MTN shares slide after CFO quits

24 July 2013 | Natasha Culzac


MTN has suffered a dramatic slide in its share price following the sudden resignation of the company’s CFO Nazir Patel.

Patel’s sudden and unexpected departure follows an internal probe into allegations made against him. A statement from the company said that Patel was leaving so as to not “prejudice the company” during its investigations.

Despite shares tumbling by 2.6% on the Johannesburg Stock Exchange at response to the news, Reuters reports that MTN believes no long-term harm will come to the firm. The company’s chief executive Sifiso Dabengwa said: “The allegations against Mr Patel are of a governance nature, and have no impact on MTN's financial results, past or future.”

MTN did not elaborate on the nature of the enquiry, and have appointed Brett Goschen, the chief executive of MTN Nigeria since 2011, to fill his place.

It was announced earlier this month that MTN is to partner with CSG to tackle trafficmanagement.