As MTN Group starts the process of repatriating billions of rands from its 49%-owned MTN Irancell, the JSE-listed firm strongly denies the accusation that it is illegally shifting funds from embattled MTN Nigeria.

After years of working to remit some of the R15.8-billion in accumulated dividends and loans frozen in Iran by international sanctions, the telecommunications group expects to complete this “complex” process within the next six months after the lifting of sanctions in its largest market in the Middle East.

Earlier this year, MTN had made some headway in the long-embattled Iranian market, after sanctions had been lifted after more than a decade.

“We are pleased to report that we have commenced the repatriation of cash from MTN to the group,” MTN Group executive chairperson Phuthuma Nhleko said on Monday.

Meanwhile, amid allegations of illegal movements of funds out of Nigeria, all remittance of dividends from the West African operations has been suspended pending an investigation by the Senate of the Federal Republic of Nigeria.

MTN Nigeria has been accused on the floor of the Nigerian Senate of illegally repatriating $13.97-billion through its bankers and allegedly violating the Foreign Exchange Act.

“The allegations made against MTN Nigeria are completely unfounded and without any merit,” MTN Nigeria CEO Ferdi Moolman said at the time.

MTN Nigeria, four commercial banks, certain MTN Nigeria directors and shareholders, the Central Bank of Nigeria (CBN) and others appeared before the Senate last week, following which the CBN instructed the banks to suspend any remittance of dividends until further notice, Nhleko said in the group’s third-quarter update.

"MTN Nigeria and its bankers are cooperating with the investigation with a view to resolving the matter as expeditiously as possible. MTN Nigeria will strongly defend any action that would be prejudicial to its interest,” he assured shareholders.

The company pointed out that MTN Nigeria had not declared a dividend since April 2015, and had no intention of undertaking dividend payments over the next six months, as it works to pay the N330-billion penalty it incurred for the late disconnection of improperly registered Sim cards.

TRANSFORMATION PROJECT
Meanwhile, MTN kicked off its “transformational project”, prioritising South Africa and Nigeria, with the “first results” of the new clearly defined targets for the enhanced operations expected in the first half of 2017.

“A dedicated transformation office was established to drive this transformation to maximise revenue growth, enable a distinct customer experience and ensure operational efficiencies, including concerted initiatives to drive optimal return on investment,” Nhleko noted.

Stringent targets have been set for the next 12, 18 and 24 months.

Further, the start date for MTN’s incoming CEO and group president Rob Shuter has been brought forward to March 13, 2017, while the appointment of a new CFO and other vacant senior management positions and several senior management changes will be completed by year-end.

QUARTERLY PERFORMANCE
During the three months to September 30, both MTN’s South African and Nigerian operations posted improvements, with the group’s subscriber base expanding 0.9% quarter-on-quarter to 234.7-million.

MTN South Africa reported a 0.5% quarter-on-quarter contraction in subscribers to 29.7-million and MTN Nigeria reported a 2.5% uptick in subscribers to 60.5-million.

South Africa’s revenue improved 3.6% quarter-on-quarter and Nigeria had slowed its revenue decline to 1.2%.

MTN reported capital expenditure for the period of R21.2-billion, a 10.5% year-on-year increase, with 2 669 third-generation and 1 995 fourth-generation sites added.