MTN is caught in a bind after poaching a top executive from rival Vodacom.
New vice-president for the South and East Africa region, Godfrey Motsa, may not be able to start his job in July, as Vodacom wants a court order preventing him from joining MTN before the end of 2016 to be enforced.
In 2015, Vodacom took Motsa to court after he resigned as its chief officer for the consumer business unit to join MTN. In February, the court ruled that Motsa was bound by his contract to serve a six-month notice period, which expires at the end of June, and also a further six-month restraint of trade agreement, which prevents him from joining any company similar to Vodacom.
Vodacom spokesman Byron Kennedy said on Tuesday it would “seek full compliance with the restraint of trade”.
Vodacom and MTN are competing aggressively, especially in the consumer market.
Motsa was previously head of Vodacom in the Democratic Republic of Congo and also in Lesotho.
But MTN maintains that Motsa’s appointment is not in breach of the court order as his portfolio excludes the South African operations and he will not be based in SA.
Chris Maroleng, MTN executive for group corporate affairs, said Motsa’s appointment and his location in the region “will be in compliance with his restraint of trade”.
He did not say where exactly Motsa would be based.
The region covers Uganda, Rwanda, Zambia, South Sudan and a joint venture in Botswana and Swaziland. His appointment was announced along with several others on Monday including former Vodafone and Vodacom executive Rob Shuter as MTN Group CEO.
Shuter will take up the post only in July 2017 because he has to take “gardening leave”.
The appointments are aimed at strengthening management, enhancing governance and aiding strategy in the group as it recovers from a crisis caused by a $1.7bn fine slapped on it by Nigerian authorities for regulatory breaches.
After former CEO Sifiso Dabengwa quit in November 2015, chairman Phutuma Nhleko assumed an executive position and reinstated a structure designed by him when he was CEO between 2002 and 2011.
The business was broken into three regions – South and East Africa; the Middle East and North Africa; and West and Central Africa.
But CEOs of SA, Iran and Nigeria will report to the group CEO. (BDlive.com)
•Photo shows MTN Chairman Phutuma Nhleko.
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