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MTN 'not unlawful or corrupt'

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 02 Apr 2012

MTN Group's former CEO has denied claims that bribery and corruption underpinned MTN's acquisition of a GSM licence in Iran in 2004.

In a statement yesterday, Phuthuma Nhleko said: “I can state quite categorically that, during my tenure as group CEO of MTN, no bribes were authorised or paid by the MTN Group to any South African or Iranian government officials to secure the mobile licence in Iran.”

This follows a $4.2 billion (about R32 billion) lawsuit filed by Istanbul-based mobile operator Turkcell against MTN in the US District Court of Columbia, in Washington DC, last week.

Unconfirmed claims

The lawsuit is based on allegations contained in a document, the authenticity of which has not yet been established, that claim “unprecedented corrupt acts” on behalf of Africa's biggest mobile operator group in a scheme dubbed “Project Snooker”.

According to the Turkish operator's court application, the “unprecedented corrupt acts” include:

* A payment of $400 000 by MTN to Iran's former deputy foreign minister Javid Ghorbanoghli for assistance in securing the mobile operating licence.
* A payment of $200 000 by MTN to SA's former ambassador Yusuf Salojee to assist with delivering a pro-Iran position at the International Atomic Energy Agency.
* MTN's financing of a trip made by former defence minister Mosiuoa Lekota to Iran to discuss the procurement of conventional arms.
* MTN's financing of a trip by Iran's nuclear negotiation chief Hassan Rowhani to meet former president Thabo Mbeki to discuss SA's position on Iran at the International Atomic Energy Agency.

Counter claim

MTN maintains there is “no legal merit” to Turkcell's claims and, on Thursday, said it would oppose the monetary claim.

The SA-based operator has set up an independent committee to investigate the claims and says the Hoffmann Committee (led by a UK legal scholar) has invited Turkcell to participate, which the latter has “to date not done”.

Nhleko reiterated yesterday: “MTN's conduct was not unlawful or corrupt and MTN was certainly not in a position where it could influence or fetter the decisions made by the South African government or any other sovereign state.”

Hawks' eye

The Democratic Alliance (DA) has spoken out on the matter, insisting that SA's specialised crimes unit the Hawks investigate what it terms “very serious allegations”.

Shadow minister of defence and military veterans David Maynier says, if the allegations are true, they suggest MTN may have been involved in multiple cases of corrupt activity that are “in possible contravention of the Prevention and Combating of Corrupt Activities Act”.

Maynier on Friday approached Hawks senior officials with a request that the unit investigates the allegations made against MTN. “I received acknowledgement of my request today and expect [the Hawks] will have to assess the material at hand. I don't expect a response until at least mid-week.”

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