The board of MTN Group, Africa’s largest mobile network operator, has expressed its unequivocal support for Group CEO Ralph Mupita, following an independent investigation that found no evidence of improper conduct. The investigation, prompted by an anonymous complaint, was conducted by a law firm at the board’s behest, and its findings were presented during a special meeting held on 4 September 2024.
The complaint, detailed in South Africa’s Sunday Times, alleged favouritism towards a female executive by Mupita and raised concerns about his accountability. The allegations reportedly sparked unrest within MTN’s upper echelons, with several unnamed executives purportedly threatening resignation.
MTN’s board, however, has taken a firm stance. “The independent report stated that attempts to engage with the complainant were unsuccessful and found no evidence of improper conduct by those cited in the complaint,” the company said in a statement released on 6 September 2024. “In its deliberations, the board accepted the report finding and is of the view that the matter has been addressed and is now closed. The board further expressed its full support for the Group Chief Executive Officer and the MTN strategy.”
The accusations, though dismissed, have cast a spotlight on corporate governance at MTN, with the company’s largest shareholder, the Public Investment Corporation (PIC), expressing concern over potential governance lapses. “Corporate governance failures are of serious concern to the PIC, as these may adversely affect the business operations of investee companies and cause potential value destruction for shareholders,” the PIC noted in response to queries from Bloomberg.
In response, Mupita assured employees in a letter that MTN has robust governance mechanisms in place to address matters of concern, particularly those involving senior leadership. He further underscored the board’s active engagement with the verification process and its commitment to resolving the issue.
Mupita, at the helm of MTN since 2020, has been instrumental in steering the company through challenging financial terrain, with currency devaluations in Nigeria—MTN’s largest market—contributing to a half-year loss before tax of ZAR 9 billion (USD 508 million). Despite these challenges, he continues to spearhead MTN’s “Ambition 2025” strategy, which places a strong emphasis on financial services, data, and fibre infrastructure to meet growing consumer demand.
As tensions surrounding the internal dispute ease, attention now turns to MTN’s ability to restore investor confidence and maintain its ambitious growth trajectory across Africa’s fast-evolving telecommunications landscape.
