By MKPE ABANG
Lessons on friendship and experience:
‘Lay this unto your breast: Old friends, like old swords, still are trusted best.’
- John Webster
‘Make new friends, but keep the old; those are silver, these are gold.’
- Joseph Parry
Like hearkening to these age-old but well tested lessons, the MTN Group taps into the time-tested hands that helped it venture, 16 years ago, into the so-called most complex market in Africa, but which became its most lucrative and profitable unit, Nigeria, luring back into its fold, successfully, Felleng Sekha, and appointing her to head a newly created Regulatory Affairs division.
Felleng, as she is commonly called, played significant roles in MTN’s acquisition of the mobile licence in Nigeria at the auction in 2001; she went on to play even more developmental roles, helping the company to get rooted in the country.
Her appointment has already been applauded by many industry stakeholders as a positive sign for MTN to gain back its once bright outlook in Nigeria given that Ms Sekha is well respected in the country as a firm voice that advises proactively, firmly and rightly on regulatory matters.
MTN is still reeling from the unprecedented fine, originally set at $5.2 billion, slammed on it by the Nigerian Communications Commission (NCC). It is believed MTN is taking the step of creating the new unit of Regulatory Affairs and appointing Ms Sekha to head it, as fallout to the Nigeria fine, which will only be fully settled in 2019 based on agreed settlement terms and datelines.
Felleng Sekha is a well-respected personality in the African ICT community; and, given her very positive antecedents in Nigeria, a country in which she lived and regarded as home while working for MTN Nigeria from 2001 to 2007 when she finally departed, her return to the MTN Group is seen as a good omen which should lead to the full mending of fences, thus place the company focused on achieving its set targets.
When IT & Telecom Digest contacted her on the new appointment and new role, Ms Felleng Sekha, confirmed the story with a short but straightforward response:
“I am back to the fold, my brother,” she replied.
The Nigerian telecom regulator had invoked section 20(1) of the Telephone Subscribers regulation (TSR) law on MTN, for not meeting the deadline set up for mobile network operators (MNOs) for disconnecting the Subscriber Identification Modules (SIM) with improper or incomplete registration.
NCC’s compliance audit carried on MTN network revealed unregistered 5.2 million customers’ lines un-deactivated. This led to the NCC fining MTN with the sum of $1,000 for each unregistered SIM, which amounted to $5.2 billion
Needless to say, the fine, the largest anywhere in telecom history, elicited uproar across the world. Back in Africa, first, it was the Group CEO of MTN, Sifiso Dabengwa, who became the leading casualty. He was soon to be followed by the resignation of Michael Ikpoki, CEO of the MTN Nigeria, himself a Nigerian; Ikpoki resigned alongside Mr. Akinwale Goodluck, who was the MTN Nigeria’s Corporate Services Executive.
After negotiations and appeals, which included the intervention of South African President, Jacob Zuma during a visit to President Muhammadu Buhari, NCC in consideration, reduced the fine to $3.2 billion.
On June 10, 2016, MTN Nigeria announced through its newly appointed chief executive officer, Ferdi Moolman, on the fine thus:
“Further to the various announcements to shareholders regarding this matter, MTN is pleased to inform shareholders that the matter has been resolved with the Federal Government of Nigeria (FGN) on the following terms:
“MTN Nigeria has agreed to pay a total cash amount of Naira 330 billion over three years (the equivalent of US$ 1.671 billion at the official exchange rate and US$902 million at the Lagos Parallel Market Rate) to the FGN in full and final settlement of the matter payable as set out hereunder.
“The Naira 50 billion paid in good faith and without prejudice by MTN Nigeria on 24 February 2016 forms part of the monetary component of the settlement leaving a balance of Naira 280 billion outstanding which will be discharged as follows:
“Naira 30 billion on 8 July 2016
Naira 30 billion on 31 March 2017
Naira 55 billion on 31 March 2018
Naira 55 billion on 31 December 2018
Naira 55 billion on 31 March 2019
Naira 55 billion on 31 May 2019
“In addition to the monetary settlement set out above:-
“MTN Nigeria subscribes to the voluntary observance of the Code of Corporate Governance for the Telecommunications Industry and will ensure compulsory compliance when the said Code is made mandatory for the Telecommunications Industry.
“MTN Nigeria undertakes to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of the settlement agreement;
“MTN Nigeria shall always ensure full compliance with its license terms and conditions as issued by Nigerian Communication Commission (“NCC”).”
Felleng Sekha
Ms Felleng Sekha was GM, International Business Development/Executive Director, Corporate Services at MTN and formed part of the leading team that ventured into Nigeria in 2000 when the country began exploratory talks on auctioning mobile licences.
In January 2001, in Abuja, she played the crucial role for MTN leading to the company emerging a winner at the Digital Mobile Licence Auction with the licence which it won issued in February after the company paid $285 million. MTN Nigeria started operations fully in August of that year, and shot ahead to become Nigeria’s leading mobile phone operator; it has remained the leading network ever since, holding nearly 50 per cent of Nigeria’s 150 million mobile subscriptions.
A respected and renowned expert in ICT policy, law and regulation, Felleng consults on and has a proven track record of success with the management of public policy issues, strategic public affairs, political, regulatory, legal, operational and commercial risks.
Between 1999 and 2007, Felleng enjoyed a succession of executive roles within the MTN Group, such as General Manager of International Business Development, and Executive Director Corporate Services.
Until recently, she was a director of Business Connexion (BCX) a South African IT systems integrator and the Deputy Chairperson of the SABC.
In addition, she was the Chairperson of the Independent Broadcasting Authority (IBA), the National Telecommunications Forum (NTF), and the Deputy Chairperson of the South African Broadcasting Corporation (SABC).
She was also the first Vice President of RIARC (the Network of African ICT Regulators) and Chairperson of GSM Forum Nigeria and GSM Forum West Africa.
Felleng Sekha holds a BA in Law from the University of Lesotho (NUL), a LLB from the University of Cape Town, and a post graduate diploma in Media Communications and Information Technology Law from the University of Melbourne.
It would seem plausible to say that Felleng already has her job cut out for her in Nigeria. Two weeks ago, MTN was accused of illegal transfer of around $13 billion out of Nigeria over a period of 10 years without due process by Senator Dino Melaye.
It is a matter that is still very much on the front burner; and, for Felleng, that could be the first hot water she has to see cool off enough drinking – by settling the matter.
The coming weeks might be a decider for MTN and how it handles another festering crisis. And, all eyes will be on Felleng.