Yesterday morning my tax advisor called me frantically. She was about to finish my tax returns for 2015 and she wanted to discuss a very important matter before doing so.
She suggested that I drop my claim for a travel allowance because it would require a whole lot of work including reconciling my logbook for a long period back. But dropping this claim would cost me a few rand in my tax returns.
I readily conceded. Not because I can afford to give the taxman money. In fact, I need every cent I can lay my hands on. I agreed because I know that claiming money from the revenue service sometimes opens one up for scrutiny and I would not want to be found wanting.
The last thing I can afford is an accusation or even an insinuation that I attempted to defraud the taxman. One thing I have long accepted is that I have limited privacy and my type are always watched to make one false move.
This got me thinking about cellphone giant MTN. It is common knowledge that CEO, Sifiso Dabengwa, resigned with immediate effect as a results of the $5.2bn fine imposed on the company by the Nigerian Communications Commission.
The company was cited for failing to deactivate 5.1-million unregistered SIM cards on its network.
Dabengwa has been praised all round for his decision. Many have compared his move to politicians who, whenever found foul of the law or rules, dig in their heels and refuse to go.
I agree, Dabengwa did the honourable thing.
It remains to be seen if the company takes any responsibility for this. It is important to note that MTN is still contesting the fine.
In a statement, MTN said: “The engagement with the Nigerian authorities on the Nigerian Communications Commission fine is continuing and shareholders will be advised as soon as there are any material developments on this matter.”
Taking responsibility for mistakes – and leaders taking a fall for such – is very honourable.
But that is not the be all and end all. What for me remains an issue is the issue of ethics. I am reminded of what someone once said: “when we act ethically, we gain integrity”.
Taking into consideration that MTN has not accepted liability as yet, my comments will be general and not specific about the case.
I had a conversation with a good friend of mine about MTN and he used a very interesting metaphor. He said MTN may be 21 years old, but being in the top 10 of the world’s telecommunications companies, it is a big player.
My friend said therefore MTN must act its size not its age. This after all is a company whose market capitalisation is $34.5-billion (as of May this year). These are big numbers.
A company the size of MTN is like a public figure. While it enjoys the trappings that come with the space it occupies, it remains susceptible to all sorts of trappings including professional jealousy, scrutiny and lure of luxury.
Those that are aware of MTN’s size and the influence this comes with, will want to use the company for their own benefits, some of which are less honourable.
To this effect, it is incumbent for MTN to be extra careful about who it does business with and how it does business. When it comes to things like compliance – whether it is tax or processes – it cannot be found on the wrong side, in any country.
The mere mention or association with non-compliance is damaging to its reputation. It is the same as any public official being associated with spousal abuse. It matters little that the allegation may be unsubstantiated, the mere association with such behaviour is a reputational albatross around one’s neck. The burden of (dis)proof is always yours.
So for me really, while it is important that MTN protests its innocence, the mere fact that it is mentioned in a case of potentially serious non-compliance is disconcerting and seriously damaging to its reputation.
If this were not the case, I see no reason why Dabengwa would resign. It may very well not be an admission of guilt on his part or that of the company, but it is an addmission that the Nigerian saga officially, is damaging to the company’s good name.
Reputation is not always damaged by what we say or do. We need to be careful who and what we are associated with. Because even if it is untrue, the mere association may just be our death knell.
Recent Comments