to be identified because they aren’t authorised to discuss it publicly.
Mupita, whose contract is up for renewal next year, has been leading the South African telecommunications company for four years and was its finance chief previously. He sent a letter to staff earlier this week assuring them that the company has governance processes in place to address employee matters, including those concerning senior leadership, according to a memo seen by Bloomberg.
MTN’s shares have dived 21.19% in the year to date due mainly to Nigerian problems. In afternoon trade on Friday the share was up 1.55% at R92.44.
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