MTN Group Ltd., the largest wireless service provider in Africa by subscriber count, is currently investigating allegations of favoritism involving Chief Executive Officer Ralph Mupita.
The Sunday Times of Johannesburg reported on September 1
that a number of unnamed executives have threatened to resign due to claims
that Mupita has been showing preferential treatment towards a female executive,
according to sources who chose to remain anonymous.
Nine executives from MTN have expressed their support for
Mupita by signing a memorandum, as confirmed by individuals familiar with the
situation who requested anonymity due to the sensitive nature of the issue.
The company has a total of 15 executives, not including
Mupita, as per information available on its website.
The Public Investment Corporation, Africa's largest asset
manager and MTN's primary shareholder, expressed serious concerns regarding
corporate governance failures, stating that such issues could negatively impact
the operations of investee companies and lead to potential value loss for
shareholders.
In a letter to employees earlier this week, Mupita reassured
them that MTN has established governance processes to handle employee-related
issues, including those involving senior leadership.
The letter, which was reviewed by Bloomberg, indicated that
the group board is currently undertaking the necessary steps to comprehend and
address the situation.