MTN Logo (Photo Credit: Voice of the Cape)
MTN Logo (Photo Credit: Voice of the Cape)

By Staff Writer

South African-based mobile phone operator MTN has agreed to pay R113 million ($8.5 million) administrative fine to settle its dispute with the Rwandan government, according to Rwanda Eye.

On May 17, Rwanda Utility Regulatory Authority (RURA)  imposed a massive fine worth $8.5 million as a result of non-compliance with the directives issued by the regulator prohibiting the inclusion of MTN Rwanda in the MTN South and East Africa (SEA) IT hub based in Uganda.

“MTN Rwanda will be the one to pay the RURA fine not MTN Group.  The fine will affect cash flow not performance of company” said MTN Rwanda CEO, Bart Hofker during a press briefing today, according to Rwanda Eye.

This is miniscule compared to a fine imposed by the Nigerian authorities on MTN in 2015.

In 2015, MTN was hit with a $5.2 billion fine by the Nigerian communications commission, the country’s telecoms watchdog.

The fine was related to the timing of the disconnection of 5.1 million MTN Nigeria subscribers who were disconnected in August and September 2015 and is based on a fine of N200, 000 for each unregistered subscriber.

This resulted in MTN Group CEO Sifiso Dabengwa resigning and resulted in a management reshuffle for the mobile phone operator.

The company is now led by Rob Shutter, who is in a process of reviving the group.

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