The US$5,2bn fine levied against MTN in Nigeria for allegedly failing to disconnect 5,1m Sim cards in time for a regulatory deadline may result in a parliamentary probe in South Africa into whether the telecommunications group is complying with local Sim card registration legislation.
Bloomberg reported on Wednesday that parliament intends summoning MTN officials to explain why the Nigerian Communications Commission imposed the record-setting fine.
The news wire quoted the chair of parliament’s portfolio committee on telecoms & postal services Nkhensani Kubayi as saying that the Nigerian fine is a “worrying issue”.
She said communications regulator Icasa would also be asked by the committee whether MTN is compliant with South Africa’s Rica legislation.
MTN’s share price, which has been knocked sharply lower over the past week on news of the Nigerian fine, continued to recover lost ground on Wednesday morning.
It was trading up by 2,6% at 11.30am at R159,58/share.
On Monday, the counter added 5% after MTN said the Nigerian authorities had agreed to extend its operating spectrum licences until 2021, provided it met certain regulatory conditions. — (c) 2015 NewsCentral Media