Lord Leonard Hoffman, head of the special committee set up to investigate assertions of corruption against MTN, has dismissed allegations that MTN employed underhanded tactics to acquire a GSM licence in Iran.
This follows a $42 billion lawsuit filed by Istanbul-based cellphone operator Turkcell in a US court last year. Turkcell accused MTN of corrupt practices, armament deals and complicity in human rights abuse with regard to its activities in Iran over the past eight years.
Hoffman presented the committee's findings to the MTN board today, following which MTN issued a Johannesburg Stock Exchange news announcement.
"Hoffmann's committee has determined that the Turkcell allegations are without foundation. Lord Hoffmann concluded that he found nothing in the conduct of MTN over this period that puts at question MTN's integrity or propriety."
MTN says the board is "particularly pleased" to note findings that the allegations against MTN's former group president and CEO, Phuthuma Nhleko, and MTN's former commercial director, Irene Charnley, were baseless. "Allegations of complicity against the chairman and the group president and CEO, Sifiso Dabengwa, were similarly found to be without substance."
MTN chairman Cyril Ramaphosa says the company has accepted Hoffman's recommendation that the committee's report be published in full.
MTN has repeatedly denied Turkcell's allegations the company had been involved in bribery, solicitation of the provision of weapons by SA to Iran, or other underhanded tactics in the acquisition of the second GSM licence in Iran in 2005. MTN owns a 49% stake in Iran's second cellphone operator, Irancell.
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