MTN Group is investigating allegations of favoritism involving its CEO, Ralph Mupita. According to a report by the Sunday Times on September 1, several executives have threatened to resign, accusing Mupita of showing preferential treatment to a female executive. The newspaper cited unnamed sources.
In response to the claims, MTN's board confirmed the telecom company is conducting a thorough "verification process" regarding the allegations. "Once this process is completed, the board will deliberate and communicate with stakeholders as appropriate," the company assured. Mr. Mupita affirmed that the board is overseeing the matter.
Amidst the controversy, nine of MTN's 15 executives have signed a memorandum supporting Mupita, according to emerging reports.
The Public Investment Corporation (PIC), MTN's largest shareholder and Africa’s biggest fund manager, expressed concern over potential governance failures. "Corporate governance failures can seriously impact business operations and result in value destruction for shareholders," said the PIC in response to the situation.
Earlier this week, Mupita reassured MTN staff that the company has strong governance processes in place to manage issues involving senior leadership. He reiterated that the board is following the necessary procedures to address the concerns raised.
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