MTN vindicated on whistleblower dismissal allegations

MTN South Africa has been vindicated by the Johannesburg Labour Court, which found no merit to former employee Mankakane Violet Magagane's allegations that she was retrenched for lifting the lid on alleged corruption within the organisation.

A former legal advisor at MTN South Africa, Magagane was affected when MTN embarked on a restructuring exercise that affected 700 employees.

"MTN South Africa welcomes the ruling by the Labour Court, which found no evidence that Ms Magagane was unfairly dismissed for being a whistleblower. The ruling affirms our position that MTN is an ethical company that values integrity and fairness, and has zero tolerance for corruption and unethical business," says Themba Nyathi, Chief Human Resources Officer at MTN South Africa.

He says it is for these reasons, particularly the court's finding that Magagane's dismissal was substantially fair, that MTN is satisfied with the outcome of the court case.

The labour court ruled, however, that procedurally, Magagane's dismissal was unfair as the time-frame between when she received her notice of retrenchment and input for alternatives was too tight and unreasonable.

MTN has been ordered to pay Magagane six months' compensation, while both parties will share the legal costs. Her claim for shares was, however, dismissed.

In 2012, Magagane lodged a case of unfair dismissal against MTN, alleging that she was discharged for blowing the whistle against alleged fraudulent activities involving R12 million in payments made to a legal services company.

MTN now considers this matter closed.