Another MTN executive has left the company, over a R120m tender irregularity and for allegedly putting to market data modems that were "against network capabilities" and "had failed laboratory tests".
Eleanor Potter, general manager for the branded retail channel - responsible for the MTN retail outlets - received a golden handshake of more than 18 months' salary and shares said to be worth between R10m and R15m.
This is the second high-profile departure from the company in two weeks. It follows that of chief corporate services officer Robert Madzonga, suspended over alleged involvement in the sponsorship of last year's ICT Indaba that sank former communications minister Dina Pule.
MTN, Africa's largest mobile network operator, has been hit by a series of governance breaches involving its senior executives, including allegations of bribery over its Iranian operations, which was blamed for the departure of its chief financial officer, Nazir Patel.
On Thursday (22 August), MTN confirmed that an investigation had been launched against Potter last year. According to documents seen by Business Day dated July last year, she was charged with procurement irregularities. Madzonga is also facing charges of irregular procurement of legal services.
Allegations
"It has been alleged that Potter directed the purchase of laptop computers from a vendor that lost out on the quotation process and did not have a contract with MTN. An estimated amount of R120m was spent on the vendor in question as opposed to the R8m spent on the approved and contracted vendor within the same period," reads the letter by Shauket Fakie, head of business risk management.
The letter also alleges that Potter engaged Alcatel with the view of purchasing data modems in contravention of MTN's procurement policy, despite unfavourable laboratory test results.
The MTN contractor, New Age Holdings, is now seeking damages of more than R13m for loss of profit, according to its chief executive, Sello Phakoe. In a letter dated 21 August, MTN's acting chief corporate services officer Fusi Mokoena said the company was terminating relations with New Age over the court action.
During the same period as Potter's investigation another senior member, marketing general manager Mike Farion, was also under scrutiny for allegedly extorting television sets, home theatres and play stations from Samsung.
Contacted for comment yesterday, MTN SA confirmed there were allegations against Potter but said her departure was cordial and that she was cleared.
However, the company would not comment on the allegations against Farion.
Source: Business Day via I-Net Bridge