MTN has vehemently denied allegations made by one of its former executives, Chris Kilowan. The operator calls his claims “outlandish” and typical of its Iranian nemesis, Turkcell's, “overall approach [of making] sensationalist claims with no legal merit”.
This follows reports at the weekend in which it emerged that Kilowan blew the whistle on his former company. He brought evidence before a US court a month ago that implicated himself and other top MTN executives in corruption with regards to MTN's acquisition of its GSM licence in Iran in 2004.
MTN, Africa's biggest cellular network, has been embroiled in a legal battle with Turkey's first GSM operator, Istanbul-based Turkcell, since March, when the latter filed a $4.2 billion lawsuit against the operator, arraigning MTN for bribery and corruption. Turkcell's 270-page affidavit suggests MTN may have undertaken to facilitate the installation of “eavesdropping technology” on its devices in Iran. MTN currently holds a 49% stake in Iran's second cellphone operator, Irancell.
Reportedly, Kilowan's under-oath testimony states that former MTN Group executive director Irene Charnley approved a $200 000 bribe to SA's former ambassador to Iran, Yusuf Saloojee, who assisted with the acquisition of the licence. Saloojee, it is reported, promised to pay Kilowan (who paid the money out of his own account) back when MTN paid him the money, which has not transpired.
Sour grapes?
MTN says it has noted the allegations put forward by Kilowan “in a recent deposition where he appeared as a witness for Turkcell in US court proceedings”. The company has strongly denied all of these.
Paul Norman, chief HR and corporate affairs officer at MTN Group, says: “MTN strongly denies any suggestion that MTN, or its representatives, intimidated Mr Kilowan in relation to his role in these proceedings. Mr Kilowan's testimony showed that he is not a reliable witness.”
Norman says Kilowan is a “disgruntled former employee” who has admitted to being paid by Turkcell for his role in the claims against MTN. “His evidence was discredited in a number of major respects [in his recent deposition].
“Mr Kilowan's outlandish allegations also reflect Turkcell's overall approach to the litigation, in making sensationalist claims with no legal merit.”
According to Norman, MTN maintains that the US courts have no jurisdiction to hear Turkcell's claims, and a motion by the courts to dismiss these is imminent.
Ongoing investigation
MTN says its own salvo, in parallel with the defence of the US litigation - the Hoffmann investigation into Turkcell's allegations - continues.
Norman says Kilowan was “formally invited to provide evidence to the Hoffmann Committee on 19 March. However, he has refused to do so, preferring instead to give paid evidence in Turkcell's US court proceedings. Turkcell was also invited to provide evidence to the Hoffmann Committee investigation, but refused to cooperate.”
Norman notes that MTN is working with the US authorities to manage its compliance with US sanctions against Iran, and that its group board and executive management team “constantly review all of MTN's operations, “including those in Iran”.
He says MTN also retains legal advisors to assist the group in remaining compliant with all applicable sanctions.
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