MTN bids farewell to another executive

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, GM for 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.

JSE-listed MTN, Africa’s largest mobile network operator, has been hit by a series of governance breaches involving its senior executives, including bribery over its Iranian operations, which was blamed for the departure of its chief financial officer, Nazir Patel.

Yesterday, MTN confirmed that an investigation had been launched against Ms Potter last year. According to documents seen by Business Day dated July 30 2012, she was charged with procurement irregularities. Mr Madzonga is also facing charges of irregular procurement of legal services.

“It has been alleged that Ms (Mitrovich) Potter directed the pur- chase of laptop computers to a vendor that lost out on the quotation process. The vendor 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 Ms Potter engaged Alcatel with the view of purchasing data modems in contravention of MTN’s procurement policy, despite unfavourable laboratory test results, and against network capabilities.

The prejudiced MTN contractor, New Age Holdings, is now seeking damages in excess of R13m for loss of profit, according to its CEO. Sello Phakoe. In a letter dated August 21, MTN 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 Ms Potter’s investigation another senior member, marketing GM 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 Ms Potter, but said her departure was cordial and that she was cleared.

However, the company would not comment on the allegations against Mr Farion.