In a bid to “set the record straight” on recent allegations, MTN Group CEO Sifiso Dabengwa on Friday released a statement.
Attempting to set stakeholders' minds at ease, “particularly dedicated staff who work under difficult conditions across emerging market operations”, Dabengwa reiterated MTN's stance that the company “does not tolerate illegal or corrupt practices”.
An “African success story”, MTN has strong ethics and values, said Dabengwa. He said the group takes allegations of wrongdoing by its employees seriously. He cited the appointment of an independent committee (chaired by jurist Lord Leonard Hoffmann) to investigate allegations made by “disappointed competitor” Turkcell as indicative of this.
Sour grapes
Istanbul-based Turkcell has accused MTN of employing underhanded tactics to acquire a GSM licence in Iran in 2004, and in March filed a $4.2 billion lawsuit against the local operator. MTN holds a 49% stake in Iran's second cellphone operator, Irancell.
“In any event, the former employee, who is the source of the claims, has been shown through the evidence in his deposition not to be a credible witness. He is being paid by Turkcell for his role in their legal claims, and has admitted that he is motivated by a grudge against MTN's former management. Contrary to Turkcell's public statements, the former employee's evidence was significantly discredited in his recent deposition as largely based on speculation, innuendo and hearsay.”
This is in reaction to MTN's former head of its Iranian business, Chris Kilowan, who has testified against MTN in the US court, implicating himself and other top executives in a web of corruption around the Iranian acquisition some eight years ago.
Dabengwa says the independent committee will determine whether there was any misconduct on the part of “the former employee now working for Turkcell”, or by any other MTN employee.
“Turkcell's allegations that MTN is engaged in a 'cover up' are simply nonsense. MTN launched its investigation into Turkcell's claims long before Turkcell filed them. MTN has appointed Lord Hoffmann, one of the world's most eminent jurists, to ensure the independence and integrity of the investigation. We are confident that the investigation will determine whether there was any misconduct...”
He says MTN will “fully cooperate” with SA's specialised Hawks unit, which started a formal enquiry into the matter last week, “in any investigation into this matter”.
“MTN would like to reassure our stakeholders that we are taking all necessary steps to deal with the Turkcell allegations promptly and effectively, consistent with the law and with our company's ethics and values.”
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