BETWEEN THE CHAINS SIKONATHI MANTSHANTSHA

MTN Group’s investors must place the blame for their R52bn loss — so far — squarely at the door of the company’s management, including the board (see page 12). The lack of transparency about its problems with the Nigeria Communications Commission shows what CE Sifiso Dabengwa and his management team think of their investors. That is: not much.

And that is what they seem to think of the regulatory stipulations where they operate, too.

The company has known for quite a while that it was involved in a dispute with the NCC, but felt no need to inform its shareholders.

Of course I don’t expect the Nigerians to insist on the full payment of the US$5,2bn fine. By now they must be satisfied that they have made their point, and that it is being felt where it hurts the most.

In the case of its disdainful lack of transparency, investors unfortunately will not have much protection. Though the JSE makes it a requirement to promptly disclose any material development that may affect the price of shares, it is not exactly known to be aggressive in enforcing the rule.

This time will probably be no different: “The JSE is having focused conversations with the sponsors in the interest of MTN shareholders,” said Andre Visser, the general manager of issuer regulation, when asked about MTN. Don’t hold your breath. In many instances, behaviour like MTN’s has earned the guilty parties only a slap on the wrist, in the form of a public statement condemning the conduct, or an insignificant fine against the company (read: same shareholders).

Only on very few occasions have the guilty directors been fined in their personal capacities for their governance lapses.

Over the years MTN has not painted itself in the brightest of colours when it comes to good corporate governance. But the disdain with which it has treated its investors over the latest debacle in Nigeria seems to have reached new levels.

It was not so long ago that MTN was accused of paying bribes to secure a licence in Iran. It had to spend a chunk of investors’ money defending itself on that matter in courts in the US and in SA.

This year MTN has also found itself on the wrong side of Uganda’s communications authorities, who fined the company 5bn shillings for the alleged breach of its directives on text messaging.

From SA to Nigeria and in between, the company also stands accused of avoiding tax, thus robbing African governments of much-needed revenue that could build schools and hospitals.

The Mail & Guardian this month exposed allegations about MTN’s conduct on taxes, accusing it of channelling revenues to tax havens such as Mauritius and Dubai.

While there’s nothing illegal in trying to pay as little tax as possible, paying taxes in the many poor countries in which the company operates would not only serve to endear it to the authorities, but would also lend credibility to its claim of being a responsible citizen.

Responsible corporate social investment is not just about giving cheap blankets and soup to indigent people.

It starts with paying tax and real investment in the people.

But then, asking MTN to start treating its investors and regulators with some respect is perhaps too much: the company is still being accused of far worse in Syria, where the government may need its technology to locate and eliminate its enemies in the civil war.

Far be it from me to pronounce on the company’s guilt or otherwise in all these shenanigans. But the AmaXhosa have a saying: kungaqhuma kubasiwe — where there’s smoke there is fire.

Mantshantsha holds MTN shares Investors cannot expect much protection from the JSE on this one