Allegations that the MTN Group was pervaded by a culture of extensive corruption in its Iranian dealings are “scurrilous and untrue” - and the utterings of an “aggrieved” competitor.
So says former MTN Group president and CEO, Phuthuma Nhleko, responding to compounding public controversy over the operator's acquisition of a GSM licence in Iran in 2004. Nhleko served as head of the firm for a period of almost 10 years, until March last year.
Istanbul-based operator Turkcell filed a $4.2 billion lawsuit against MTN in March, alleging the operator obtained the licence through the employment of unscrupulous acts. MTN has since recurrently headlined media reports as further issues and allegations - including those of corruption, bribery and human rights violations - crop up.
Yesterday, following news that SA's specialised anti-corruption unit, the Hawks, had launched an official investigation into the list of allegations against MTN, Nhleko said he felt it necessary to repeat his original assertion that no bribery had taken place on his watch.
“I repeat that, during my tenure as CEO of MTN, no bribes were approved or paid with my consent or the consent of the MTN Group.”
Besides, says Nhleko, neither the group, nor he as CEO, were in a position to influence or fetter the decisions and foreign policy of the South African government, “and we did not do so”.
Reckless retribution?
Nhleko says the fact that Turkcell made the claims for the first time seven years after the licence was issued in Iran is “inexplicable”. He again rubbished the allegations, saying: “[They] are entirely without substance and have been made recklessly and irresponsibly by an aggrieved competitor.”
He further slates Turkcell for attempting to pursue its claims in a US court, despite the issue at hand being between a Turkish and South African company, regarding a licence in Iran. “There is no connection whatsoever with the US.”
The issue of jurisdiction will ultimately be decided by a US court, but Nhleko says - in the meantime - “Turkcell continues to use the media to publish its far-fetched allegations”. He says these are based on “contradictory and inconsistent” evidence given by a “disgruntled former MTN employee” by way of a statement in the US.
One of MTN's former executives, Chris Kilowan, reportedly admitted to being involved in acts of bribery, blowing the whistle on MTN itself, as well as other top MTN executives.
Nhleko says he is willing to assist MTN and South African law enforcement agencies in rebutting what he says are false claims and allegations made by Turkcell.
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