MTN Group said it’s probing issues of alleged favouritism by CEO Ralph Mupita.
The Sunday Times newspaper reported on 1 September that an unspecified number of executives threatened to quit after complaining about Mupita allegedly giving preferential treatment to a female executive. The newspaper cited people it didn’t identify.
MTN’s board is “engaged in a verification process in relation to the allegations raised and once this process has been completed” it will deliberate and communicate as appropriate with stakeholders, the company said in response to questions. Mupita said the board was managing the process.
Nine of MTN’s executives have signed a memorandum backing Mupita, according to people with knowledge of the matter who asked not to be identified because they’re not authorised to discuss the matter. The company has 15 executives, excluding Mupita, according to the company’s website.
“Corporate governance failures are of serious concern” to the Public Investment Corp, Africa’s largest fund manager and MTN’s top shareholder, said in response to questions. “These may adversely affect business operations of investee companies and cause potential value destruction for shareholders.”
Mupita earlier this week sent a letter to staff assuring them that MTN has governance processes in place to address employee matters, including those concerning senior leadership.
“The group board is going through the necessary processes to understand the matters and will address them,” according to the letter seen by Bloomberg. — (c) 2024 Bloomberg LP