MTN has strongly condemned what it terms an attempt by Turkcell to extort money from the operator.
According to a statement by the MTN group today, Istanbul-based Turkcell, Turkey's leading cellphone operator, used the threat of a US legal claim to forcefully obtain money from MTN. “[MTN also strongly criticises] Turkcell's refusal to cooperate with the independent investigation that MTN has set up, headed by the eminent British supreme court judge, Lord Hoffmann.”
According to MTN, Turkcell had threatened it with litigation in the US, claiming corruption in relation to MTN's bid to participate in the second mobile phone network in Iran. “In 2005, a consortium that included MTN was awarded the licence. MTN have appointed Hoffmann to lead an independent investigation [into] the allegations. Although MTN believes there is no legal merit to Turkcell's claims and no basis for a US court to consider them, [the company] nonetheless sought to obtain Turkcell's cooperation with the independent investigation.”
MTN says talks between itself and the Turkish operator have broken down as a result of the allegations, demands for damages and what it calls a “frivolous lawsuit” in the US.
An MTN spokesperson says Turkcell's threat will not succeed. “MTN wants Turkcell's cooperation with the independent investigation. Turkcell's accusations involve conduct alleged to have taken place in SA and Iran, and have no connection to the US. The US Supreme Court is widely expected to restrict such claims in a case that was argued last week.”
South African-born Hoffmann has served as a top legal figure in the UK over the last 20 years and, according to MTN, has a strong reputation for independence. “Over a long career, he has proven his willingness to challenge the actions of governments of all political persuasions.”
Related stories MTN reorganises structure MTN not focusing on a big deal
Share