More flak for new MTN boss
The Public Investment Corporation has joined the criticism of Rob Shuter's appointment as CEO of MTN, saying it would have preferred a black boss for the network operator. The PIC is MTN's largest shareholder with a 16.63% stake. Its comments come after the Black Management Forum criticised MTN's decision, saying it was a "serious blow to transformation".The group said the appointment contributed to the steady decline in the number of black South Africans at the leadership helm in companies.PIC CEO Daniel Matjila said the organisation shared BMF's sentiments."The PIC would have preferred a black CEO," he said.Shuter takes over from Sifiso Dabengwa, who resigned in November after a $1.7-billion fine in Nigeria exposed corporate governance flaws at MTN.Shuter has been brought in to boost profits at MTN by persuading its 200million clients to use their handsets to store money and pay bills.But the hunt for returns by the current European head of Vodafone will throw MTN into an unfamiliar world of finance with increasing regulatory risks as authorities step up efforts to combat illicit money transfers.It will also pit MTN against African rival Safaricom, 40% owned by Vodafone, which operates mobile money business M-Pesa. ..
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