Business & Finance

MTN Clears CEO Ralph Mupita of Misconduct Allegations Following Independent Investigation

MTN Group’s board has cleared CEO Ralph Mupita of any wrongdoing after an independent investigation found no evidence to support allegations of improper conduct. This comes after a Sunday Times report claimed that an anonymous whistleblower accused Mupita of favouritism involving a senior female executive, raising concerns among top management.

The allegations suggested that Mupita tried to shift certain responsibilities from MTN South Africa CEO, Charles Molapisi, to the female executive, a claim that reportedly caused tension among the leadership. According to the report, these concerns were significant enough to warrant discussion during a board meeting held in China earlier this year.

In response to the anonymous whistleblower’s claims, the MTN board appointed an independent law firm to investigate. However, the whistleblower refused to engage with investigators. Despite this, the law firm, supported by legal counsel, found no substantial evidence of misconduct on Mupita’s part.

Rumours of Infighting and Mass Resignations

The Sunday Times article also claimed that several MTN executives were unhappy with Mupita’s leadership style, with some allegedly threatening to resign. This was said to reflect a broader issue within the company’s leadership, where a culture of fear reportedly hindered open dialogue. A former MTN executive was quoted as saying that internal conflicts and power struggles were affecting the company’s performance, with only a handful of executives daring to push back against Mupita’s decisions.

Despite this, Bloomberg reported that the majority of the executive team – ten out of fifteen members – signed a memorandum expressing their support for Mupita. The publication cited anonymous sources within the company, further highlighting the division between those who backed the CEO and those who felt disillusioned.

Mupita’s Reassurances Amid the Turmoil

Earlier in the week, Mupita addressed MTN employees, acknowledging the situation and assuring staff that proper governance procedures were in place to handle issues related to leadership. In his letter, Mupita stated, “The group board is going through the necessary processes to understand the matters and will address them.”

On Friday, MTN officially closed the case, issuing a statement via the JSE news service confirming that the investigation had been completed and no misconduct had been found. “The group board held a special meeting on Wednesday, 4 September 2024, to deliberate on a report by an independent law firm… tasked to verify allegations contained in an anonymous complaint against members of the MTN executive,” the statement read.

Case Closed, Board Supports Mupita

The independent report concluded that there was no evidence of improper conduct, and the board accepted these findings. “The board is of the view that the matter has been addressed and is now closed,” MTN said. Furthermore, the company expressed its full support for Ralph Mupita, affirming their confidence in his leadership and the company’s overall strategy.

This investigation and its conclusion mark a significant moment for MTN, as the company seeks to move forward from the allegations and refocus on its strategic goals under Mupita’s leadership. The closing of the case and the board’s statement of support may help settle concerns within the company’s leadership ranks and allow MTN to restore internal stability.

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