MTN will cooperate with authorities “in any official investigation”, says the JSE-listed cellphone operator.
This is in response to the latest development in the controversial saga of MTN's dealings in Iran - the official launch of an enquiry into allegations of corruption by SA's anti-corruption unit.
The Directorate of Priority Crime Investigation (Hawks) this week confirmed it has launched a formal investigation into allegations of corruption relating to MTN's acquisition of a GSM licence in Iran, in 2004. The allegations, which first came to light in February, were made by Istanbul-based operator Turkcell, after it lost the bid for the said licence to Africa's largest operator.
According to Democratic Alliance shadow minister of defence and military veterans, David Maynier, Hawks head General Anwa Dramat on Monday informed him that the specialised police unit was now “investigating the allegations formally”. This follows Maynier's request for an inquest into what he termed “very serious allegations”, on 30 March.
'No legal merit'
The allegations, filed by Turkcell as part of a $4.2 billion lawsuit in a US federal court, are as yet unproven.
MTN has consistently denied the claims, saying they hold “no legal merit” and has duly opposed the monetary claim.
In a recent statement, former MTN Group CEO Phuthuma Nhleko strongly denied the claims, saying: “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.”
The plot thickens
Compounding the whirlwind of allegations and denial, one of MTN's former executives, Chris Kilowan, has reportedly admitted to being involved in acts of bribery.
Reports emerged during the past weekend that Kilowan blew the whistle on his former company by bringing evidence before the US court a month ago - implicating himself and other top MTN executives in corruption with regards to MTN's Iran licence.
Again, MTN denied the allegations, calling Kilowan's claims “outlandish” and accusing him of fabricating his under-oath statement, which the operator alleges he did in exchange for financial compensation from Turkcell.
Finally, this week MTN has come under pressure to explain reports that its Iranian subsidiary, MTN Irancell, was able to secure computer hardware that is banned under US sanctions against the country.
MTN holds a 49% stake in Iran's second cellphone operator, Irancell, which is 51%-owned and controlled by Iran Electronic Development Company.
MTN Group's corporate affairs officer Paul Norman says the company has “very clearly stated” it does not tolerate corruption. “MTN has zero tolerance for corrupt or unethical practices.”
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